While the housing market may have recently embarked on a period of decline, this is largely short-term in nature and should not completely distract from the fact that the average UK property is now valued at £296,422.
In fact, you may decide to cash in on the value of your home by renovating it and optimising its resale value, although this can be a tricky and challenging pastime that (in some cases) requires a considerable investment.
In this post, we’ll look at the most accessible renovation from the perspective of homeowners, while asking why improving your property represents such a solid investment in the current climate.
Getting Started – Why Increase Your Home’s Value?
This may sound like an obvious question, but it should be noted that increasing the value of your property requires a significant financial investment.
At the same time, the UK has now entered a technical recession, which is projected to last through 2023 by the Bank of England (BoE). This will create a period of negative growth and continue to drag down house prices, potentially lowering values at a time when you’re preparing to sell.
So, while selling your home is a good way to leverage value from your most valuable asset when done correctly, it can also be a loss-making exercise if you’re not careful.
How to Successfully Improve the Value of Your Home
When it comes to successfully adding value to your home, one of the key challenges is identifying the best and most in-demand improvements. We’ve outlined a few of the most coveted below to help you on your way.
- #1. Extend Your Home: According to this article, adding a conservatory to your home is the single most rewarding home modification, as while it costs £5,300 to construct on average, it delivers a typical ROI of 108%. Overall, any type of effective and well thought out extension is likely to add value to your home, especially as it introduces additional floor space and (in some instances) creates a brand-new bedroom.
- #2. Invest in Energy Efficient Upgrades: Energy efficiency remains a significant priority for homeowners, so investing in this type of upgrade optimises both demand and value. Certainly, updating your plumbing and heating equipment automatically translates into superior efficiency and lower household bills for occupants, and potential buyers are always looking to minimise the cost-of-living (especially in the current macroeconomic climate).
- #3. Consider a Kitchen Makeover: The kitchen is no longer simply a room where people prepare dinner, as the modern penchants for extended and open-plan kitchen spaces has transformed them into multipurpose entertainment spaces. Nowadays, the kitchen is the heartbeat of any functional, family home, so it’s worth investing in a considerable upgrade or makeover to present this space in its best possible light. The good news is that you can tailor your plans to suit your starting budget!
