Amplifying your home’s value

As we grappled with the pandemic, a new housing trend emerged – the ‘quest for space’. This trend saw many UK homeowners re-evaluating their living conditions under lockdown and opting for larger residences, typically with larger outdoor spaces. While some of these trends may have slightly reversed post-pandemic, according to analysis from Nationwide, the ‘quest for space’ remains crucial if you consider enhancing your home instead of relocating. It’s no secret that a property’s location significantly impacts its value. However, other elements like the size of the house (including the number of bedrooms) also hold considerable importance to potential buyers.

VALUE OF SPACE AND HOME IMPROVEMENTS

Home improvements that expand the floor area, such as extensions or loft conversions, continue to offer an attractive way to increase a property’s value. According to Nationwide’s last coverage in 2016, the value added by these improvements has grown.

Investing in home improvements is a personal decision, factoring in the costs, potential inconvenience and expected benefits. For some households, it’s a toss-up between moving or enhancing their current home. Amongst owners contemplating a move, acquiring a larger house or flat is the most common reason.

THERE IS WORTH IN ADDITIONAL SPACE

More usable space is generally associated with better-quality accommodation, and people seem willing to pay for it. According to the analysis, a 10% increase in floor space, all else being equal, can boost the price of a typical house by 5%[1]. Adding space to create an additional double bedroom can increase the value of an existing two-bedroom house by around 14%.

Second bathrooms remain popular amongst homeowners, with research showing that an extra bathroom can add 6% to the average house’s value. Homeowners who add a loft conversion or extension, incorporating a large double bedroom and bathroom, can add up to 25% to the value of a three-bedroom, one-bathroom house. This is an increase from 22% in the 2016 research.

IS EXTRA SPACE A LUXURY OR A NECESSITY?

Before contacting their local builders, homeowners often ask themselves, ‘Do we genuinely need the extra space?’ English Housing Survey data reveals that 87% of owner-occupied properties have at least one spare bedroom, with more than half (53%) classified as ‘under-occupiers’, defined as having two or more spare bedrooms.

However, the rise in remote working means that these spare rooms will likely be used as home offices or studies. Moreover, many homeowners purchase properties they intend to grow into over time as their families expand and, more significantly, people remain in their homes even after their children leave.

ENERGY EFFICIENCY, A VALUE-BOOSTER

Besides extensions, making your home more energy-efficient can also enhance its appeal. With cost of living pressures, energy expenses remain a concern for households. Furthermore, transforming and decarbonising the UK housing stock is crucial for the UK to achieve its 2050 emissions targets, given that housing accounts for approximately 20% of the UK’s total carbon emissions.

Over the past decade, energy efficiency has improved dramatically due to the higher energy rating of new properties and the improvements made to many existing homes. The latest data from the English Housing Survey shows that 47% of the housing stock now holds a ‘C’ or higher energy rating, up from 16% in 2011.

Don’t forget, our professional friendly advisors are on hand to support you and can help you explore all of your options.

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