When your home starts to feel cramped with no space, should you move elsewhere or try to improve it with an extension? It’s a dilemma many homeowners face. However, research shows that an extension could be beneficial in the long-run by adding value to your home.
My Tool Shed has consulted with property experts to reveal the best types of extensions to add value to your home, before uncovering how to build an extension on a budget.
Uncovered: Top 5 Extensions to Add Value to Your Home
We have analysed the best ways to add value to a house through an extension, these are the results:
An Extra Bedroom Can Add 20% to Your Home’s Value
According to a survey by NAEA Propertymark, half of estate agents believe that adding a bedroom adds the most value to your home. But, how much exactly can an additional bedroom add?
Well, following research by My Tool Shed, an added bedroom to a 3-bed home could add a staggering 20% to a property’s value. You are guaranteed to add 20% or more to the house value if the additional bedroom is a master with an en-suite. Meaning you could add £46,400 to the average UK house.
How to Increase Your Kitchen Space and Property Value
With open-plan living becoming increasingly popular and the need for a separate dining room feeling outdated, it’s little surprise that kitchen extensions are so popular. Director of the Practical Planning Company, Benjamin Heginbotham, says a kitchen extension is one of the most popular home improvement projects architects carry out.
Evidently, a bigger kitchen is desirable to new and existing homeowners, but how much value can they add through an extension?
This is all dependent on the size of the current kitchen, if you’re opening up a narrow kitchen you can expect to add £35,000 - £46,400 (15%-20%) to the average UK house. However, Heginbotham, claims you won’t add much value “if you’re merely extending a kitchen that’s already a decent size.”
Loft Conversions Can Make a Hefty £15,000 Profit
Despite an extension with an additional bedroom or bigger kitchen adding the most value, these are costly, so you may need to wait a couple of years to see a return on investment. However, if you’re looking to sell up quick, a loft conversion may be your best bet as it can give you a far bigger return on investment.
The average loft conversion costs £20,000 to build but can add £35,000 (15%) to the average house value – giving you an astonishing £15,000 profit.
Heginbotham explained that to maximise your profit potential, it’s best to use the loft conversion to create a master bedroom with dormer windows to increase the floor space area.
4 Top Tips to Save £29,456 on Your Home Extension
It’s no secret that home extensions can be costly affairs. But, if you’re wanting to add value to your home with an extension, it’s also a good idea to ensure the build is as cost-effective as possible. Luckily, My Tool Shed has uncovered 4 ways to keep costs down, which amounts to saving a staggering £29,456.
1. Do It Yourself and Save £20,250
About a third of the budget of any build is spent on labour costs which work out at £20,250 for a double-storey extension and £13,500 for a single storey. So, if you can carry out some of this work yourself you’ll massively cut down on labour costs. Even if you’re not an expert at DIY, you could still do the site cleaning or manual labour (such as lifting and mixing mortar).
2. Hire Self-Employed Traders to Save £9,000 on VAT
Most architects and builders are required to add VAT to their invoices, which adds an extra 20% to the cost of the overall build. However, if you use a self-employed trader, you can cut that extra cost as they’re not required to charge VAT. Meaning you could save £9,000 on a double-storey extension or £6,000 for a single-storey extension.
3. Save £206 on Planning Permission
You can save £206 on planning permission fees if your extension falls under the permitted development rights. Speak with an architect as they can best advise if the extension would need planning permission and how to keep the costs of the build down.
4. Reuse and Repurpose to Reduce Costs
Cut down on waste by repurposing existing materials. Not only will you be saving on supplies but skip hire costs too. However, if you can’t reuse existing materials, you can always sell these or trade them instead of throwing away. And if you like the idea of cutting down on waste, why not purchase second-hand items for your extension? You can find some great bargains on the internet and salvage yards.
Looking for more ways to add value to your home? Did you know a well-kept garden can add £45,000 to a property? Discover how on our blog post.