Before embarking on a home-improvement project this autumn, see what will, and what won't, improve the value of your home.
It's been a bad month for homeowners.
First, the Bank of England decides not to cut interest rates.
Then, the Royal Institution of Chartered Surveyors announces house prices have fallen at their highest rate for two years, although it could of course be a temporary blip. (Read Fool News: Fall In House Prices Speeds Up and The Truth About House Prices for more on this subject.)
And then, to add insult to injury, Halifax Home Insurance claims that home makeover shows 'inspire' £350m-worth of damage in the home.
It also found that 4.1 million British households spend over £670m each year fixing poorly executed DIY jobs.
Still, the fact remains, in an uncertain property market, the last thing you want to do is detract value from your home by 'improving' it with purple-flock wallpaper and beige cladding. There is such a thing as watching too many property TV shows, you know!
The good news is, according to a survey of estate agents by GE Money, the right DIY project can add as much as £22,300 to the price tag of an average property.
But what are the most value-adding home improvements?
Make space
Estate agents believe that increasing the square footage of your property is likely to add the most value:
Home Improvements Most Likely To Improve The Value Of A Home, according to Halifax's valuers
Rank | Room | Rank out of ten |
|---|---|---|
1. | Loft conversion | 10 |
2= | New kitchen | 8 |
2= | Painting and decorating | 8 |
4= | Extension/extra rooms | 7 |
4= | New bathroom | 7 |
A similar survey from GE Money breaks down approximately how much money different types of home improvement could potentially add to the price of a property:
Estate Agents' Top 10 DIY Projects, according to GE Money
Recommended Top 10 DIY projects | Average £s Added |
|---|---|
1) Loft conversion | £22,300 |
2) Add an extension | £19,271 |
3) Build a conservatory | £11,904 |
4) New kitchen | £8,250 |
5) Add central heating | £6,147 |
6) New windows | £5,239 |
7) New bathroom | £5,155 |
8) Redecorate | £4,576 |
9) Resurface the driveway | £3,928 |
10) Add decking to the garden | £3,617 |
The problem, as ever, is that the surveys don't agree. While both rate loft conversions highly, Halifax estate agents believe a new kitchen can add more value than a room extension, while the estate agents surveyed by GE Money believe the opposite.
Of course, to some extent, the most value-adding improvements will depend on the property. Perhaps, rather than trying to say what is the most value-adding project, it can be just as helpful to look which home improvements can seriously detract from the desirability of a property:
Estate Agents' View Of What Detracts Value From A Property, according to Alliance & Leicester
Alteration |
|---|
Obviously home-made cupboards or kitchen fittings |
Non-neutral external decoration |
Polystyrene tiles on the ceiling |
All period features removed |
Patterned carpets |
Cheap and poorly-fitted laminated floor |
Poorly executed tiling on walls/floors |
Non-neutral/brightly coloured internal decoration |
Woodchip wallpaper on the walls |
Garden paved over |
What's the solution?
If you're planning a home improvement project this autumn, it's a good idea to take professional advice. Check out homeimprovementadvice.co.uk for some top tips on how to plan small and big projects. And if you're planning an extension, visit growyourhome.com to calculate an estimate of the costs.
Make sure you're fully insured. Most insurance policies cover accidental breakage to parts of your home, such as baths or sinks, but you may need additional accidental cover to protect you against drilling through pipes or putting feet through ceilings!
It's also well worth visiting the Energy Saving Trust, to find out how to make energy-saving (and value-adding) home improvements.
And if you don't fancy sharing your first month in your new home with a load of paint and plaster, bring in the professionals. Visit the Federation of Master Builders to find qualified tradesmen in your area.
Alternatively, check out buildersite.co.uk, which describes itself as 'an online dating service for the construction industry', allowing you to search for local builders based on postcode and trade, and then find out what other customers think about them.
Good luck!
More: Borrowing To Improve Your Home.
>If you are planning to finance your home improvement by remortgaging, check out The Motley Fool's award-winning Mortgage Service and find a deal that's right for you.