How to add value to your home
If you love where you live, but hope to one day sell your house for more than you paid, it could be a good idea to think about refurbishing or extending it.
Adding value to your home can improve your quality of life in the short term, and should also increase the sale price of your house when you eventually choose to sell up.
How to add value to your home
The key to adding value to your home is to extend or improve your home without spending too much money.
So, always ask yourself this question: will the value of my house go up by more than the cost of the improvement?
There are many different ways to add value to your home. Some are cheap and easy, like repainting your kitchen units. Others are more complex and expensive, like building an extension.
If you're not planning on moving out any time soon, you should also think about what home improvements would work best for you. An extension might be the best way to increase your house price, but a new kitchen might be the renovation that really makes you happy.
A common way to fund a big home extension is by remortgaging and borrowing more money.
Check the current value of your home
First things first, you need to ask yourself: how much is my house worth today? Use a website like Zoopla or Rightmove to get an estimate of your house's current value. Or get a local estate agent to give you a valuation.
Check the value of other properties on your street
Before you start spending money to increase the value of your home, you should first check the maximum price of houses in your area.
Depending on where you live, there will usually be a "ceiling" on how much properties cost. For example, if a 2 bed flat usually costs £250,000 on your street, it probably is not worth trying to boost the value of your 2 bed flat much beyond £250,000.
You also need to think about who might buy your house in the future. Is your target market families who need more bedrooms, or young professionals who might prefer a big, open-plan living area? This can help you decide which home improvements would work best for your property.
Check if you can get planning permission
Finally, before you embark on a project to add value to your home, you should check to see whether home extensions or remodelling is allowed in your area.
If you live in an old house, check if it's Grade II or Grade I listed house. If you live in a historically interesting or very attractive part of the country, check if you're in a Conservation Area, Area of Outstanding Natural Beauty, National Park, or World Heritage Site. You may be limited in the type of work you can do, and the application process might be more difficult. If you live in a flat, you will almost certainly have to apply for planning permission with your local council before you can do any work.
If you have a detached or semi detached house, you may be able to build a small rear, side, or attic extension without planning permission, but larger extensions will still require planning permission from your local planning authority (LPA).
Either way, if you go ahead with your extension after a refusal and the council finds out, you will be served an “enforcement notice” ordering you to reverse any changes you made immediately. You can appeal the LPA’s decision, but it can be a long and arduous process.
How long does planning permission take?
Generally, applying for and getting planning permission for an extension should take no longer than 8 weeks.
What improvements will add the most value to my home?
Adding extra rooms, like a loft or basement conversion, or a large rear or side conversion, is usually the best way to add value to your home.
It's impossible to give you the exact cost of building an extension, but here's a rough estimate.
For a single storey, 100 square foot (about 9 square meters) extension on the back of your house, expect to spend between £10,000 and £20,000.
A simple conservatory will be at the cheaper end, while a fancy kitchen would be more expensive. And the building work will usually cost more in big cities like London.
You can fund an extension through savings, or you could remortgage and borrow more money if you have equity in your home.
How much value does a new kitchen add?
On average, a new kitchen can add around 6% to the value of your home.
It really depends on two things, though:
How bad is your kitchen currently?
How much are you planning to spend on that new kitchen?
A bad kitchen is one of the biggest turnoffs for prospective buyers. But you also don't want to spend £20,000 on a new kitchen if it will only add £10,000 to your home's value.
How much value does an extension add?
For a 3 bed house, an extension can add up to 23% to your property value, according to research by Nationwide.
In general, to work out how much value an extension will add, look at the price per square foot for properties in your area. In London, where house prices are £500 per square foot or more, adding a 100 square foot extension could add £50,000 to the value of your home.
But as we mentioned earlier, beware of exceeding the price ceiling on your street.
How much value does a new kitchen add?
On average, a new kitchen can add around 6% to the value of your home.
It really depends on two things, though:
How bad is your kitchen currently?
How much are you planning to spend on that new kitchen?
A bad kitchen is one of the biggest turnoffs for prospective buyers. But you also don't want to spend £20,000 on a new kitchen if it will only add £10,000 to your home's value.
How much value does an extension add?
For a 3 bed house, an extension can add up to 23% to your property value, according to research by Nationwide.
In general, to work out how much value an extension will add, look at the price per square foot for properties in your area. In London, where house prices are £500 per square foot or more, adding a 100 square foot extension could add £50,000 to the value of your home.
But as we mentioned earlier, beware of exceeding the price ceiling on your street.
How can I increase the value of my home on a budget?
If extending your property or putting in a new kitchen is beyond your means, there are still a number of things you can do to increase the value of your home.
Plus, most of these ideas will make your house nicer to live in while you're there, too. Win win!
1. Makeover your kitchen and bathrooms
The kitchen is often considered the heart of the home. Potential home buyers make a beeline for this room when they first view a property, so make sure your kitchen looks clean and up to date.
Small changes make a big difference: replacing the kitchen sink and taps, changing cabinet doors and handles, updating old appliances, or installing spotlights can really lift the room.
The same goes for your bathroom. A tired looking bathroom with old grouting and a leaky tap can be very off-putting to future buyers, not to mention guests!
You don’t necessarily have to change the whole bathroom suite; a new toilet seat, taps, or glass shower screen may be all you need. Having a glass screen instead of a shower curtain can open out a small space and make it appear larger.
2. Remodel the inside
Even if you can’t extend your property, you can change the internal layout (although you may still have to check with your local planning authority for more extensive changes).
Knocking down walls, for example to create an open plan living area, could add a lot of value to your home.
Just remember to check if the wall you want to remove is load bearing or not first! You should engage an architect or structural engineer if you aren’t sure - knocking down a load bearing wall without proper measures in place could quite literally make your house fall down.
Other options include fitting added storage into alcoves and other awkward spaces that would otherwise go unused. Many buyers see fitted storage as a real plus, especially in city flats where space is at a premium.
Or simply invest in a professional carpet clean, which is relatively inexpensive, but can give a room a huge facelift especially if your rugs are in good shape and a neutral shade.
3. Up the kerb appeal
A new door lock, or better yet, a whole new front door can make your property much more appealing. The same goes for windows. Most buyers want a property that is already fully double glazed because replacing windows is expensive.
Additionally, putting in double glazing could massively improve your daily life by keeping noise out and keeping heat in…which means lower heating bills to boot.
In fact, savvy buyers will often check the Energy Performance Certificate (EPC) rating before they buy, so if you can get yours from an E to an A with better windows, it will give your property’s value a welcome boost.
If you cannot afford new windows, you could sand and repaint wooden frames and be sure to properly seal any gaps.
Although it sounds obvious, a nicely mowed lawn, a few well-placed shrubs and a swept driveway will also make a great first impression.
If you do not have a green thumb, consider planting low maintenance, evergreen shrubs to spruce up your outdoor space.
4. Convert your cellar, loft or garage into living space
Finally, creating an extra living space from your cellar, loft or garage can be a great benefit, particularly when space is at a premium. This isn't the cheapest way of increasing the value of your home but, done right, it could increase your home's value by between 15% and 30%.
Property expert Phil Spencer puts the average cost at between £20,000 and £40,000, but says it’s still the best way to add value to your house price.
With a 30% boost adding £90,000 to a £300,000 property, that sounds like good advice!