Loft conversion, extra bathroom...
What improvements add the most value to a home?
20 October 2011: Adding an extension or a loft conversion to your home could increase its value by almost a quarter, new research by Nationwide Building Society reveals. If you’re a cash-strapped and space-starved homeowner you might find that an extension could be more cost-effective than moving. Our research shows that:
A 10% increase in floor space adds 5% to the price of a typical home.
Adding a bedroom and a bathroom through an extension or loft conversion can add up to 23% to a property’s value.1
Creating an extra bathroom adds 6% to the value of the average home. Robert Gardner, Nationwide's Chief Economist, says: “Having more useable space is generally thought to be consistent with better quality accommodation and people are prepared to pay for it. A 10% increase in floor space, other things equal, adds 5% to the price of a typical house, whilst adding space equivalent to the size of a typical double bedroom to a two bedroom house can add around 12% to its value.
“A second bathroom is also a favourite with homeowners and our research shows that creating an additional bathroom can add 6%to the value of the average house.
“Homeowners that add a loft conversion or extension incorporating a double bedroom and a bathroom can add about 23% to the value of a three bedroom, one bathroom house.
“Households are happy to pay for more space and our analysis suggests that, providing the room is useable2, adding an extra bedroom can be a good way to increase the value of a property.”
The findings are detailed in Nationwide's House Price Index Special Report which looked at the additional value of improvements made to an average three-bedroom house. Read the full report and find out the difference an extra bedroom could make to the value of a terraced, semi detached, or detached house, plus lots more facts and figures about popular home improvements.
Find out how Nationwide can help you borrow more to fund home improvements.
1 The extension/loft conversion is assumed to add approximately 30 square metres.
2 Each additional bedroom is assumed to have a floor area of approximately 13 square metres.