The spring selling season is well and truly underway and while the fear of Coronavirus may be dampening buyer and seller appetites a tad, there is still plenty of market activity at present.
We analyse which property renovations add the most value to your home, for those thinking of sprucing up before selling up.
We look at the average value added across a number of renovations, what this equated to in a monetary sense, the cost of carrying out the work, and how much ‘profit’ was left in terms of the value it adds once cost are deducted.
Forget loft conversions, solar panels and the garden
The figures show the biggest waste of time for home sellers looking to add value is the loft conversion. It adds the most value to a properties value at 10.8%, a huge increase of £24,971, but it costs a whopping £33,222 to complete on average. As a result, getting a loft conversion may add value to your home, but it will leave you out of pocket by -£8,251.
The same goes for the eco-friendly upgrade of solar panels. While they add £1,156 in value, they cost an average of £4,000 to install, leaving you -£2,844 out of pocket.
The garden is the only other area of the home not worth tackling to add value to your home. Overhauling the average garden costs £5,000 and returns just £3,237, a loss of -£1,763.
So what does add value?
The kitchen is the heart of a home and focussing your attention there is money well spent. With 5.5%, or £12,717, added in value as a result of a full kitchen refurb and with the refit costing just £8,000, you can add £4,717 to your home.
Redecorating bedrooms and living spaces was the next best job. A full refresh of your home to bring it into the modern age, refresh tired decor or even give it a neutral canvass for the next owner can add £4,268 in value once you take the costs of £2,900 from the added value of £7,168,
The boiler and central heating is vital to the wellbeing of a house and replacing yours with a brand new system will set you back £2,375 but it will add £4,393 in value.
Renovating or fixing the roof (£1,668) and bathroom (£1,387) were also amongst the areas of the home where home improvements were money well spent.
Many of us will be currently preparing for the big spring clean but for those with the thought of selling on their mind, there may be some much larger tasks at hand. Renovating or improving your home before a sale is a great way to help boost up your asking price but only if it’s done properly.
The trick is to know which areas are going to add value and always ensure you get a professional to carry out the work. A bodged job will be more than noticeable and will decrease the value of your home rather than boost it.
When considering which areas to improve always weigh up the value it is likely to add and what this percentage equates to on the price of your personal property. Then compare this with the quote you receive for the work and if you’re in the green, then it’s always worth going ahead.
Just remember, not everyone will see the same value as you so don’t go overboard and always present a neat, neutral canvass to entice buyers.
|Ranking by added value minus cost to renovate/improve|
|Type||Home area||% value added||£ value added||Potential costs to renovate||Added value – minus cost|
|Renovation / improvement||Kitchen||5.5%||£12,717||£8,000||£4,717|
|Renovation / improvement||Full basic re-decoration (bedrooms and living room)||3.1%||£7,168||£2,900||£4,268|
|Renovation / improvement||Boiler / central heating||1.9%||£4,393||£2,375||£2,018|
|Renovation / improvement||Roof||3.1%||£7,168||£5,500||£1,668|
|Renovation / improvement||Bathroom||2.6%||£6,012||£4,625||£1,387|
|Extension / conversion||Conservatory||6.0%||£13,873||£13,071||£802|
|Renovation / improvement||Double glazing||3.0%||£6,936||£6,250||£686|
|Renovation / improvement||Garden||1.4%||£3,237||£5,000||-£1,763|
|Renovation / improvement||Fit solar panels||0.5%||£1,156||£4,000||-£2,844|
|Extension / conversion||Loft conversion||10.8%||£24,971||£33,222||-£8,251|
|Value added based on the % value as a monetary sum on the current UK average house price of £231,215. % value added sourced from the Hiscox Renovations and Extensions Report (2018).|
|Average house price||Gov.uk|
|Value added||Hiscox Insurance|
|Cost of Job||Household Quotes|