The latest research by London’s largest lettings and sales estate agent brand, Foxtons, has revealed just how much value London homeowners can add to their property by following the trend of ‘digging down’ and adding a basement, a trend that is already popular across the prime London market.
With offices across the capital, Foxtons has an unrivalled knowledge of just what London homebuyers are looking for and what features add the most value to a home, ensuring the capital’s sellers achieve the very best price when marketing their home.
Basements boost average London property value by 54%
The research shows that with the average London house coming in at an estimated 111.97 square metres in size, the addition of a basement can add a further potential 56 square metres of living space.
With the average London home currently commanding £8,210 per square metre, adding a basement living space could boost the value of your home to the tune of £459,653 in the current market.
Of course, there’s the cost of construction to consider, which averages at £3,000 per square metre when creating a new basement from scratch, although there are other costs to consider such as architect and planning fees.
This means the average cost of a basement renovation comes in at £167,955. While it’s certainly not a cheap project to undertake, it does means that you could boost the value of your London home by £291,699 once the cost of construction has been accounted for – that’s a 54% increase in value on the current average London house price of £537,424.
Prime market basements bring the biggest benefit
Naturally, ‘digging down’ adds the most value within the prime London market and so it’s hardly surprising that so many high-end homeowners have opted to add a basement to their prime London property.
The research by Foxtons shows that in Kensington and Chelsea, the addition of a basement can add almost £1.2m to the value of the average home once the cost of construction has been accounted for, equating to a 96% increase on the average value of a property in the borough.
In Camden, the actual added value of a basement can boost the average value of a home by £683,075, an increase of 84%. In Islington, it would increase the value of a home by 81%, with Westminster (+78%), City of London (+76%), Hammersmith and Fulham (+75%) and Wandsworth (+69%) also seeing some of the largest uplifts.
Serious value added in even more affordable boroughs
Even in London’s most affordable borough, Barking and Dagenham, a basement living space would add over £121,000 to the average value of a home – a 35% increase in price.
In Sutton, Bexley and Croydon the addition of a basement would boost the current average value of a home by as much as 40%.
Foxtons CEO, Guy Gittins, said, “If there’s one thing that’s sure to add value to a London home it’s the addition of more living space.
For most, this means adding an extension or a loft conversion, but for those really looking to maximise their property’s potential, ‘digging down’ allows them to seriously increase both the size and value of their home.
Of course, it’s a complicated process and one that requires a lot of planning and a sizable budget to achieve. It may also make you a tad unpopular with your neighbours due to the lengthy and extensive construction process required.
However, for those who can execute such a mammoth renovation project, it can be well worth it. Not only will your home command a much higher price when you do come to sell, but it will hold far higher appeal in the eyes of prospective buyers when compared to the competition.”