Add value to your property for higher returns

There are many reasons to carry out home renovations or add an extension. But if your motive is to increase the sale value, you’ll want to know which type of work brings the best return on investment. Certain projects are quick and easy and will add instant interior appeal, while others may be larger extensions that will give you kerb appeal or help your house sell for the right price on the property market. While you may be tempted to take on large scale projects, don’t forget that the smaller things can add value too. Here are some of the most popular home improvements and examples of how much value you could expect them to add.

NEW BATHROOM (0-5%)
An unattractive bathroom can limit the value of your home, particularly if the décor makes it easy to date the last overhaul. Buyers can also have a preference for a bath or shower, or be put off by cheap fittings. So, installing a new bathroom can help to raise your home’s value by about 5%, but only if your current bathroom has evident problems. You’ll need to weigh up the cost of the work with the gain to be made, as the profit margin can be small.

OPEN-PLAN LIVING (0-6%)
Over recent years, there has been a definite shift in preference towards open-plan living. If your home has an older layout, with a separate dining room, living room and kitchen, you could increase the sale price by up to 5-6% by simply removing internal walls. Of course, you’ll need to seek specialist advice before undertaking the work, as not all walls can be easily removed. And your home may require further work, such as redesigning your kitchen, if the current layout doesn’t lend itself to an open plan.

PLANNING PERMISSION (0-10%)
You don’t necessarily have to carry out any work at all to raise the value of your home. Obtaining planning permission for an extension could help to attract a certain buyer who otherwise wouldn’t look at your property.

CONSERVATORY (5-10%)
A conservatory adds more living space to your home, but it doesn’t automatically raise the value by a significant margin. Buyers are looking at how useful that additional space is. If they’re able to build a first-floor extension above it, that can be very valuable. Or, since the start of the pandemic, a well-functioning office space can be attractive.

EXTENSION (5-15%)
The value you can add with an extension depends on which room you’re enlarging. A little extra living space has some value, but you’ll add more to your home’s sale price if you can expand the kitchen and add a utility room.

LOFT OR GARAGE CONVERSION (10-15%)
Converting your garage or loft is a more certain way to add value, if the work is done well. You’ll get the most value from adding an extra bedroom, particularly if there’s space for an en suite bathroom too. A home office or gym can be another great use of this space. Make sure you speak to an architect before carrying out the extension, to avoid wasting money on work that’s not of a high enough standard.

BASEMENT CONVERSION (UP TO 25%)
If you’re lucky enough to have a large basement space with good possibilities for ventilation and natural light, you can add substantial value by converting it into an extra bedroom, extra living room or home office. And, in most cases, you won’t need to apply for planning permission as most types of basement conversion are approved. Of course, as well as adding the most value, this can be one of the more costly projects to take on, so create a thorough budget and seek an expert’s opinion.