Maximising property value: Top home improvements that pay off

You don’t need to be Kirstie Allsopp or Phil Spencer to know that moving house is an expensive business! So much so, it seems that more and more of us are choosing to improve our homes rather than go through a house move at all.

Whether you’re planning to sell your home now, want to increase its value for the future or you just want your existing space to work better, read our guide to the most impactful home improvements – and how to finance them.

Four things to factor in before starting a renovation

Let’s be clear – not all home improvements boost your property value but investing in the right projects will increase your chances. Try to focus on key projects that not only enhance your living space but also help maximise your home’s market value when the time comes.

Local market trends: Before starting any renovation, research what types of improvements are most sought after where you live. Some examples of improvements are given below.
Budget and costs: Set a clear budget for the project, factoring in a contingency for unexpected costs. This can help avoid the unfortunate situation of spending more on renovations than you can expect to recoup when you sell or not having enough funds to complete the project.
Planning permissions: Check whether any of your renovation plans require planning permission.
Timing: Costs and convenience of building work can change depending on the time of year you want it carried out. Think carefully about the most cost-effective time of year for your renovation works.

So which projects will have the desired effect and improve your home for you – or for someone new in future? Read our top home improvements that increase property value.

Renovate your kitchen: Traditionally the heart of the home, the kitchen is often the one most scrutinised by potential buyers. A modern, functional and bright kitchen can be a major selling point – and make life easier for you too.
Focus on:
- Updating cabinets with modern hardware
- Upgrading counter tops to long-lasting materials like granite or quartz
- Improving light fixtures to create a more airy, bright and welcoming atmosphere
- Installing energy-efficient appliances
Potential Return On Investment (ROI): A middle of the range kitchen remodel can yield a return on your investment of around 10%.

Remodel your bathroom: Another key area that can make or break a home sale. Upgrading your bathroom can significantly increase your home’s value – whether it’s a simple refresh or a full renovation.
Focus on:
- Installing new tiles or resurfacing old ones to freshen up the look
- Add a vanity unit with lots of storage space
- Replace outdated fixtures with modern, water-saving options
Potential ROI: For a brand new bathroom you could expect an ROI of up to 5%.

Add or convert space: Increasing your home’s square footage either by building an extension or converting existing space like the attic or cellar is one of the most effective ways to add value to your home.
Popular projects:
- Loft conversion: Turning an unused loft into a bedroom or home office
- Cellar conversion: Creating an extra living area or rental unit
- Garage conversion: Transforming a garage into a living space
Potential ROI: In areas where extra living space is highly sought after, these kinds of conversions can offer an ROI of up to 16%.

Improve energy efficiency: With more and more of us doing what we can to protect our environment, energy-efficient homes are highly desirable. As well as lowering utility bills, becoming more energy-efficient can make your home more attractive to buyers.
Focus on:
- Insulating the roof, walls and floors to minimise energy loss
- Adding solar panels or energy-efficient heating systems
- Installing double or triple glazed windows to improve insulation
Potential ROI: In regions with high energy costs expect an ROI of up to 8%.

Boost your curb appeal: Curb appeal can have a significant impact on your home’s perceived value and simple changes can go a long way towards making your property more inviting. Remember – first impressions count!
Focus on:
- Replacing or updating the front door
- Repainting the exterior of your home in a modern, neutral colour
- Installing or improving landscaping, for example making sure your garden is well-maintained, or adding pathway lighting
Potential ROI: Depending on the scope of the work, improving your curb appeal could lead to an ROI of around 10%. The vast majority of us pass judgement on a property based purely on how it looks from the outside.

Funding your home improvements

It’s all too easy to get over excited about the value home improvements can potentially bring but don’t forget, you must pay for those improvements to begin with and that often requires a pretty hefty upfront investment.

Here are a few financing options that could be used to fund your renovations:

Personal loans. These are unsecured or secured loans to be used to fund your renovations and home improvements. They typically offer fixed interest rates and repayment terms which makes it easier to budget.
Remortaging. Releasing equity by remortgaging will provide you with a lump sum to invest in your home improvements but it increases the total amount you owe on your mortgage – and therefore the amount of interest you’ll pay.
Sustainable finance or ‘Green’ loans. Some lenders offer low-interest loans for energy efficient home improvements, such as solar panel installation or heating system upgrades.

Is it worth it?

Investing in the right home improvements can both enhance your living space and add to your property’s market value so it’s important to choose your renovation projects carefully. The most important thing is, however you plan to fund the improvements, meticulous planning and research are vital to a successful build. Focussing on high-ROI projects can help maximise your investment, ensuring you benefit from an increase in your property value when the time is right to sell.

Sources:

ROI statistics: Zoopla
Also Royal Institution of Chartered Surveyors (RICS),moneysupermarket.com, chekatrade, thepropertycentre.com, gov.gg and marshalls.co.uk.