You are here: Home - Household Bills - How to -

The improvements that will add value to your home…and those that won’t

Written by:
Two in five Brits are planning home improvements this year, a new study shows. But those looking to add value to their property may be left disappointed.

Redecoration is by far the most popular change, with one in four people planning new carpets this year and one in five installing a new kitchen.

When it comes to cost, a third of Brits will spend £500 or less, a fifth will spend between £500 and £1,000 and a quarter between £1,000 and £5,000.

One in four plans to part with more than £5,000, according to research by Hargreaves Lansdown.

However, making home improvements for financial reasons alone won’t always pay off.

Sarah Coles, personal finance analyst at Hargreaves Lansdown, said: “Unfortunately ‘improving’ your home doesn’t always pay. There’s a risk that changes like a new kitchen or laying carpets actually cost you more than you add to the value of your property.

“If you end up borrowing to pay for the work, even improvements that typically pay off – like a loft conversions or home extension – could leave you worse off.”

A new kitchen, for example, will typically cost around £10,000 but only add 2% or £4,000 to a £200,000 home, according to the research.

Meanwhile, a new bathroom will set you back around £4,000 but only add £2,000 to a property worth £200,000.

Some improvements, however, are more worthwhile doing if you’re after a financial gain.

An extension, for instance, which typically costs around £30,000 would add £40,000 to a £200,000 home, while a £20,000 loft conversion would add £24,000 to the property value.

The worst home improvements for your money

  Value added

(£200k home)

Cost (estimated typical cost)
New kitchen 2% (£4,000) £10,000
Solar panels None £5,000
New bathroom 1% (£2,000) £4,000
New carpets None £4,000

The best home improvements for your money

  Value added

(£200k home)

Cost (estimated typical cost)
Extension 20% (£40,000) £30,000
Loft conversion 12% (£24,000) £20,000
Double glazing 4% (£8,000) £7,000
Conservatory 4% (£8,000) £5,000
Knocking through 2% (£4,000) £3,500
New boiler or central heating 4%  (£8,000) £2,000 (boiler)

Source: Hargreaves Lansdown

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week