Whether it’s to make it more appealing for potential buyers or simply for your own comfort, carrying out home improvements can also add value to your home and increase the asking price.
Discover what adds value to a house below, including upgrades you can make and potential ways to finance them.
What adds value to a house?
A lick of paint and some new carpets will give your home a more loved feel that prospective new buyers will appreciate. But in terms of adding value to your home it’ll take some investment in full renovations – and even structural alterations – to see the real benefit.
Not only can a well-done extension add extra space to your home but, if done properly, it can add value to your home. A single storey extension can add around 4 to 7% extra value, while a double storey extension could add 11%1.
Do keep in mind that the size of an extension isn’t fixed and the materials required depend on your property, which means the cost – and the potential added value – will vary.
It’s also worth noting that you may need to apply for planning permission to build an extension. The HOA has a useful guide to whether your build will need planning permission.
A loft conversion
Converting a loft and transforming the space into an extra bedroom can add as much as 20% to your property value, according to the Nationwide Building Society.
The cost of a loft conversion varies depending on the size and location of your home, but tends to be between £21,000 - £44,0002.
You won’t need planning permission as a conversion will fall within your permitted development rights, unless you live in a:
- Listed building
- Conservation area
- National park
- Area of Outstanding Natural Beauty.
Contact your local planning authority in advance to make sure no other restrictions apply to your property.
An extra bathroom
It should come as no surprise that converting a space into an extra bathroom can increase the value of your house, adding 3-5% onto your asking price3. It’s vital, however, that you don’t sacrifice a bedroom to create the extra bathroom. This could undo any increase in value.
If you think you need a large space to convert, think again. A full bathroom will usually require a space of at least 1.7 x 2.6 metres, whereas a shower room can squeeze into an area as small as 1 x 2.8 metres – not much more than you would need for fitted wardrobes.
A new bathroom can cost anywhere from £2,500 to £10,000, depending on your location and choice of fixtures and fittings. Fortunately, unless you’re building an extension, you shouldn’t require planning permission – although any work will have to comply with Building Regulations.
A new kitchen
Many people consider the kitchen to be the heart of their home, and can be a major focus for buyers. Giving your kitchen a makeover can add as much as 6%4 to the value of your home and make it much easier to sell.
A new kitchen costs around £8,0005on average, but this number varies depending on your specific plans. Fitting new worktops and replacing door and drawer fronts can achieve the same results as replacing the entire kitchen at a fraction of the cost.
While you’ll have to sacrifice some outdoor space, a conservatory is a great way to add an extra room to your home, increasing its value by 5%6.
Adding a conservatory doesn’t require planning permission so long as the floor area is less than half that of the original house. You can also get one without needing building regulations approval, provided that at least half of the walls and three-quarters of the roof are glazed or transparent, as well as ensuring that the conservatory is separated from the rest of the house by an external door.
How to increase the value of your house: tips and tricks
There are, of course, smaller improvements that you can make to add value to your home if you’re on a smaller budget. While these changes aren’t on the same scale as our previous recommendations, they might help get your house off the market and increase the asking price.
- Fix superficial details, such as peeling paint, carpet stains and dirty walls
- Paint walls a neutral colour
- First impressions matter when selling your home, so spruce up your front door. A lick of paint and a new doorknob should do the trick
- Tidy up the garden by pulling out any weeds, trim borders and cutting back overgrowth
- Freshen up your bathroom by getting rid of limescale, replacing dull or dripping taps and getting new shower screens
- Ensure heating and lights work correctly before you have visitors, making any crucial repairs to help it sell
- Declutter and ensure all spaces are tidy to make rooms appear larger
Go through your house with a critical eye and make a checklist of all the small changes that need to be made before you put your property on the market.
What adds the most value to a house?
In a recent survey by the National Association of Estate Agents (NAEA), half of the respondents said adding an extra bedroom – usually by converting the loft – was the most valuable improvement.
A third agreed that enlarging your kitchen was the best way to boost your selling price, while others recommended adding a conservatory or converting a garage into a living space.
How to fund home improvements
Whether you don’t have enough savings or simply don’t want to use them, taking out a loan or remortgage could be the best way to pay for your home improvements.
Home improvement loan
A home improvement loan will typically enable you to borrow up to £500,000 and, because it is secured against your property, can offer lower interest rates than a personal loan. You’re free to spread the cost with fixed repayments for easy budgeting.
With a remortgage, you can borrow more and spread the cost of your building work over the remaining lifetime of your current mortgage. Not only do you have longer to pay, but it offers even lower monthly repayments. Just remember that spreading the cost over a longer period will result in you paying more interest, and you could end up paying more in total.
The expert finance team at Norton Finance is happy to discuss all of your options, finding the best possible rate for your specific circumstances. Get in touch for a free, no-obligation quote on 0800 694 5566.