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Improvements could add £54,922 to home value

26/06/2008

Getting home improvements right could add around £54,922 to the value of your home, according to research.

A study from GE Money Home Lending has found the best way to add value to a home is to add additional living space in the form of a loft extension, an extension or a conservatory.

The research found on average a loft conversion would potentially add £22,898 to the price of a property, whilst building an extension could increase the value by approximately £19,800.

Adding a conservatory, the third best way to add value to your home, could increase its value by around £12,229. These three improvements combined could add £54,922 to the value of a typical home, GE Money said.

Gerry Bell, head of mortgage marketing for GE Money Home Lending, said: "The current housing market means that more people are looking to improve their home rather than move.

"However, before embarking on any improvements, it pays to know which ones will add the most value to your property. Region, type of property and location are all factors which will determine which improvement is best for a particular property, with the creation of extra living space continuing to be the best value improvement."

GE Money based its research on interviews with 110 estate agents across the country and current residential property prices.

The lender also found for less costly and dramatic improvements – such as installing a new bathroom suite, redecorating or laying a patio - there are still good returns but they are naturally lower.

In addition, estate agents still do not see energy saving improvements such as installing solar panels as generating much profit, adding just £1,500 to the value of a home.