New findings from a joint survey by the Federation of Master Builders (FMB) and the HomeOwners Alliance (HOA) claim that homeowners can add around £50,000 to the value of their property by creating an open plan kitchen dining space and taking down an existing internal wall.
The research found although owners could spend almost £3,500 in building works, in London the end result could bring a return of £48,417 to an average-priced home in one week.
Brian Berry, chief executive of the FMB, said: “An investment of under £3,500 to create an open plan kitchen/diner can add a whopping £50,000 to the value of an average London home in just one week.
“If you’re looking to move up the property ladder, it’s obviously in your best interests to increase the value of your home as much as possible. By investing in low-cost, high-return projects, not only will you make your home a more pleasant place to live, you’ll also be increasing its value significantly. Better still, these projects take no time at all so the hassle factor will be kept to an absolute minimum.”
Mapping out the benefit of building work
Geography also makes a difference to the added value of property by undertaking home improvements.
In rural Dorset, refurbishing a kitchen and installing new units and flooring would cost in the region of £4,127 and could potentially increase the value of an average priced home by £26,838 in eight days.
In commuter belt Surrey, a mid-range property could have another £35,611 added to its value in around a fortnight by spending circa £6,650 to create a garden room or outside studio or office.
Homeowner beware – improve with care
The caveat is to choose your building project with care because not all improvements will enhance the overall value. For example, homeowners planning to shell out on outside lighting and garden decking totalling £3,971, who live either in the north-east or London, would add zero value by paying builders to do the work.
If you want to work your way up the property ladder to your dream home, you need to know how to maximise the value of where you live now and look at the way developers and housebuilders are designing new homes to reflect the demands from buyers in your own local area.
