Two prominent UK banks are forecasting that average house prices could fall by 8% in 2023. Of course, certain areas may fare better or worse than others depending on local market forces. Yet existing homeowners are still keen to retain – and grow – the value of their property, at least over the long term. Not only can this raise your quality of living, but it can help you sell at a higher profit in the future (e.g. if you move house). Below, our Carlisle financial planners here at Vesta offer some ideas to help raise the value of your UK property.
#1 Bathroom renovation
Renovating a bathroom can offer many advantages, such as maximising space and improving usability and functionality. This room can suffer disproportionately from wear and tear (e.g. due to moisture from showering) and may suffer from safety issues if it becomes outdated. Mould and mildew can build up over time, and functionality may be an issue depending on your prospective future buyer. For instance, if you plan to aim your property sale at a young family, then a bathtub will likely be important. The average cost of installing a new bathroom in the UK is £6,500, but the renovation could add between 4-5% to the value of your property. So, if your property is currently worth around £350,000 and you spend £5,000 on a bathroom renovation (i.e. about 1.4% of the value), then your future “return” on the investment could be about £12,000.
#2 Kitchen renovation
A kitchen can easily enter bad shape and deteriorate – e.g. cracked tiles, peeling countertops, outdated appliances and broken cabinet doors. Investing in a kitchen renovation can boost the function, flow and aesthetics of your home, making it more pleasurable to spend time in (and more attractive to future buyers). Renovating a kitchen can cost more than a bathroom, with costs ranging from £5,700 – £17,100. A successful project could, however, add up to 10% to your property value. To take the example of a £350,000 property once more, this could add around £35,000 to the property value (i.e. a potential “return” of £13,000 – £29,300).
#3 Off-street parking
Depending on the nature of your property and where you live in the country, adding accessible parking could increase the value of the property by up to 13%. Moreover, if you do not plan on using the space yourself, then you could rent it out for £200 per month (perhaps more). Adding a garage, alternatively, could increase your property value by 11.1% (or 20.4% for a double garage). However, be careful to check whether your property’s current value is already close to the “price ceiling” in the local area. If so, then adding a parking space may not offer a strong return on your investment.
#4 Energy efficiency
The cost of living crisis in the UK since 2022 has drawn attention to the detrimental effects of high energy bills on household finances. Building an energy-efficient home could not only save your own costs in the short-medium term, but add value to prospective buyers if you eventually decide to sell. Ideas could include installing double-glazed windows, insulating the loft, or adding solar panels. If your home currently has an EPC rating of “G” and you move it up to an A or B rating, then this could add up to 14% to your property’s value. Yet energy improvements can be costly. The average cost to move a large semi-detached home from a D to a C rating is around £12,540. As such, these projects need to be planned very carefully.
#5 Loft conversion
Many homeowners have under-used space sitting right above their heads (in the loft). Here, a great many properties have added value by converting a loft into another bedroom or living space. This could add between 10–20% to the value of a property, but it can be a significant task for homeowners – especially if they have not embarked on a project of this scale before. Your budget may range from £20,000–£40,000 depending on the work you have in mind. You could also explore adding another room via “rear extension”, rather than via the loft.
For homes in the North East and West, for instance, this could add £23,955 to the value of a home. Bear in mind that this option may require planning permission, but a loft extension will likely fall within your permitted development rights. Another option, of course, is to build a conservatory (which could add up to 7% to the value of your home). The build cost, however, can range from £8,000 to £30,000. Again, you will need to plan carefully to make sure you achieve a good return on investment if you go down this route.
Invitation
If you would like to discuss your financial plan and retirement strategy, then we would love to hear from you. Get in touch with your Financial Planner here at Vesta Wealth in Cumbria, Teesside and across the North of England.
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This content is for information purposes only. It should not be taken as financial or investment advice. To receive personalised, regulated financial advice regarding your affairs please consult your Financial Planner here at Vesta Wealth in Cumbria, Teesside and across the North of England.