How Can I Increase my Home’s Value in 2023?

Regeneration

In the United Kingdom, many homeowners may wonder how they might increase the value of their property. Property values increased by close to 10% in 2022, making it more difficult to move up the property ladder if you haven’t added considerable value to your present house.

However, with the rising price of materials and labour, it is necessary to make prudent decisions about which home renovation projects to undertake in order to maximise your return on investment. The purpose of this article is to help you choose which of the many possible home renovation projects will provide the greatest return on your investment.

Find out how much your home is worth

Find out what your home’s present value is, know the value of similar houses that have been upgraded, and know the ceiling price for homes in the neighbourhood if you want to know what would increase its value the most.

Using internet valuation tools and recently sold prices for comparable houses in the neighbourhood is a wonderful approach to finding out what you need to know. This is not meant to be a precise assessment of your home’s worth, but rather a guideline with which you can start.

By comparing your house’s planned upgrades to the highest recently sold price for a similar property in your neighbourhood, you may get a sense of how much your home could be worth after the implementation of these upgrades and whether or not they are financially smart.

How to increase your home’s value in an economy when both labour and building supplies are in limited supply

More than 60,000 planning applications were submitted on the UK Planning Portal in May 2021, up over 50% from the previous year. Furthermore, many homeowners reported significant price increases for home repair work that same year, and 45 percent of homeowners reported difficulty finding tradesmen to finish home improvement projects.

A worldwide pandemic, Brexit, the war between Russia and Ukraine, and supply chain issues are just a few of the difficulties that merchants have faced in recent years. These obstacles have had a monetary and material effect on prices for both building materials and labour.

If you want to increase your home’s worth through renovations, you should prioritise projects that make economic sense in the current climate.

We’ve compiled a list of some of the most popular UK home improvement projects, together with information on how much those projects have cost over time and how much value they’re likely to bring to your house.

Renovation project: loft conversion

Approx cost before the pandemic: £30,000
Approx cost now: £48,000
Potential valued added: 10-20%

Renovation project: add a single garage

Approx cost before the pandemic: £15,000
Approx cost now: £25,000
Potential valued added: 5-10%

Renovation project: garage conversion

Approx cost before the pandemic: £10,000
Approx cost now: £13,800
Potential valued added: 10%

Renovation project: a new kitchen

Approx cost before the pandemic: £6,000
Approx cost now: £10,500
Potential valued added: 10%

Renovation project: conservatory

Approx cost before the pandemic: £9,000
Approx cost now: £14,300
Potential valued added: 7%

Renovation project: garden office

Approx cost before the pandemic: £20,000
Approx cost now: £28,000
Potential valued added: 5-10%

Renovation project: a new bathroom

Approx cost before the pandemic: £5,000
Approx cost now: £8,000
Potential valued added: 4-5%

Renovation project: a single-story extension

Approx cost before the pandemic: £30,000
Approx cost now: £43,000
Potential valued added: 10-20%

Converting your attic into usable space is a great way to increase your home’s resale value

One of the best ways to increase your living space without sacrificing any outdoor area is to convert your attic.

Your home’s value can increase by as much as 20% if you convert your attic, which is currently unused, dead space. A converted attic is a common choice for homeowners looking to add a good-sized room with an ensuite bathroom to their house. This is because most attics are large enough to accommodate both a bedroom and an attached bathroom.

You can increase your home’s resale price by including a garage

A common problem in many households with children is a lack of enough storage space. Putting up a garage on your property might be a reasonably cost effective and easy way to solve the problem of clutter within the house for both you and any future owners.

A new garage, while not the least expensive home improvement at roughly £25,000, may increase your house’s value by as much as 5–10%. If you want to know if building a garage is a good investment for your home, you should consult a real estate professional in your area to find out how much value it may potentially add to your home.

Make use of a garage you already have by turning it into a living space

The conversion of a garage into liveable space may be accomplished at a relatively low cost. The cost to convert a garage is far lower than the cost to create a regular addition since the framework and foundations are already in place to start with.

Most garages have accumulated lots of stuff, and since you’ll have less room to keep things, it’s necessary to evaluate how you now use the garage and where you’ll move the things that are currently stored there. Another thing to think about is how much room you actually have to work with when converting a garage.

The insulation and plastering processes will result in a loss of around 12 centimetres from each wall. If only one garage is being converted, the resulting space may be rather cramped and have few potential uses. It’s great for adding a study or a playroom, but a more conventional extension could be better if you’re hoping to expand your living or entertaining space, such as with an extra living room.

Tips for increasing your home’s value via remodelling your kitchen or bathroom

If you’re looking to increase your home’s value, renovating your kitchen or bathroom is a wonderful place to start and a popular choice with many homeowners.

