As house prices in the UK have risen over the years, an extension is becoming an increasingly popular option for many households. Rather than buying a new property for extra space, you can increase your property’s value by 20% by investing money in an extension. With that said, we have put together a guide to help you get started on planning for your extension.
Loft conversion 'can add 20% to house value'
A recent report from Nationwide Building Society showed that extending a home or adding a loft conversion to properties in London could potentially add up to 20% to the overall house value.
Specifically focused on the London area, the report showed that investing in a home extension or significant loft conversion could increase the property value by 22% - based on average house prices, that would equate to roughly £42,700. Even choosing to add a simple decent-sized bedroom has the potential to add 11% or £22,100.
The chief economist at Nationwide, Robert Gardner, said that home buyers were choosing to opt for usable space instead of moving home, as this is often a better long-term investment.
He said: “Homeowners who add a loft conversion or extension incorporating a double bedroom and a bathroom can add more than 20% to the value of a three-bedroom, one-bathroom house.”
One of the biggest deciding factors of overall financial gain is an increase in floor area. Adding a new bedroom of 13 square metres could add up to 10% of the value of a property, the report showed. This was also reflected by the fact that if a homeowner upgraded from three to four bedrooms, an additional 10% of value could be added for a standard semi-detached London home.
Gardner said: “Location remains key to house values, but other factors such as the size of the property, including the number of bedrooms it offers, are also important to home buyers.
“Home improvements that increase floor area, such as an extension or loft conversion, remain a good way to add value. Ultimately, of course, the decision to invest in the home is an individual one, taking into account the costs and hassle involved, as well as potential benefits.”
The Market Design & Build are one of the leading London based home conversion companies and havesuccessfully completed over 700 projects to date, including roofs, conversions, refurbishments and new builds. With no deposit required and a 10 year guarantee on all work completed, contact us today to arrange a consultation.
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