Creating an additional room in the loft increases the sale price of the typical home by an average of £11,020.
Installing a fashionable ‘living roof’, which involves covering the roof of a property with vegetation and plants, is the second most profitable improvement, adding around £8,676 to a property’s price.
Other lucrative improvements include putting in bi-folding doors, which can add to £5,256 to a home’s value, and carrying out a garage conversion, adding £4,847. Restoring period features can add £4,731 to your home's value.
But adding an extension to a home only increases its sale price by around £4,129.
What are the most popular home improvements?
Despite the potential impact these upgrades can have on the sale price of a property, none of them make it into the top 10 home improvements carried out in the past three years.
Instead homeowners are most likely to have installed a new bathroom at 38%, followed by a new kitchen at 34% or put in a new central heating boiler, also at 34%.
Other popular improvements included replacing windows at 29%, landscaping the garden at 27%, repairing or replacing the roof at 21%, and installing a new heating system at 15%.
Home improvements for living or selling?
As people are opting for home improvements that don't necessarily add the most value to a property, this suggests they're making renovations with a view to living in their homes, rather than selling them.
A combination of the costs involved in moving, such as stamp duty and estate agents’ fees, as well as a recent shortage of homes for sale, has led many people to focus on upgrading their current home.
In fact, when asked why they had carried out home improvements, 40% of people said it was to create a cosier living space, and 23% said it was to increase their property’s energy efficiency.
Only 15% of those questioned in the survey, which was carried out by mortgage lender Halifax, said they had made the upgrades in order to boost their home’s value, while just 18% said it was to improve its kerb appeal.
Do your sums
Homeowners who are keen to improve the value of their property need to make sure they have done their sums before they embark on any work.
While carrying out a loft conversion can add more than £11,000 to a home’s price, the average cost of having the work done comes in at a hefty £22,000.
By contrast, putting bi-fold doors can yield a 56% profit in terms of the impact on a home’s value compared with the cost of the work, while landscaping offers a 43% return.
Top 3 takeaways
1. Installing a new bathroom is the most popular home improvement but carrying out a loft conversion has the biggest impact on a property’s value
2. Creating an additional room in the loft increases the sale price of the typical home by an average of £11,020
3. Installing a fashionable ‘living roof’, putting in bi-folding doors, and carrying out a garage conversion can also help to boost a property’s value