Use high-quality fixtures and fittings if you want to increase your home’s worth, and strive for neutrality if you want your renovations to appeal to the largest possible audience. Especially if you are thinking of selling in the near future, try to stay away from so-called “trends” that will make the rooms seem dated in no time.

Creating a garden office can increase its value

Since the pandemic, there has been a considerable shift in people’s expectations of work-life balance, with many workers now expecting the ability to work from home, even if only a part of the week, as routine. Indeed, many companies have seen the utility of hybrid working and have kept this practise in place for employees.

Your property’s value and desirability can be increased by building a garden office, which allows you to work from the comfort of your own home without disrupting your family’s daily routine. After all, it’s not ideal to make a business call when the dog is constantly barking! An electrified, well-built garden office may cost roughly between £28,000 and £30,000 and can increase your home’s value by as much as 10%.

Add value and square footage to your home with a single story extension

The last few years have seen a rise in the popularity of single-story additions to houses up and down the UK, particularly those that allow the owner to build a huge, combined kitchen, dining room, and living room. The extra time spent at home during the epidemic boosted the need for spacious, multipurpose, open living areas.

Since the price of construction materials has gone up, a moderate single-story addition (4 m x 5 m) is now likely to cost more than £40,000. Although not cheap, a significant addition like this may increase your home’s worth by 10% to 20% and greatly improve how you use it.

What about conservatories?

It’s true that conservatories aren’t as common as they were even only ten or twenty years ago, but a high-quality one can be a great addition to any house. The emphasis is on high quality; this is one area where you don’t want to be tempted to do it on the cheap. An excellent conservatory can be added to your house for roughly £15,000, which is a reasonable price to pay for the extra room it provides. Adding a high-quality conservatory to your home may increase its value by about 7%.

What are the cheapest ways to increase my home’s value?

Making your home more marketable is the key to increasing its value on a shoestring budget. There are a few low-cost and easy fixes that can be made to a home that will immediately increase its value and appeal to home purchasers in the UK.

Redecorate

Let’s start with the most obvious one. When potential homebuyers, as well as, of course, friends and family, come to see your property, there’s nothing more off-putting than a decaying, drab feeling. The environment is important and affects the way we interact with it. A fresh coat of paint can completely change the feel of a room. If you want to attract the largest possible audience, stick to neutral paint colours.

Updated flooring

A major turnoff for purchasers is marked or damaged flooring, which also lowers the value of your house. A home’s value can be increased by making it more appealing to potential purchasers. Keep in mind that many homeowners are looking for “home-ready” properties that don’t need too much work that involves money and time.

Declutter

Increase your home’s attractiveness and marketability through decluttering. With clearer and more organised space, potential buyers will have an easier time seeing themselves and their belongings in the house. On the other hand, the property shouldn’t be overly bare, since this might make it hard for potential buyers to picture themselves living there. It’s about striking the right balance.

Bathroom and kitchen facelift

Even though it may be costly to completely renovate your kitchen or bathroom, it is still feasible to give these rooms a facelift without breaking the bank. Kitchens may be transformed in a matter of hours by painting the cabinets instead of replacing them. Similarly, if your kitchen’s worktops look dated, you may want to consider replacing them or at least giving them a new grouting job around the tiles.

To update a bathroom on a budget, all you need to do is clean or replace the grout and add a few new, affordable accessories that can make a big difference.

Attractiveness to passers-by: kerb appeal

Since most potential buyers make a choice within just a few minutes of viewing a property, it is crucial that you give your home the best first impression possible. Put trash cans out of sight, clean the windows and front door, and maybe even plant some flowers to make your home more welcoming.

Summary

As a result of these and other circumstances, it is now more difficult to increase the value of your home. As noted by Jamie Johnson, CEO of FJP Investment, “Many simple home repairs and renovation jobs now cost significantly more than they did a year or two ago due to rising material and labour costs.

Furthermore, most tradespeople are becoming increasingly hesitant to commit to fixed price quotations since they know the cost of these activities may grow during the work as the cost of materials continues to climb. In light of this, they are advising their clientele to set up a far greater backup fund than the conventional 10%.”

It is still feasible, with the correct home modifications, to increase the value of most homes, but it is unquestionably more challenging. If price growth slows or drops, as many property experts expect, it is crucial to carefully consider whether the money you invest in upgrades will be recovered. If the expected value increase of the property is not significantly greater than the cost of the work done, the renovation may not be worthwhile.

If you are buying real estate as an investment rather than for personal use, it may be in your best interest to maximise the appeal of your present home without undertaking any big renovations and to try to sell your house quickly while the market is hot. Before repurchasing, you might wait for the market to improve or look for another property with more room to grow its value.