Britons have increased the value of their homes by £6.5 billion through alterations and extensions in the year to March 2015, new research from estate agency Savills has revealed.
Almost 220,000 homeowners have chosen to improve their living situation by refurbishing or adding space to their properties rather than moving.
The average value boost has been estimated at £30,000.
Londoners are keener on home improvements than people elsewhere in the country, with one in 44 homeowners in the capital having some work done in the twelve months to March, the study shows. Nation-wide that ratio stands at one in 74.
The South East has also been very active in that area and together with London the region accounted for the better part of the property value increase (£3.6 billion).
More people now are going for alterations or extensions rather than find a new place to live as mortgages are considerably harder to get and moving up the property ladder has become more expensive, according to Lucian Cook, head of Savills’ residential research.
House extensions have been identified as the most popular trend for home improvements in a study released by Direct Line Home Insurance in May 2015. The survey, which identifies the latest building and renovation trends among builders and tradesmen, revealed that almost half (47 per cent) of builders believe the best way to add value to your property this year is through extensions.
The difference in asking price between a two and three bedroom home in London is £157,202 on average, while the average bedroom extension cost is £35,000, according to the Direct Line research. The asking price difference in Scotland between two and three bed properties is still £45,949, reinforcing that home owners can potentially make a hefty profit by extending their existing property, the study concludes.
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It’s amazing how much difference some home improvements can make to the property pricing, we have found that even a simple redecoration before putting the house on the market can have a drastic effect on interest as well as effecting prices.