Spending money on your home can help you create a practical, beautiful space for your family. With more time spent indoors over the pandemic, it’s no surprise that home upgrades are at the top of many homeowners’ agendas. As well as creating a home you love, the right renovations could boost your property’s value.
House prices have been soaring in the last year. According to Halifax, in the year to August 2021, house prices increased by 7.1%. The average price of a home in the UK is now £262,954. The value of your home is likely to have increased even if you’ve spent little on it. But if you want to give it a boost, some projects could help it increase even further.
To identify the changes that can improve property value as well as your day-to-day life, Royal London asked homeowners how much more they would offer on their next home if their property has certain home improvements.
So, which home improvements were found most likely to deliver a value boost? Here are the top five.
1. Modern kitchen
The kitchen is the hub of the home for many families. So, it’s not surprising that a modern kitchen is the renovation most likely to boost the value of a home. The research found potential buyers would pay £11,159 more for a home that had a newly installed kitchen. It’s also the project homebuyers are most likely to take on themselves. Nearly half (48%) of homeowners invest in a new kitchen within the first 24 months of ownership. While a new kitchen can be expensive, it could pay for itself when you look at the return.
2. Modern bathroom
Coming just behind a new kitchen is a modern bathroom. Around 4 in 10 new homeowners undertake this project within two years of moving in. Properties that already have a new bathroom could benefit from a £10,915 value boost as a result. Alongside a kitchen, a new bathroom is one of the most expensive projects that homeowners take on. However, the findings show you can make a profit from the investment.
3. Loft conversion
The research suggests homeowners want to get as much liveable space out of their property as possible. Converting the loft is one solution that could help families create a home office, additional bedrooms, or simply somewhere to relax. While a loft conversion can be costly and disruptive, it could mean the value of your home increases by more than £10,000.
4. Spare bedroom
Much like a loft conversion, having a spare room can make your property is attractive to families. Whether they want to create a home office as working from home becomes the norm or have a growing family, an additional bedroom can make all the difference when you put your home on the market. The research suggested it could increase the value of your home by £10,744.
5. New boiler/heating system
No one wants to move into a new home and find that they need to replace the heating system or have it break down in the middle of winter. If you’re looking for a way to add value to your home, investing in a new system can give potential buyers confidence. It could increase the value by £9,647.
While it can be tempting to take on projects to increase the value of your home, unless you plan to sell, remember you’ll need to live with the changes too. Renovating your home can have a positive impact on your day-to-day life and create a space that makes sense for your family.
The most influential factor for renovating is “the need for more space for myself or partner”. Other popular reasons included needing more space for children or pets, creating a home-working area, and wanting to hold more social events at home. Some people were also encouraged to take on a project after seeing upgrades that family or neighbours had made to their home.
Could your mortgage help you improve your home?
If you’re keen to undertake some home improvements of your own, a new mortgage could help you access the capital you need to fund it.
Depending on your circumstances, you may be able to borrow more against your home. It’s a step that can provide you with a cash boost to turn plans into a reality. However, keep in mind will mean that the amount you owe on your mortgage will increase, so your repayments or term will rise. If it means you move into a higher LTV (loan-to-value) bracket, it could mean you will need to pay a higher rate of interest too. It’s a decision you should carefully weigh up first.
If you’re thinking about remortgaging your home, please contact us. We can help you find a mortgage deal that’s right for you and offers a competitive interest rate.
Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.