How to increase the value of your property
In an ideal world, your home will increase in value over time. House prices in the UK tend to fare well, but that doesn’t mean you should take it as a given that your house will naturally increase in value. If you want to take actions into your own hands, there are changes you can make around the home that can boost its worth. Here, we’ve put together a list of ways you can help grow the value of your home, from small increases to raising the price by thousands.
Does property value increase yearly?
Over time, house prices in the UK have grown. In the past 20 years, the average value of a home has increased by 207% according to research from Halifax. That works out at just over 10% each year.
Property is considered a safe bet because house prices tend to generally go one way: up. But that doesn’t mean you should assume your home will automatically grow in value. The speed at which house values have increased over the last two decades is impressive, but the market was starting to slow before the pandemic.
Uncertainty over Brexit left many feeling cautious about moving home between 2016 and 2020. It was only when the stamp duty holiday was introduced that the market hit full speed, with some areas of the UK seeing price rises of almost 20%.
Unforeseeable factors, such as major political events, recessions and global pandemics can affect the property market, both positively and negatively. Therefore, you shouldn’t take it as a given that your property will increase in value over time.
How do home improvements increase property value?
One way to take control over the value of your property is to give it some love with home improvements. The average home improvement can add as much as 10% to the value of your home.
If you go as far as building a conversion, you could potentially increase it by much more. Home improvements make a property better, whether it’s a new, modern kitchen or adding a loft extension.
It’s more common to see home improvements in the residential sector, as house owners improve their property and living standards. However, improving a buy-to-let property also has its benefits and works much in the same way as a residential home in terms of value.
What adds value to a home?
Additions that enhance a property are likely to add value to it. How much the value increases largely depends on the work undertaken. Low-cost maintenance, such as painting the walls and adding to the curb appeal with strategically placed plants and outdoor lights. These inclusions might not add tens and thousands of pounds to the value, but they help with incremental rises.
For mid-level price rises, you can make aesthetic changes within the home, including replacing doors, changing the flooring, insulating the property or kitchen and bathroom renovations. These types of changes have the potential to increase property value by a few thousand pounds.
Lastly, there are high-level improvements. These often come in the form of adding an extension to a property, increasing the number of bedrooms and renovating the attic or basement.
Extra value add by room
Adding an extra bedroom to your home can increase its value by around 10%, which is £30,000 on a property valued at £30,000. You should always consider house size and if creating an extra bedroom is feasible. Otherwise, it could make the property harder to sell if it’s got two bedrooms but reduced space in other areas.
Open plan living is becoming increasingly popular in the UK, and a single-storey extension for the kitchen/living room could see the home’s value rise by between 5% and 8%. A double story extension can increase the value by 12%.
Additional bathrooms can be handy, especially when added as an en-suite. Research has found that an extra bathroom can increase the value of a property by around 5%. So if your place is worth £250,000, an extra bathroom can increase its value to £262,500.
Renovating the kitchen can give it a fresh and modern feel while also increasing the value of the property. According to the Royal Institution of Chartered Surveyors (RICS), a new kitchen can add around 4% to the home’s value, which averages out to £5,000 extra.
Adding value if you own a buy-to-let property
A buy-to-let property serves two purposes: passive income through monthly rental payments and capital appreciation as it grows in value over time. The second one is particularly intriguing, as it’s not something you see happen in real time.
For a landlord, renovation and redecorating can be a smart move to boost the value. It also increases the property’s appeal to tenants, as they’ll be more inclined to move into a fresh home with modern features. So not only can you potentially increase the value of the property, but you could also see a boost in the rent it fetches.
Final words: On the rise
There are numerous ways to add value to a property, from minor tweaks like giving the walls a refresh to major advancements such as adding an extension. Of course, there’s also every chance your property will increase in value naturally if it’s in an area with potential for growth. All of these factors combined give landlords