An extra room could boost your property's value by 20%
Converting your loft or building an extension could add more than a fifth to the value of your home, according to a new study.
Even adding a bedroom can add as much as 10%, while a new bathroom could boost your property price by 5%, according to a report by building society Nationwide.
Its analysis of factors that impact on the value of a house, based on its UK house price data for the year to the second quarter of 2015, found that turning a terraced house from two to three bedrooms, or from three to four bedrooms, added 10 % to its value, while turning a semi-detached house from two to three bedrooms added a whopping 13% to its value. Meanwhile, turning a semi or detached house from three to four bedrooms added 9% to its value.
Robert Gardner, Nationwide’s chief economist, says: “Location remains key to house values, but other factors such as the size of the property are also important to homebuyers. Home improvements that increase floor area, such as an extension or loft conversion, remain a good way to add value.”
He adds: “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.
“Homeowners who add a loft conversion or extension incorporating a double bedroom and a bathroom can add more than 20% to a three-bedroom, one-bathroom house.”
However, Mr Gardner points out that adding a room may be a luxury rather than a necessity, as 85% of owner-occupied properties in England already have at least one spare bedroom, according to the English Housing Survey, with 51% classified as under-occupied, with two or more spare bedrooms.
This is a mutual organisation owned by its members and not by shareholders. These societies offer a range of financial services but have historically concentrated on taking deposits from savers and lending the money to borrowers as mortgages, hence the name. In the mid-1990s many societies “demutualised” and became banks. One academic study (Heffernan, 2003) found demutualised societies’ pricing on deposits and mortgages was more favourable to shareholders than to customers, with the remaining mutual building societies offering consistently better rates. In 1900, there were 2,286 building societies in the UK; in 2011, there are just 51.