A new study has uncovered the most profitable garage conversions homeowners can apply to their properties. According to the figures, turning a garage into an extra bedroom will add an average of £77,526 to a home’s value, leaving residents with an average profit of £59,526.
The research reviewed the average value increase generated by common garage conversions, such as home offices, extra bedrooms and utility rooms. It then subtracted the cost of installing each garage conversion to discover which one leaves homeowners with the biggest profits. Overall, it found that using a garage conversion as an extra bedroom would create the largest return on investment.
Based on the calculations produced by Go.Compare home insurance, other profitable garage conversions include a home office, a playroom and a kitchen/diner extension. Out of these three, a home office gives the biggest return on investment, costing an average of £16,035 to install and producing an average profit of £22,728.
However, the comparison site advised that thorough research will be needed before completing a conversion of any kind, and warned that certain restrictions may prevent them from getting one.
Ceri McMillan, home insurance expert at Go.Compare, said: “Investing in a garage conversion is a great way to increase your living space, and our research shows that you can use it to make a good profit in the long run. If you’re looking to convert your garage, it’s worth considering which type of room will have the best impact on your home’s value, as well as which one you will get the most use out of.”
“However, keep in mind that various factors can influence the value a garage conversion will add to a home, including the quality of the conversion, so be sure to plan it out properly. Plus, while a garage conversion may seem like an appealing DIY project, it’s important to remember that it’s a significant refurbishment job to apply to your home.
“You will need to do a lot of research beforehand to ensure it’s a safe, feasible option for your property. In some instances you may not be able to go through with it or there could be certain rules to obey by. For example, the garage door may need to stay in place. Be sure to get professional support as often as needed, or else you could end up doing more harm than good to your home and its valuation.”
For those able to get one, the comparison site found that converting to a kitchen/diner extension or a playroom would also boost a home’s value. A kitchen/diner extension can result in an average profit of just under £19,000, while a playroom extension produces an average profit of £12,096.
Out of those researched, utility room conversions were found to be among the least profitable. However, at an average cost of just under £17,000 to install, they are among the cheapest garage conversions and can still result in a profit of £2,429 on average.
Despite the comparatively low profit, utility room garage conversions are one of the most common. Over a quarter (27%) of those who get a garage conversion use it as a utility room, while around one in 10 (11%) use it as a dedicated home office. Others used the conversion to add some leisure space to their home, as 13% said they transformed their garage into a home gym.