Renovating a property can be an effective way to increase its market value. Whether you are looking to sell or rent out your home, strategic upgrades can help attract higher offers. In the UK, certain renovations are known to have a greater return on investment than others. Understanding which improvements will add the most value is crucial for getting the best return.
An Overview Of Renovations That Maximise Property Value
| Home Upgrade/Renovation | Average Cost | Potential Increase in Property Value |
|---|---|---|
| Loft Conversion | £25,000 – £50,000 | 15-20% increase in property value |
| Garden Office | £8,000 – £20,000 | 5-10% increase in property value |
| Nice Garden (Landscaping) | £2,000 – £10,000 | 5-10% increase in property value |
| New Driveway | £3,000 – £8,000 | 2-5% increase in property value |
| Kitchen Renovation | £5,000 – £20,000 | 5-10% increase in property value |
| Energy Efficiency Upgrades | £1,000 – £10,000 | 10-15% increase in property value |
| Curb Appeal (External Upgrades) | £2,000 – £7,000 | 2-5% increase in property value |
| Bathroom Renovation | £3,000 – £10,000 | 3-5% increase in property value |
Kitchens and Bathrooms – Up To 5% Increase in Value
One of the most important areas to focus on when renovating a property is the kitchen. A modern, functional kitchen is a key selling point for many buyers. Updated appliances, new countertops, and fresh cabinetry can transform the space and make the home feel more appealing. According to research, a kitchen renovation can add up to 5% to the value of a property.
Bathrooms are another area where improvements can make a big impact. Replacing old fixtures, improving lighting, or adding a new shower or bath can create a more luxurious feel. Modern, stylish bathrooms are highly sought after by buyers, especially those looking for homes with minimal work required. Renovating both kitchens and bathrooms can give the property a more contemporary, appealing look that stands out in a competitive market.
Energy Efficiency Upgrades – 10-15% Increase in Value
Energy efficiency is becoming increasingly important to both buyers and renters. With rising utility costs, homes that are energy efficient are more attractive. Upgrading to double-glazed windows, installing better insulation, and adding smart thermostats can all improve a home’s energy rating. A home with a high EPC (Energy Performance Certificate) rating can demand a higher price. In fact, properties with better energy ratings can command a 10-15% higher price than those with lower ratings.
Many buyers are now looking for properties that will help them reduce long-term running costs. By making a property more energy-efficient, you not only help attract these buyers, but you also increase the overall appeal and value of the home.
Adding Extra Living Space – 15-20% Increase in Value
Increasing the usable space of a property is one of the most effective ways to boost its value. This can be done by converting a loft or basement into a livable space, such as an extra bedroom, office, or even a small apartment. In cities like London, where space is limited, buyers are often willing to pay a premium for additional square footage. A loft conversion, for example, can add as much as 15-20% to the value of a property.
Extending a property by building out into the garden is another way to increase space. However, planning permission and local council rules must be taken into account before starting any major structural changes. It’s essential to ensure that any changes you make are in line with local regulations to avoid complications during the sale process.
Curb Appeal and External Improvements
The exterior of a property is the first thing potential buyers or renters will see, so it’s important to make a good first impression. Small changes to improve curb appeal, such as painting the front door, replacing old windows, or cleaning the driveway, can significantly increase a property’s attractiveness. Adding outdoor living spaces, such as decking or a well-maintained garden, can also add value.
In urban areas, properties with attractive gardens or small patios are highly valued as outdoor spaces are often rare. Even in smaller properties, making the most of the garden can improve appeal. A well-kept front and back garden can make a significant difference in the sale price, especially in family-friendly areas.
General Maintenance and Modernisation
Sometimes, simply addressing general maintenance issues can have a big impact on a property’s value. Replacing worn-out carpets, fixing leaks, repainting walls, and ensuring all appliances are working properly can make the property more appealing. Modernising outdated features, such as replacing old light fixtures or giving the walls a fresh coat of paint, can also make a huge difference in the perceived value of a property.
For many buyers, the less work they have to do when they move in, the better. Homes that are ready to live in, with no major repairs needed, tend to sell for a higher price than those that require a lot of work.
Conclusion
Renovating a property with a focus on key areas such as the kitchen, bathroom, and energy efficiency can add significant value. Expanding the living space through conversions or extensions is also a great way to boost a property’s worth. Paying attention to curb appeal and general maintenance can help make a property more attractive to buyers. With the right renovations, you can increase your property’s value and ensure you achieve the best return on your investment.
