- Adding extra space by going up or out continues to be the best way to increase the value of a home
- Top home improvement is a loft conversion which could increase its value by over 12% (£22,898)*
- More cosmetic improvements such as decking, flooring or decorating considered less effective in increasing value
"The current housing market means that more people are looking to improve their home rather than move. However, before embarking on any improvements, it pays to know which ones will add the most value to your property. Region, type of property and location are all factors which will determine which improvement is best for a particular property, with the creation of extra living space continuing to be the best value improvement."
Gerry Bell, Head of Mortgage Marketing, GE Money Home Lending
With the softening of UK property prices, more consumers are potentially looking to carry out home improvements rather than move house and analysis by GE Money Home Lending reveals how much certain improvements can add to the value of your property.
Based on research** with 110 estate agents across the country and current residential property prices, GE Money has calculated that the best way to add value to your home is to add additional living space in the form of a loft extension, an extension or a conservatory.
The research found on average a loft conversion would potentially add £22,898 to the price of a property, whilst building an extension could increase the value by approximately £19,800. Adding a conservatory, the third best way to add value to your home, could increase its value by around £12,229. These three improvements combined could add £54,922 to the value of a typical home.
When it comes to other less costly and dramatic improvements -- such as installing a new bathroom suite, redecorating or laying a patio, there are still good returns but they are naturally lower. The research also found that whilst we may be striving for an eco-friendly environment, estate agents still do not see energy saving improvements such as installing solar panels as generating hot profits, adding just £1,500 to the value of a home.
On a regional basis householders in the Yorkshire and Humber regions could add the greatest value to their house price by completing a loft conversion, adding an extension for an extra room or installing a conservatory.
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Corporate Communications
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