How can I increase the value of my home? That’s likely to be a question you’re asking yourself on a regular basis, but even more so if you’re considering listing your home for sale now or in the short-term future.
Even if you have no immediate plans to sell your home anytime soon, it’s still useful to know how you can go about increasing the value of your property – that way, if you ever come to sell at a later date, the asking price you can set for your home is likely to be much higher.
But what is most likely to improve a home’s value? Well, according to Post Office Money, it’s home improvements.
In its latest research, it found that homeowners who take steps to improve their properties are seeing them enter the market at a significantly higher value than other similar homes.
A 20% uplift
Home improvements can have a drastic impact on the value of a home, the research argued. Based upon the median asking price of a three-bed semi-detached property in the UK (currently standing at £286,000), Post Office Money’s findings showed that homes with improvements such as garden landscaping, a new kitchen, an extension or a walk-in wardrobe were on the market for more than 19% that of the local median asking price.
And making home improvements is a rising trend. Some 64% of homeowners have enhanced their homes over the last five years, spending £295 billion overall, equating to an average of more than £14,000 each.
It’s estimated that those who have made changes to their home increased the value of their property by some £40,000, up from an average of £210,000 before the improvements to £250,000 afterwards. This equates to an average increase of about 19%.
What are the most common home improvements?
The research found that a new kitchen was the most common home improvement, with a quarter of improvers (25%) choosing this room to focus on. It’s a shrewd move when you consider the kitchen is now considered by many to be the most important room in a home, whether for cooks embracing their inner Jamie Oliver or bakers recreating what they’ve seen on the Great British Bake Off.
As well as a place to cook and eat, the kitchen can also act as the main hub of a home – a social space for all the family and a place to hold informal gatherings or dinner parties.
Next up in the top five list of the most common home improvements was garden landscaping (18%), closely followed by a new shed (16%), decking/patio (14%) and a driveway (12%). Interestingly, four of the top five are improvements made outside the home itself, strongly suggesting that it’s not just the inside of a home that counts when trying to sell it.
Very often, a home’s ‘kerb appeal’ – what buyers see from the outside as they approach the property – can help to make or break a deal.
Green space is equally important, especially when it comes to family and older buyers, who are perhaps more likely to appreciate a garden.
Luckily, landscaping or improving your garden doesn’t take much time or effort, while a new shed is fairly easy and cost-effective to install as far as major home improvements go.
Decking or patio, too, can add a touch of class and elegance to a garden, as well as providing a great place to sit and enjoy a glass of wine or Pimms in the summer.
Driveways, meanwhile, are an excellent way of improving your home’s value in a relatively quick, low-cost manner. Costs vary depending on what type of driveway you want, but they can cost from as little as £1,500-£2,000 and be completed within a week or so.
In almost all cases, too, you won’t need planning permission for a driveway – although, depending on the road you live on, you may have to pay the council to drop the kerb.
You can also opt for a number of different styles – from gravel or tarmac to concrete or blocks and bricks – but remember to make sure it fits with the look and feel of the rest of your home. One thing you can be sure is that buyers will appreciate the guaranteed parking space, which is likely to be a key consideration for many who are viewing your home.
Which home improvements increase the value of a home the most?
The home improvements that tend to improve the value of a home by the greatest percentage were revealed to be garden landscaping, gyms and extensions. However, only garden landscaping could be counted as an affordable home improvement. Luckily, it also provides the biggest increase in average market price.
For an estimated improvement cost of just £2,750, it increases the value of a property by 77%. Sizeable uplifts are also seen for gyms and extensions (44% and 37% respectively), but these home improvements come with much higher costs attached. A state-of-the-art home gym could set you back as much as £10,000, while an extension could cost as much as £80,000.
Even then, this higher level of investment is likely to bring rewards in terms of being able to set a higher average asking price as your home soars in value.
The rest of the top 10 home improvements most likely to lead to an increase in value was completed by a walk-in wardrobe, jacuzzi/hot tub, new kitchen, swimming pool, basement conversion, conservatory and driveway.
As well as adding value to your home, it’s also important to be aware of the features that can devalue a home and impact on the asking price you can set.
If you are looking to list your market soon, or at some point in the future, carrying out some of the home improvements above could both improve your home’s value and your chances of selling.
For more information on selling a property in North London, East London, Hertfordshire, Essex and the surrounding areas, contact your local Kings Group branch today.
If you’re eager to see how much your property could be worth on the current market, you can request a free instant online valuation here.