Discover which home improvements add the most value.
Homeowners estimate that it would cost them £71,621 to transform their existing property into a perfect dream home, new research reveals.
Three in five homeowners surveyed said that the current housing shortage encourages them to focus on home improvements, with garden makeovers delivering the biggest returns.
Homeowners spend an average of £2,743 on garden renovations and estate agents valuing this improvement at £9,498, people can see a potential 246% return on initial costs. In addition, homeowners who install a brand new central heating system or consider re-vamping the bathroom may see similar returns on costs, at 238% and 210% respectively.
Despite loft conversions being held as the gold standard in home renovations to add both space and value, the research found that this extra room delivers the least in terms of return on investment.
Home improvements which add the most value
|
Home Improvement |
Average homeowners spend |
Estimated value-add by estate agents |
Return on investment (%) |
|
Garden makeover |
£2,743 |
£9,498 |
+246% |
|
New central heating |
£2,762 |
£9,343 |
+238% |
|
A new bathroom |
£2,875 |
£8,918 |
+210% |
|
Kitchen redesign |
£4,328 |
£12,153 |
+181% |
|
Open plan living |
£4,335 |
£11,320 |
+161% |
|
Under stair storage |
£2,479 |
£6,070 |
+145% |
|
Ensuite bathroom |
£4,503 |
£8,303 |
+84% |
|
Tech-centric improvements |
£4,420 |
£7,163 |
+62% |
|
Solar panels |
£6,135 |
£9,925 |
+62% |
|
Loft conversion |
£7,573 |
£12,093 |
+60% |
Improving personal comfort (64%), to feel house proud (43%) and to increase the value of homes (40%) are the top three reasons for people to make home improvements.
For those saving for renovations, the study finds that people save on average £5,055 a year. This figure increases to £6,348 a year for homeowners in London. Despite this, the research found that nearly two-thirds (64%) say they are not saving as much as they would like to towards home renovations.
Commenting on the findings, Julie Edwards, Head of Savings at GE Capital Direct said: “For many homeowners, the start of spring can trigger the desire to tackle home improvement projects. As well as enhancing day-to-day living, the right renovations can help to boost the value of your home. Careful planning, with achievable targets, supported by a regular savings habit can make creating a dream home achievable.”
Interior designer and GE Capital Direct ambassador, Julia Kendell added: “There’s no doubt that undertaking home renovations is sensible; not just for the increase in value and appeal to your property that can be achieved, but also the uplift in function and enjoyment.
“A well-designed home can make a significant positive impact to your quality of life. From having enough space for friends and family to socialise and stay, to ensuring everything has a place and is well organised, emotionally connecting to your home is vital to support and energise you in everyday life.”