New research has revealed that nine out of 10 homeowners think their house value has increased since they bought it – going up by an average of £33,125.
The study by Co-op Insurance of 1,000 UK homeowners found that 31% bought their property with their eye firmly on how much money they could make from their investment.
Of these, a reliance on house prices increasing generally was the main way (62%) homeowners were hoping this would happen.
Location played a key factor, with over a third (34%) buying in an already desirable area.
Meanwhile, 32% of people went for up and coming areas and 29% bought a home in need of renovation.
Renovation proved to be very popular, with 76% of homeowners doing up their property after moving in.
Of these, 60% believe the renovation works they’ve completed has led to an increase in value. On average, the renovation and decorative work that homeowners have invested in came to £18,224 – giving them a profit of £14,900.
Homeowners in London have seen the biggest average rise in profit thanks to renovation and decorative works, with 94% believing their property has increased in value by £21,499.
However in Northern Ireland, despite 78% of people thinking their value has increased, it doesn’t look to be down to décor or renovation work, with an average loss of £205 being recorded when you compare spend on renovations versus potential value increases.
Kitchen is king when it comes to the rooms homeowners should renovate if they are looking to entice new buyers, with 56% believing it is this room that really sells a home. For a quarter of buyers, the living room is the second most desirable selling feature of a home. Bathrooms, whilst third on the list when it comes to saleability, are only important to 4% of homebuyers according to the research.
Over three quarters (76%) of homeowners have made changes to their homes since they bought them with décor being the most popular choice to spruce up a new pad (73%), followed by, the often more expensive, refitting kitchens (67%) and bathrooms (65%).
Top 10 improvements home owners have made
- Decorated all rooms in the property 73%
- Fitted a new kitchen 67%
- Fitted a new bathroom 65%
- Fitted new windows 64%
- Fitted a new boiler and heating system 57%
- Fitted new external doors 54.3%
- Re-carpeted the house 54.1%
- Renovated garden 49%
- Had new fences and gates added to the property 41%
- Fitted new internal doors 37%
Caroline Hunter, head of home insurance at Co-op, said: “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.”
“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.”
How much value homeowners think they’ve added by region
| Region | Percentage that think value increased | Percentage that believe increase is due to renovation work | Average amount spent on décor/renovation work | Average amount price is believed to have increased | Potential profit/loss made |
|---|---|---|---|---|---|
National |
91% | 60% | £18,224 | £33,125 | £14,901 |
| East Midlands | 91% | 63% | £14,417 | £24,053 | £9,636 |
| East and East Anglia | 96% | 57% | £19,243 | £33,565 | £14,322 |
| London | 94% | 62% | £18,592 | £40,091 | £21,499 |
| North East | 71% | 52% | £9,852 | £16,750 | £6,898 |
| North West | 89% | 57% | £21,312 | £33,610 | £12,298 |
| Northern Ireland | 78% | 81% | £18,659 | £18,454 | -£205 |
| Scotland | 87% | 57% | £16,105 | £27,542 | £11,437 |
| South East | 96% | 51% | £28,550 | £49,208 | £20,658 |
| South West | 91% | 66% | £12,801 | £31,578 | £18,777 |
| Wales | 93% | 90% | £19,710 | £33,603 | £13,893 |
| West Midlands | 89% | 60% | £12,883 | £28,204 | £15,321 |
| Yorkshire and the Humber | 89% | 58% | £13,882 | £23,859 | £9,977 |
