Loft extensions boost prices skywards

Monday, 04, Jun 2007 04:08

Homeowners looking to add the most value to their property should consider a loft conversion or extension over a cosmetic revamp of the kitchen or bathroom.

A well-designed loft conversion can add £22,300 to the value of a property, research by GE Money found.

This made it the most rewarding home improvement, closely followed by an extension, which offers average returns of £19,271.

With demand for housing and space at a premium, it should be unsurprising that adding another room to a house can benefit sellers.

But GE Money found many homeowners wrongly think a new kitchen or bathroom will be the most rewarding improvement. In fact, they add just £8,250 and £5,155 respectively to the average value of a home.

"In many cases homeowners automatically opt for a new kitchen or bathroom," said Giacomo Gigantiello of GE Money home lending.

"Whilst these are valuable additions to any home, the findings from this research show that it is also important to consider improvements that will ultimately increase a property's living area."

Based on a survey of estate agents, GE Money further found a new conservatory can boost a property's value by as much as £11,904. After a new kitchen, installing central heating is the fifth most lucrative investment, adding £6,147 to an asking price.

Mr Gigantiello continued: "Homeowners planning improvements to their homes this summer to specifically increase the value of their property could be missing out on the most valuable additions.

"At a time of year when many are planning to improve the value and desirability of their homes, it is important that consumers appreciate and establish DIY and renovation tasks which will add the most equity to their particular home."