Home improvements add £30k to property's value
Home improvements add nearly £30,000 to a property's value on average, new research from peer-to-peer lender Zopa, has found.
The lender has launched a new Home Improvement Index that asks homeowners who have taken out a home improvement loan how much value the work had added to their property.
It found that the average home improvement job was adding an extra 10% to a property's value (£29,879), while the average return on the investment was estimated to be 80%.
A conservatory was top of the list in terms of giving most bang for your buck, offering a 108% return on the average investment of £5,300, followed by garden improvements (88% return, average cost of £4,500) and exterior improvements (75% return, £6,000 average cost).
An extension would give you the most profit of £14,000 (though only a 71% return on your investment, with an average cost of £19,750), followed by a loft conversion (£12,000 profit, average cost £24,600).
Despite offering some of the lowest returns on investment and profit (49% return, £4,750 profit), redoing the kitchen was the most popular home improvement last year, with 30% of Zopa home loans taken out to fund the work.
Adapt rather than move
However, people aren't undertaking home improvements, so they can maximise its value in the house market. The vast majority of homeowners, 82%, said that despite improving their homes, they were not planning on selling-up any time soon, suggesting that owners are preferring to adapt their current homes rather than move house.
Zopa chief executive and co-founder Giles Andrews said: "With the latest housing market reports showing the market to be slowing down, home owners could add significant value by looking at ways to improve their current homes, rather than move. With record low rates on borrowing, home improvements can be a cost-effective way to add value to your property for the long term."