Friday, 21 November 2014

Which home improvements yield best return on investment ?





I was doing some research the other day to see if home improvements adds value and which improvements add the most value, what I found is that the average home improvement in the UK actually increases the value of a home by 10%, not to bad I don’t think! Now this works out as just shy of £30k whilst the average return on investment was estimated to be 80% this is based on the total amount spend by home owners, the data to get these figures was provided by the new home improvement index from peer to peer lending firm Zopa.

So this new research basically asks home owners who have taken out a home improvement loan across the UK how much value the actual renovation added to their property, this in turn showed that the top improvement is a conservatory which on average cost is shy of £5500 and giving a 108% ROI.

Following the conservatory with a ROI of 88% is garden improvements which on average cost around £4,500. Exterior work costs come in on average of about £6000 which is a ROI of 75%.

Now an extension cost averages in at around £19,750 which is much more costly and gives a return of around 71% while a new roof would cost just over £4K and give a return of 63%. A loft conversion comes at a large average price of £24,600 only giving you 50% return on investment.

The rooms homeowners tend to want to change the most are the kitchens and bathrooms yet they offer the least in terms of return. Surprisingly improving the kitchen which on average costs £9,600 comes in with a slightly higher return at 49% than a bathroom which is at the bottom of the returns averages at £4,900 and brings in a return of 48%.

82% of home owners said that regardless of improving their homes, they were not planning on selling any time soon. The firm says this suggests that the current housing market where price growth is slowing could be putting home owners off moving, hence why they are adapting their homes to their situations.

If you have any questions at all, please give me a call, or pop me an e-mail over to tpatel@hamlethomesproperty.co.uk