Get a new loo or a loft conversion
Source: Fábio Perez via Flickr
Adding a bedroom and a bathroom through an extension or loft conversion can add more than 20% to a property’s value, according to research by Nationwide.
The building society’s research found that extending to accommodate an extra bedroom could add more than 10% to house value while an extra bathroom could add 5% to the value of the average home.
Robert Gardner, Nationwide’s chief economist, said:
“Following our research feature in 2014, we have re-examined the factors that affect the value of homes, and the potential to add value.
“Location remains key to house values, but other factors such as the size of the property, including the number of bedrooms it offers, are also important to homebuyers. Home improvements that increase floor area, such as an extension or loft conversion, remain a good way to add value.
“Ultimately of course, the decision to invest in the home is an individual one, taking into account the costs and hassle involved, as well as potential benefits.”
1. More space
A 10% increase in floor space, other things equal, adds 5% to the price of a typical house, whilst adding space equivalent to a typical double bedroom to a two-bedroom house can add around 11% to its value.
A second bathroom
A second bathroom could add 5% to the value of the average house, the report pointed out.
3. Loft conversion
The report read: “Homeowners that add a loft conversion or extension incorporating a double bedroom and a bathroom can add more than 20% to the value of a three bedroom, one bathroom house.
“Our analysis suggests that, providing the room is useable, adding an extra bedroom can be a good way to increase the value of a property. The table below shows the value added for different property types by increasing floor area to accommodate an extra bedroom.”
4. Energy efficiency
Energy efficiency was also noted as a key way to make homes more attractive.
Gardner said: “Aside from extending, other ways of making your home more attractive include making it more energy efficient. Despite the recent fall in global commodity prices, energy costs remain a concern for households and there has been a growing emphasis on environmental sustainability in recent years. Recent data from the Department for Communities and Local Government (DCLG) shows that energy efficiency within the housing stock has continued to improve.”