The ultimate guide to adding value to a home by improvement
Home improvements can significantly impact the value of a property, making it more appealing to potential buyers and increasing its market price. In the UK, factors such as location, buyer demand, and the overall property market influence the return on investment (ROI) for home improvements. However, certain renovations consistently add value. This article explores various home improvements, their potential value-added, and considerations for homeowners looking to invest in their property.
1. Kitchen Renovations: The Heart of the Home
Why It Adds Value
The kitchen is one of the most important areas for potential buyers. A modern, well-designed kitchen can add between 5% and 15% to a home’s value. Buyers look for stylish yet functional layouts with high-quality appliances and ample storage.
Best Improvements
• Upgrading worktops (e.g., quartz or granite)
• Replacing outdated cabinets with modern units
• Installing energy-efficient appliances
• Adding a kitchen island for extra workspace and seating
• Enhancing lighting with under-cabinet LED strips and pendant lights
ROI Estimate: 50%–80% of the renovation cost
A full kitchen remodel can cost between £5,000 and £25,000, depending on size and quality. However, even minor updates, such as new cabinet doors or fresh paint, can refresh the space and make a noticeable impact.
2. Bathroom Upgrades: Modern and Luxurious Appeal
Why It Adds Value
Bathrooms are another critical selling point. An outdated or poorly maintained bathroom can be a deal-breaker for buyers. Upgrading a bathroom can add 4%–10% to a home’s value.
Best Improvements
• Installing a new suite with a modern bath, shower, and sink
• Adding a second bathroom or en-suite (especially in older homes)
• Updating tiles and flooring for a contemporary look
• Installing underfloor heating for a touch of luxury
• Improving water efficiency with low-flush toilets and aerated taps
ROI Estimate: 50%–70% of the renovation cost
A full bathroom remodel can cost between £3,000 and £10,000, but even simple updates like new taps, mirrors, and regrouting can make a big difference.
3. Loft Conversion: Adding Usable Living Space
Why It Adds Value
Converting a loft is one of the best ways to add value to a home, with a potential increase of 10%–20% in property value. It transforms unused space into a functional area, often used as a bedroom, home office, or playroom.
Best Improvements
• Adding a dormer window for increased headroom
• Installing proper insulation to improve energy efficiency
• Including an en-suite bathroom for maximum appeal
• Ensuring adequate lighting with skylights or Velux windows
ROI Estimate: 50%–75% of the renovation cost
A typical loft conversion costs £20,000–£50,000, but it can increase a home’s square footage, making it a great long-term investment.
4. Extension: Expanding the Living Area
Why It Adds Value
Extensions provide additional space, making homes more suitable for growing families or those needing extra room for work or leisure. A well-designed extension can add 10%–25% to a property’s value.
Best Improvements
• Single-storey rear extension (popular for kitchen-diners)
• Side return extension (common in Victorian terraces)
• Two-storey extension (adds bedrooms and bathrooms)
• Garden room or office (ideal for home working)
ROI Estimate: 40%–60% of the renovation cost
Costs range from £30,000 to £100,000+, depending on size and materials. Planning permission may be required for larger projects.
5. Energy Efficiency Improvements: Lower Bills, Higher Appeal
Why It Adds Value
With rising energy costs and government incentives, energy-efficient homes are increasingly attractive to buyers. Improvements in this area can add up to 14% to a home’s value and make it more appealing to eco-conscious buyers.
Best Improvements
• Upgrading to double or triple glazing
• Adding loft and wall insulation
• Installing a new boiler or heat pump
• Fitting solar panels (may qualify for government incentives)
• Using smart home technology for energy monitoring
ROI Estimate: 50%–80% of the renovation cost
Costs vary widely, from a £1,500 boiler upgrade to a £5,000+ solar panel installation.
6. Garden and Outdoor Improvements: Maximising Curb Appeal
Why It Adds Value
Outdoor space is a major selling point, especially post-pandemic when homebuyers value gardens more than ever. A well-maintained garden can add 5%–10% to property value.
Best Improvements
• Landscaping with low-maintenance plants
• Adding decking or a patio for outdoor entertaining
• Installing garden lighting for ambiance
• Creating an outdoor office or summerhouse
ROI Estimate: 40%–60% of the renovation cost
Spending £5,000–£15,000 on landscaping and outdoor structures can provide a strong return.
7. Kerb Appeal Enhancements: First Impressions Matter
Why It Adds Value
Buyers often decide within seconds whether they like a home. Improving the exterior can boost a home’s desirability and add 5%–8% to its value.
Best Improvements
• Repainting the front door and exterior walls
• Replacing old windows and doors
• Upgrading the driveway with resin or block paving
• Installing exterior lighting for security and style
ROI Estimate: 50%–70% of the renovation cost
Simple updates like repainting and new fixtures cost as little as £500–£5,000 but can dramatically improve perception.
8. Open-Plan Living: Modern and Spacious Appeal
Why It Adds Value
Modern buyers favour open-plan layouts, particularly in the kitchen and living areas. Removing walls to create a more open space can increase a home’s value by 3%–7%.
Best Improvements
• Knocking down walls to merge kitchen and dining areas
• Adding sliding or bi-fold doors to connect to the garden
• Ensuring adequate structural support with beams where needed
ROI Estimate: 50%–80% of the renovation cost
Costs range from £2,000–£10,000, depending on structural work required.
Final Thoughts: Which Renovations Are Best?
The best home improvements depend on budget, property type, and buyer demand. Loft conversions and extensions offer the highest value increase but require substantial investment. Kitchen and bathroom upgrades are essential for modern appeal. Energy efficiency is an increasingly important factor, especially with government incentives.
For those selling soon, cost-effective updates like repainting, improving kerb appeal, and minor bathroom/kitchen refreshes offer the best ROI with minimal disruption.
Before undertaking any major work, always check planning permission rules and consult estate agents to gauge local demand.