Home improvements that add the most value to a property

Simple changes can increase the price of your house, but which home improvements offer the best return on investment?

In this article, we’ll break down the rough cost of home improvement and offer you some guidance on where you could add the most value.

What home improvements add value to a house?

When making changes to increase the value of your house, start with the most basic improvements. Look for the easy wins first and work your way up.

So, what are the quickest and cheapest ways to add value?

Declutter your home:
The first step in improving your home isn’t by adding anything to it. In fact, it’s the opposite. Start by taking stock of everything you own and sort your possessions into three piles: keep, donate, and discard.

Although decluttering may not directly increase the value of your home, when it comes to a viewing, people will be more likely to make an offer on a clean house than a messy one. It also makes it easier for potential buyers to envision themselves living in the property.

Fix the basics of your property:
Squeaky floors, peeling paint, black mould, and dim lighting affect your house price. While some of these problems require specialist attention, others may just require a trip to the supermarket and some elbow grease.

Black mould is the most important thing to keep on top of. In severe cases, black mould can negatively affect the value of your property by up to 30%^. This is why we recommend that you keep it at bay and under control by keeping your property well ventilated, and especially in winter, ensuring your home is warm and dry.

Redecorate your home:
Tired wallpaper? Outdated taps? Simple changes like this might not directly add value to your house, but they may leave a positive impression on viewers.

Add kerb appeal to your property:
Kerb appeal is the way your house looks from the outside. A scruffy garden, cracked paint, or a worn-out, weedy path can put off potential buyers before they’ve even had a look inside. Adding kerb appeal can be simple but requires rolling your sleeves up and getting to work:

• Clean the front garden
• Trim the hedges
• Remove any weeds
• Jet wash the driveway

If you don’t have a front garden, hanging baskets with seasonal flowers can add colour and life to the front of your house.

Repaint (and if damaged, replace) any windows, frames and ledges. This can range from a thorough cleaning to more expensive alternatives, such as refitting single-pane windows with double glazing for energy efficiency.

Jet wash your driveway and pathways. Remove dirt and create edging to structure your outdoor space. If possible, remove any bins from view and install feature lighting to highlight architectural features.

(Re)Paint and repair - if necessary - your gate and fence, as fixing your fences can improve the overall look of your property and increase security, both of which increase house value.

What renovation adds the most value?

When renovating your property, there are three points to consider:

The cost of home renovation:
The first point to consider when renovating a property is the cost. How much will it set you back? Work out how much you are willing to spend and what you want to spend it on. Whether you are doing it for your enjoyment or to add value, there are different factors to consider.

The value added to a home from renovation:
How much will this increase your house price?

Added value should be the primary consideration when renovating your home for sale. Although many websites may advise that it can raise your house price as a percentage, it is important to factor in the real-terms added value.

The return on investment of home renovation:
Return on investment is how much value you add compared to the amount you spend (as a percentage).

The table below offers you some insight into the average increase in value on a property worth £250,000, but it is important to remember this is just one example, and results can vary for each property.

Before making any home renovation, you should consider both the cost and the return on investment. Make sure you consider why you want the renovation, and if it is to add value, then try to spend wisely.

Adding a loft conversion:
A loft conversion adds space and value. By converting the loft, you can also potentially create an extra bedroom in the house, which can open you up to a whole new line of people willing to view the property. With that in mind, loft conversions are one of the most time-consuming and costly renovations.

In the table above, although the loft conversion adds the most value to your house, it costs the most. You only increase the value by £40,000 on a house worth £250,000, despite spending £35,000, which is only a 14% return on your renovation investment. If you are adding value to a property before putting it up for sale, you may want to look elsewhere for more cost and time-effective renovations.

Installing a garage:
Off-street parking is highly lucrative in some parts of the country. In others, a garage is an unnecessary addition. In the figures shown above, the £13,000 investment can increase your house price by over £17,500. This can go even higher in places such as London, where off-street parking is sought after.

Building a conservatory:
Once the most popular renovation to homes, conservatories are now less common as people opt for a modern extension. What is the difference, and what option should you go for? A conservatory typically has a glass or polycarbonate roof and walls. This can make it hot in the summer, cold in the winter, and lower your energy efficiency rating. A modern extension has a solid roof and brick walls, and if done well, may not affect your EPC rating as it will be better insulated.

Renovating your kitchen:
Remodelling your kitchen can offer you some of the best possible return on investment for increasing the price of your house. The amount that this can increase the value of your house depends on what you upgrade. Changing cabinet doors may only increase the value of your home by 2 to 3%. A full overhaul of appliances, worktops and tiling may cost more, but it can lead to a better return on investment in the long run.

Upgrading your bathroom:
Remodelling your bathroom is, according to the example above, one of the most cost-effective returns on investment. For an average cost of £6,000, you could potentially add £10,000 to the price of your house. The bathroom remodelling isn’t as time-consuming as either the kitchen or loft conversion, depending on the amount of work done. Some bathrooms only require a new bath, tiling and adding a vanity mirror; others need a complete refurbishment of the entire room.

How much value does a higher energy efficiency rating add to a home?

Poor energy efficiency can negatively affect the value of your home. This is a problem especially prevalent in older houses and listed buildings. To learn more about Energy Performance Certificates and what you can do to change yours, click here.

So, as you can see, it is worth having work done to increase the value of your house before selling it, and this isn’t something that has to break the bank. Investing time in a new lick of paint and replacing your lightbulbs can make all the difference. Before you set off on your home improvement journey, you may want to find out how much your house is worth to begin with.