Survey by Nationwide building society on how to increase a property value by 20%
In a survey by Nationwide building society found that by adding a bedroom and bathroom via a loft extension could increase a properties value by 20%. They also found that adding another bedroom could at 10% and a bathroom another 5% to the value of an average home.
Robert Gardner, Nationwide’s chief economist, said:
“Following our research feature in 2014, we have re-examined the factors that affect the value of homes, and the potential to add value.
“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 homebuyers. 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 top 4 improvements were
1. More Space
Adding more floor space can add 5% to the value of a typical home. Adding a 3rd bedroom to a 2 bed terraced home coulde add as much as 11% in value.
2. A 2nd bathroom
A 2nd bathroom adds 5% in value
3. Loft conversion
The survey stated “Homeowners that 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.
“Our analysis suggests that, providing the room is usable, adding an extra bedroom can be a good way to increase the value of a property. The table below shows the value added for different property types by increasing floor area to accommodate an extra bedroom.”
4. Energy efficiency
Gardner said: “Aside from extending, other ways of making your home more attractive include making it more energy efficient. Despite the recent fall in global commodity prices, energy costs remain a concern for households and there has been a growing emphasis on environmental sustainability in recent years. Recent data from the Department for Communities and Local Government (DCLG) shows that energy efficiency within the housing stock has continued to improve.”