The vast majority of home owners in the UK think their house value has increased since they bought it by an average of £33,125, new research has found.
Overall some 91% believe the price of their home has gone up and the research found that they think that renovations and decoration has led to an average £14,900 increase in the property’s value.
The research from Co-op Insurance also found that 31% of homeowners bought their property with their eye firmly on how much money they could make from their investment.
Of these, a reliance on house prices increasing generally was the outcome that 62% of home owners were hoping would happen.
Location was also a key deciding factor with 34% buying in an already desirable area whilst 32% of people did their research and sought out properties in areas classed as ‘up and coming’. Whilst 29% bought a home in clear need of renovation.
Changing rooms is a common theme, with 76% of home owners in the UK making changes to their property since they moved in. Of these, 60% believe the renovation works they’ve completed has led to an increase in value. On average, the renovation and decorative work that home owners have invested in came to £18,224. This means that, on average, home owners are seeing a £14,900 profit as a result of these works.
Home owners in London have seen the biggest average rise in profit thanks to renovation and decorative works with 94% believing their property has increased in value by £21,499.
However in Northern Ireland, despite 78% of people thinking their value has increased, it doesn’t look to be down to décor or renovation work, with an average loss of £205 being recorded when you compare spend on renovations versus potential value increases.
Kitchen is king when it comes to the rooms home owners should renovate if they are looking to entice new buyers, with 56% believing it is this room that really sells a home. For a quarter of buyers, the living room is the second most desirable selling feature of a home. Bathrooms, whilst third on the list when it comes to saleability, are only important to 4% of home buyers according to the research.
Some 76% of home owners have made changes to their homes since they bought them with décor being the most popular choice with 73% opting to improve their home’s decoration while 67% want to get a new kitchen and 65% a new bathroom.
‘Our study shows that home owners believe by investing in décor and bigger renovation works they are adding value to their homes for future years,’ said Caroline Hunter, head of Home Insurance at Co-op.
‘Kitchens have long been lauded as the heart of the home and our study continues to solidify this, with over half of home owners believing that this is the room of the house that could make, or break, a sale,’ she pointed out.
‘Whilst they are a big draw for prospective buyers, they can be expensive, therefore it’s important to revisit your home insurance policy to ensure you have the right level of cover in place during the building works, to protect you from additional risks during the work. Don’t assume your builder will have insurance in place that covers you in every eventuality,’ she added.
However, a separate piece of research has found that one in five have made a change to their home they later regretted and 29% are too scared to change something in their home in case they make the wrong decision.
And more than one in 10 have regretted a disastrous design decision so much that they have spent more money making further changes to cover-up their mistake, according to the research from DigitalBridge.