According to the latest Home Improvement Survey by UK bank HSBC, home improvements are no longer adding as much value to the property as they did a year ago.
In fact, homeowners might even lose money opting to increase the asking price.
According to HSBC, the only improvements that still add at least some value are new kitchen, bathroom and loft conversion. They, however, will only add around £16,000, which compares to 21,000 pounds last year. According to estimates of Econoloft, UK leading loft conversion company, the typical cost of loft conversion amounts to £20,000-30,000. This means that the home improvement is going to cost more than the added value.
Commenting on the findings, Peter Docker, HSBC head of mortgages, said: "Homeowners should think carefully about the type and extent of any home improvement works they are planning. Those which enhance quality of life while retaining broad appeal should be favoured over more individually-styled alterations."
David Sansome, Managing Director at Sansome & George said: “This survey may grab some headlines but in the main, making improvements to a property will add value. It may however not immediately add back as much value as it costs.
Naturally, improvements should be in keeping with the property. For example, it may be excessive and not a good investment to put a £40,000 kitchen in a £200,000 property but it might well be worth installing in a property costing say £800,000. Most home improvements are made for the benefit of the home owner and not to try and make a “quick buck” therefore the cost vs benefit equation may be different.
Some improvements will add more value than others and at Sansome & George our highly experienced staff will be more than pleased to advise.
