Can Home Improvements Affect Property Prices?

Homeowners assume that double glazing, fitted kitchens and loft conversions increase a homes value, but not all do: Discover how home improvements affect property prices.
Prior to commencing home improvements, it is necessary to evaluate the effect each investment will have on property prices. Research provided by the Royal Institution of Chartered Surveyors (RICS) shows that building a basement or converting a garage are likely to be an expensive financial experiment.
Moving House is not Necessary, Following Home Improvements
A number of families choose to perform home improvements in preference to moving house. A fitted kitchen, double glazing or new bathroom can provide a home with a completely new look and feel. This can help a homeowner save money on estate agent fees, stamp duty and further legal charges. This doesn’t even begin to take into account the intangible benefits of time and energy.
Not all Home Improvements Increase Property Prices
Roughly estimated increases in prices:
Double glazing- Costs £7,000 and adds £7,500.
Landscape garden- Costs £900 and adds £6,000.
Off-road parking- Costs £650 and adds £10,000.
New bathroom- Costs £3,000 and adds £4,000.
Decreases in property prices:
Loft conversion- Costs £28,000 and adds £20,000.
Converting a garage to a gym- Costs £25,000 and adds £0.
Extension into garden area- Costs £30,000 and adds £15,000.
Fitted kitchen- Costs £12,000 and adds £8,000.
Building a basement- Costs £50,000 and adds £14,000.
Wooden flooring- Costs £1,200 and adds £0.
Mobility stair chair- Costs £8,000 and adds £0.
* The above information is provided by the Royal Institution of Chartered Surveyors (RICS)
Homeowner Loans Leave Less Equity for a Re-mortgage
Given the current downward direction of house prices, home equity is at a premium. Homeowner loans that are used on ineffective home improvements, such as a loft conversion, may mean that it is vastly more difficult to get a remortgage later on. If the current downward trend continues, it could even push a homeowner into negative equity.
Home improvements such as new fitted kitchens or double glazing, may mean that a homeowner doesn’t need to move house. This can save money on estate agent fees, stamp duty and a whole host of legal charges. However, taking out a homeowner loan, with the intention of increasing property prices requires careful consideration, as a poor decision could be a costly financial setback.
Fitting a mobilty stair chair may not add to the value of your home but it will make life easier. Contact for details.