Home extension or loft conversion 'can add 20% to house value'
Extending your home or adding a loft conversion can add more than £42,000 to the value of an average property, while an extra bathroom could boost its worth by nearly £10,000, a report has found.
Based on average house prices, Nationwide Building Society calculated that an extra bathroom could add 4.9% or £9,600 on to the value of a home in the UK, while increasing the floor area by 10% could add another £10,000, or 5.1%, on to its worth. A home extension or loft conversion could increase a property’s worth by about 22%, or £42,700. Meanwhile, adding a decent-sized extra bedroom has the potential to boost the value of a home by 11%, or £22,100.Robert Gardner, chief economist at Nationwide, said home buyers were prepared to pay more for extra usable space, as this was often associated with better quality accommodation. 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. ”Increasing the floor area to add an additional bedroom of 13 square metres could add 10% to the value of a terraced house or 13% to a semi-detached home, when upgrading from two bedrooms to three, according to Nationwide’s analysis. If a homeowner were upgrading from three bedrooms to four, this could add 10% to the value of a terraced home, 9% to a semi-detached home and 9% to a detached home, it said.
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.” For those who do not relish the prospect of building work, Gardner suggested that another way to potentially make a property more attractive was to make it energy efficient, for example through better insulation and double glazing.
( See original article - https://www.theguardian.com/money/2016/mar/27/home-extension-or-loft-conversion-can-add-20-to-house-value )