June 20, 2019
How can home improvements increase the value of your London home?
As a property seller, you’ll want to get the maximum amount you can for your home when selling it. One thing that can make this more achievable is home improvements.
By carrying out home improvements, big or small, you can increase the value of your home before putting it on the market. But which home improvements are best?
All improvements big and small
Recent research revealed that simply giving your home a fresh lick of paint could increase its worth. Adding more than £7,000 (3.1%) to its value.
But its kitchen improvements which will add the most to an asking price. The research found that a kitchen update could add more than £12,000 (5.5%) to the value of a home.
We previously looked at how your kitchen could help to sell your London home. It’s deemed by many buyers to be the most important room in a house. More than any other part of the property, transforming your kitchen could bring the greatest rewards.
The research also highlighted how a new roof could boost a home’s value by more than £7,000 (3.1%). Meanwhile, changes to the bathroom could lead to an uplift of more £5,000 (2.6%) and garden improvements could increase an asking price by more than £3,000 (1.4%).
Bigger, more expensive home improvement projects such as conversions and extensions will cost much more in the short-term, but could lead to the largest returns long-term.
An extra bedroom, for example, could add more than £25,000 (11.2%). A loft conversion or kitchen extension, on the other hand, could add over £23,000 (10.8%). While a basement conversion could see your asking price leap by over £15,000 (6.7%). In addition, a conservatory could add more than £13,000 (6%), while a new bathroom could increase a home’s value by more than £12,000 (5.7%).
Making your insurers aware
While most home improvements, even bigger projects, won’t require planning permission, you will need to make your insurers aware or risk invalidating your policy.
A new report from Defaqto has warned that even minor jobs can hit the value of a property. This is even more the case if a homeowner completes the task themselves and doesn’t tell their insurer.
Almost every home insurance policy obliges the policyholder to tell their insurer about any structural changes to their home. This typically includes loft conversions, extensions and internal remodelling.
But other, smaller works could cause problems. Even if most would not label them as structural changes, it could still cause you bother if you don’t inform your insurer.
These changes could include:
- refitting a bathroom
- removing partitions
- creating new en-suite bathrooms
- partitioning rooms
- installing fitted wardrobes
- installing a fitted kitchen
- turning a garage into a bedroom/room
Defaqto has warned that even smaller changes like this could limit, or possibly even invalidate, your cover if not declared.
Why? Well, insurers base buildings insurance premiums on how much it would cost to rebuild a home if it was completely destroyed.
If you’ve made changes, the cost of rebuilding the house could rise considerably. As such, you need to ensure your insurance would fully cover you.
Which home improvements should you consider?
If you want to get a quick and easy return, creating an en-suite bathroom could be the place to start. According to Bark.com, it costs an average of £2,000 to revamp this space. But it could lead to as much as a £5,000 uplift in the value of your home.
The research also revealed that open fireplaces were a popular investment. For a £1,500 outlay, £3,000 in value could be added to a home.
Installing a modern fitted kitchen – costing on average £5,000 – could see a home rise in value by £10,000. Meanwhile, a loft conversion – setting homeowners back around £20,000 – could add an extra £43,000 to the value of a home.
If you are considering home improvements, shop around for a quote from different companies. The cheapest on offer may not always be the best. Family and friends may be able to provide recommendations for tradespeople they’ve used in the past. Or you can look up reviews online.
It’s clear from the above that home improvements could add a considerable boost to your property’s value. Consequently, it’s something that is definitely worth considering before putting your home on the market.
Even small home improvements could increase your asking price.
For advice on letting, selling, buying or renting a home in London, please get in touch with Atkinson McLeod at one of our many branches across the capital.
To find out how much your home could be worth to let or for sale, why not request a free and instant online valuation today?