How to add value: The Architectural changes that will boost your home’s resale value
There is no doubt about it; property buyers in the UK are being forced to operate in a sellers’ market. The reason for this is simple; with a chronic imbalance between supply and demand, vendors are able to place a premium on their listed properties.
In fact, a leading think tank in the UK concluded that an estimated 250,000 new houses need to be built each year to keep pace with demand. Despite this, just 150,000 are actually being built on average, creating a huge shortfall and pushing up house prices to new highs.
How to Add value: Architectural changes to boost your properties price point
While vendors may be able to rely on disproportionate house price growth at present to make their money, it is still sensible to take practical steps towards adding value to your home should a price crash occur. In this respect, architectural changes offer the greatest benefits, with the following examples the best to add value to your house before selling: –
- Build an extension or a Lean-to
There are many different types of extension, from two-storey additions to the creation of a single, compact room. As a result of this, the cost of an extension can vary wildly, so the key is to focus on your precise budget and choose an option that optimises your available returns. Extending your home with an extra bedroom can add up to 10% to the value of your home, for example, while this can also be completed for a relatively competitive price. This is the most popular type of structural change, and one that improves the values proposition for buyers.
- Modify your Kitchen to be open plan
If you do not extend your home or add a bedroom, you may look to fit a brand new kitchen in your living space. This instantly refreshes and updates the architecture within your home, while the open plan design acts as a focal point for all social activity, being the de facto ‘hub’ of the house. While this may set you back approximately £8,000 it can add up to 6% to the value of your home. Well worth the outlay.
- Build a conservatory
A conservatory is a large-scale lean-to which usually sits at the back of the property, and it is considered to offer an excellent ROI. Experts estimate that the average conservatory delivers an ROI in the region of 108%, while the cost of such a project can range anywhere between £4,000 to £10,000. So long as you keep the project under a certain size, you can also avoid the need to apply for planning permission and negate the associated costs.
- Convert your loft space
While conservatories and extensions give your property extra space and added value, they do require you eat into your existing land to make room. This is fine if you have it to spare, but if you don’t; a loft conversion is your best friend. While prices vary drastically depending on what you commission, you are looking at a solid £20,000 for a standard and well decorated conversion. Of course, you may be able to find more competitive prices from builders who will deliver more for your money – for instance adding a dormer to the extension along with solar panels for the roof – but £20,000 is the minimum price you should budget for.
While this may come as a shock to the system, the ROI is very healthy, giving you back all of your investment and possibly more if you spend less than £22,000. According to the Guardian, a loft conversion is the single most valuable upgrade you can make to your property. It can also save you money in the long run, as during the building process, your builder will fit energy saving insulation – something you probably won’t have had installed previously.