The research, which questioned property valuation experts from across the UK, indicates that traditional home improvements such as redecorating, new carpeting and even adding new bathrooms, often fails to increase a property’s value by more than the cost of carrying out the work and in many cases adds no value at all.
Homeowners may be keen to change their old carpets, but it is unlikely to improve the value of their home by more than the cost of the carpet, adding on average just £1,273. More worryingly, almost half (49 per cent) of valuers felt that re-carpeting a home would not add any value at all.
What’s it worth?
Home Improvement Average increase in property value Percentage of property valuers who stated no increase in value
Loft conversion £13,567 6 per cent
Room extension £13,285 2 per cent
Conservatory £7,042 16 per cent
New windows £4,423 13 per cent
New kitchen £4,147 21 per cent
New bathroom £2,442 24 per cent
Redecorate house £1,994 44 per cent
Re-surface run up/drive £1,283 37 per cent
Re-carpet house £1,273 49 per cent
Martijn van der Heijden, head of secured lending at HSBC commented: “Today’s challenging housing market is making valuers reconsider previously held assumptions of what home improvements actually add in terms of value. As such, homeowners looking to improve their home, should do so first and foremost to live in and enjoy, rather than for any uncertain increase in value.”
Valuation experts claimed the two most valuable home improvements are loft conversions adding £13,567 and room extensions adding £13,285, both on average across the UK.
The research also highlighted simple cost effective actions homeowners can take to add value to their properties in the run up to a sale or increase the chance of selling. Crucially, 61 per cent of property valuers agreed that the number one way to increase a property’s chance of selling quickly, and for a healthy price, was to de-clutter, moving excess possessions and furniture into storage. Valuers stressed the impression of addition space this creates is key to making an impact on potential buyers.
Similarly the research dispelled some widely held home selling misconceptions such as having the aroma of freshly brewed coffee or cut flowers to welcome prospective buyers. Over 40 per cent of homeowners thought buying flowers and brewing coffee would be worthwhile, whereas only 9 per cent of experts thought they made any difference at all, and none considered them their number one tip.
Will they make a difference? Experts vs Homeowners:
Simple improvement Experts number one choice ( per cent) per cent of experts who claimed it would make a difference per cent of homeowners who thought it would make a difference
De-clutter home 61 per cent 91 per cent 76 per cent
Cut grass and trim flower beds 13 per cent 72 per cent 72 per cent
Paint/Varnish front door 9 per cent 70 per cent 28 per cent
Repair paint chips or wall paper 9 per cent 64 per cent 60 per cent
Repair fences and gates 5 per cent 58 per cent 47 per cent
Replace old fashioned switches and electrical sockets 3 per cent 26 per cent 14 per cent
Clean windows in and out 0 per cent 35 per cent 73 per cent
Place rubbish bins out of sight 0 per cent 33 per cent 46 per cent
New plants for garden or terrace 0 per cent 13 per cent 24 per cent
Fresh coffee and cut flowers 0 per cent 9 per cent 40 per cent
HSBC has allocated £15 billion for mortgage lending in 2009 and has a broad range of best buy mortgages, for both remortgage and new homeowners, up to 90 per cent LTV.
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