An overwhelming majority of UK homeowners think their house value has increased since they bought it by an average of £33,125, a research has found.
The study by Co-Op Insurance found that 91% thought the price of their home has gone up, with renovations and decorations accounting for £14,900 increase in a property’s value.
Furthermore, it revealed that 31% of homeowners bought their property with their eye set on how much money they could make from their investment.
A total of 62% of homeowners solely relied on an increase in house prices in general to make a profit with their property.
Another key deciding factor was location, as 34% chose to buy in an already desirable area and another 32% did some more research before buying in an area dubbed as “up and coming”.
Making changes to the property was a common theme as 76% stated they had made changes to their property since moving in. And 60% of them believe the renovations they’ve made led to an increase in value.
London’s homeowners have seen the biggest average rise in profits thanks to renovations and decorative work with a total of 94% believing their property has increased in value by £21,499.
For homeowners who are looking to sell and want to up their property game a bit in the lead-up, kitchens are a great place to start renovations as 56% believe this is the room that really sells a house. This is followed by the living room as the second most important room and bathroom in third spot.
“Our study shows that homeowners believe by investing in décor and bigger renovation works they are adding value to their homes for future years.”
“Kitchens have long been lauded as the heart of the home and our study continues to solidify this, with over half of homeowners believing that this is the room of the house that could make, or break, a sale,” she pointed out.
“Whilst they are a big draw for prospective buyers, they can be expensive, therefore it’s important to revisit your home insurance policy to ensure you have the right level of cover in place during the building works, to protect you from additional risks during the work. Don’t assume your builder will have insurance in place that covers you in every eventuality,” she added.
Another research, however, also revealed that one in five have made a change to their home they later regretted and another 29% are too scared to make changes in case it was the wrong decision.