What are the property improvements that give the best and worst returns?

Fri 20 Jul 2018

A new tool, created by GoCompare Home Insurance, with the assistance of property expert Henry Pryor, shows the home improvements which add value to a property and those which could end up leaving you short changed.

The ‘Property Investment Calculator’ enables homeowners to calculate the potential profit from a range of home improvements by simply entering their property’s current value and renovation budget. The calculator estimates the added value of undertaking different home improvements and by deducting the average costs of works, gives an indicative profit or loss.

Some of the most profitable projects for homeowners seeking to increase the value of their property include installing a new boiler or central heating system, making energy saving or home security improvements or creating off-street parking. Redecorating, laying new flooring or updating a bathroom may slightly increase the value of a property however, the costs of doing so generally outweigh any potential profit.

Research commissioned by GoCompare Home Insurance found that 26% of home improvements are undertaken specifically to add value to a property with popular renovations including: interior redecoration (53%), fitting a new kitchen (42%), replacing flooring (38%), installing a new bathroom (36%), a garden makeover (36%), installing new double glazing (29%), installing new central heating or boiler (28%). Other works undertaken were: improving insulation (16%), knocking through rooms to create an open-plan space (16%), fitting solar panels (9%) and adding a conservatory (8%).

Renovation for a property worth £225,621* Average cost Estimated property value increase Estimated profit or loss
New boiler £1,995.00 £9,024.84 (4%) £7,029.84
Installed central heating £4,250.00 £9,024.84 (4%) £4,774.84
A garden make-over £1,500.00 £2,256.21 (1%) £756.21
Knocked through rooms £1,750.00 £4,512.42 (2%) £2,762.42
Installing double glazing £8,450.00 £9,024.84 (4%) £574.84
Paint and decorate £2,500.00 £2,256.21 (1%) £-243.79
New flooring £2,200.00 £0.00 (0%) £-2,200.00
New bathroom £4,250.00 £2,256.21 (1%) £-1,993.79
Installing a new kitchen £7,000.00 £4,512.42 (2%) £-2,487.58
Installing solar panels £5,000.00 £-4,512.42 (-2%) £-9,512.42


Pryor said: “Most people who are thinking of selling their home or looking to improve it to add value will consider the merits of a trip to the DIY store, some will even consider doing some building work in the hope of adding value but not all buyers will be prepared to pay for your idea of improvements or good taste. Some buyers would even prefer to be able to put their own mark on a property and install the bathroom or kitchen of their choosing and may even pay for the chance to be able to do so.

It’s therefore essential that you think carefully why you are spending extra money and who will benefit. My advice is usually spend money on the things that you want and leave other improvements to the next person who may not share your taste.

Most buyers prefer to pay for the opportunity to be able to add an attic conversion, kitchen extension or convert a basement. Getting planning permission to do the work is frequently the best investment you can make leaving the actual choice of layout, decoration and equipment to the next owner. Improving the green credentials of a house usually pays – a new boiler, insulation or energy saving measures along with security improvements will usually pay off but some additions like solar panels will be hard to get a payback on immediately.”

Ben Wilson, GoCompare’s home insurance spokesman said, “Our new calculator gives homeowners an understanding of the typical costs and benefits of undertaking a range of projects, before they start the work, allowing them to see the potential financial benefits.

Our calculator provides indicative valuations and estimates based on national data. Therefore, depending on local housing market and labour conditions, the extent of the work undertaken, and materials used, figures for individual projects will differ and we always recommend people shop around to get quotes for work as well.”

Original article: http://www.propertyreporter.co.uk/household/what-are-the-property-improvements-that-give-the-best-and-worst-returns.html

"Been a tenant with Lovetts for the past five years In two different flats and always found them to be really helpful and friendly. Any repairs I had were always dealt with quickly. Only moving as being relocated with work."
Paul S

News Archive

March 2020

Corona Virus - Tenant Update

February 2020

Meet The Team - Q&A Series:Amy Duffy

Meet The Team - Q&A Series

January 2020

COMPULSORY ELECTRICAL SAFETY INSPECTIONS TO BE REQUIRED IN ALL PRIVATE RENTED HOMES

August 2019

5 top tips to ensure you find the best tenants

July 2019

How To Make Your New House A Home

June 2019

6 top tips for a smoother property transaction

We now officially have an award-winning Sales Team!

February 2019

In Conversation: Q&A With David Hawkes, Land & New Homes Director

Are you prepared for the forthcoming Letting Fees Bill?

January 2019

BREAKING: Stricter rules for mandatory electrical checks

Fitness For Human Habitation Act Becomes Law

Fitness For Human Habitation Act is now live, but what does this mean for Landlords?

Why is pays to use an agency that specialises in land deals

October 2018

Self managing? How evicting a tenant could fail spectacularly

September 2018

How we handle the three D’s – Death, Divorce & Debt

August 2018

First time buyers outstrip movers for first time in 23 years

July 2018

What does the profile of a modern landlord now look like?

Could your garden offer you the financial security we all strive for?

The top 4 things that put off UK homebuyers on viewings

House sale failures in the UK fell from record high in first quarter of 2018

Five year mandatory electrical checks for all private rental homes

What are the property improvements that give the best and worst returns?

May 2018

We’ve been selected to join an exclusive national Land and New Homes Network

Your rights for inspecting or viewing a property as a landlord