Is doing work to your home worth it financially?

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For many of our clients, the issue of whether works they wish to carry out in their home will mean an increase in the value of the property or not, is of no concern. They have found their ideal home, they have no intention of ever moving, and the works they wish to do are for the purpose of creating the perfect space for them and their family. But for many others this is an important factor to consider when deciding on home improvements, and something we are often asked by prospective clients.

Generally speaking, if you make improvements to a property, the value is going to increase as a result. But the question is by how much and will the increase take account of the amount of money spent?

The answer to this is not clear cut. As a general rule, adding additional rooms through extending your home will add value, although not always. Likewise, removing a room, for example because you wish to knock two rooms together to make an improved space, may in theory reduce value but if you have made the space vastly more useable you will likely have increased the value.

Our clients, Jonny and Lynn Kane are a good example of carrying out work to a property and increasing its value substantially in doing so. They bought an old stone cottage in a dilapidated state in 2016, requiring a huge amount of modernisation. Jonny and Lynn took it a stage further however and carried out an enormity of work to the property. We designed a glass extension to the rear and the full ground floor was opened into one luxurious open-plan kitchen/living space, with the front door relocated in the process. Upstairs was completely remodeled also and the property was also extended into the attic. This involved raising the roof of the building and going with a design that was highly challenging for us to agree with Building Control. Modern finishes were added and the result was a stunning home for the couple and their cats; completely unrecognizable from the old cottage they originally purchased.

So what about the costs? They originally purchased the property in 2016 for £167,777.00 and they spent a total of £123,000.00 on the project. This covered the build cost itself as well as professional architectural and engineering fees, council application fees, as well as all fixtures and fittings. The total spend was £290,777.00. In 2017 the property was valued at £310 thousand but Johnny and Lynn were informed that they would likely receive a higher sale price due to the very high quality finishes they used throughout. This is certainly a factor to consider if you are intending on eventually selling your home. Good quality, modern finishes are appealing to buyers and you may be able to achieve a higher sale value as a result. Jonny and Lynn’s property is currently on the market for offers over £340 thousand, meaning the financial profit they can expect to make is in the region of £50 thousand.

If you are intending to carry out improvements to a property with the only intention of increasing value and making financial profit, you may consider this sort of return over a 3 year period to be relatively low when considering the financial investment as well as the investment in your time and energy, which should never be underestimated. But Johnny and Lynn, as for our other clients, have lived in their dream home, exactly suited to their personal needs, for two happy years and this is something that does not come with a price tag.

If you would like to know if works you are considering in your home are financially viable or not, it is best to get professional advice. We always recommend appointing a quantity surveyor for accurate costs of your project, and it may also be worth seeking the opinion of a property agent. They will usually carry out a property valuation for free and will likely be able to give you a rough indication on whether the works you are considering will add value and by how much.

Find out how we can help with your project and contact us today