A Guide to adding Value to your home

As a London lofts and extensions design and build company, we firmly believe that whatever work you do to your home should add value, both financial value and wellbeing. The initial idea for a loft conversion or an extension is typically driven by the desire or need for more space. Then there is the toss-up between moving and staying put in the area you love and so the search for property ensues. You find that dream property outside of London, in the countryside with acres of space and that old worldly village charm. And then reality kicks in, stamp duty costs, estate agent fees, surveys, legal searches, the pitfalls of the dreaded “chain”, commute (and cost of commute), new schools etc etc. The idea of moving home can very quickly become overwhelming. The other option is to stay where you are with everything on your doorstep, neighbours you get along with, local shops, entertainment, a good community, the kid’s school’s etc.

So instead, why not extend your living space with a loft conversion or an extension? But is it worth it?

We have all heard the term improve don’t move bandied around, but for London, this could not be more relevant. According to RESI, families are 15% less likely to move in a 10-year period then they were in the past. Beyond the cost of moving, there is the uncertainty in the UK housing market and timing your decision right can be challenging. Furthermore, a home is not just bricks and mortar anymore, it’s about where you live, the community, your commute and access to facilities, all those things that make up a home and a place to live your life.

There is no need to lose these things when all you need to do is add more rooms. Adding more usable floor space to your home in London is generally thought to be consistent with better quality accommodation. According to a Nationwide House Price Index special report published in August 2023 on what adds value to a home, a loft conversion or extension that increases floor space to a home can add up to 25% to the value of a property. The report states that location is the key factor in house value but the size of a property (including the number of bedrooms) is also a major influence on property value. The report also states that since the last review, carried out in 2016, increasing the floor space in your property with a loft conversion or extension is still the most compelling way to add value and that the value added by such home improvements has been seen to have increased from 22% to 25%.

Although we have seen a slow down since the pandemic of the “race for space” in our homes and with more and more people moving back to the office for work there is less need for that extra room for an office. However, people in London still want to increase their living space and turn what is essentially a divided Victorian house into a much more integrated living, working and dining space.

What is the value of adding space?

The Nationwide research showed that adding a second bathroom, all else being equal, can add up to 6% to the value of an average home. According to the research, homeowners that add an extension or loft conversion to a typical three-bedroom property can increase the property’s value by up to 25% when incorporating another bedroom and bathroom; this is up from the 22% reported in 2016.

The study showed that for a typical two-bedroom terraced house the value can increase by 13% when adding a loft conversion with an extra bedroom. For a three-bedroom terraced house the value can increase by 10% when converting the loft to add a fourth bedroom. The value added is slightly higher for a semi-detached house, with 17% added to the value converting from a two-bedroom to three-bedroom property and 11% when adding a fourth bedroom.

Is adding an extension a luxury or a necessity?

Many homeowners in London, typically buy their property either as an investment with the intention to improve and then move to a larger property, but many also buy a property in London with the intention to expand into it over time as their family grows. As mentioned earlier, location is also a driving factor in the value of your home, London being the location known to benefit from the largest increase in value with added floor space. On the flip side, it is also one of the most expensive places to undertake a loft conversion or extension. As we previously reported a loft conversion in London can cost between £40,000 and £95,000. According to the House Price Index published in August 2024, the average price of a house in London was £531,000. If a loft conversion (including a bedroom and a bathroom) adds 25% to the value of the property, it makes a loft conversion in your home a very worthwhile investment. Your home is considered to be one of the best ways to invest your cash.

What type of space adds the most value?

Whilst a kitchen extension can add a significant value to the quality of your living space, it is functional, good quality additional rooms that will maximise the added value here. An added bedroom is always going to be the key point here but also a good quality en-suite or shower room can really give back in value. With a extension the dining room is usually moved to the new extension which automatically creates an extra room or space in the existing property where the dining room previously was. This is a great area of a quieter lounge or office space.

Quality over Quantity

It can be very tempting to cut corners with construction. But, in our opinion, getting a good quality build is the priority. Ensuring a good quality building and finish is vital to adding value to your home. Any surveyor worth their salt will be able to spot cut corners and improper finishes. A below par quality finish on a loft conversion or extension can be detrimental to the value of your home as it may not comply with building regulations, it may be poorly insulated and cause more issues in the long term.

Energy Efficiency

Making your home more energy efficient is an added bonus of carrying out a Loft Conversion or Extension. Most housing stock in London is Victorian, Edwardian or pre or post war built. Most do not have sufficient insulation even when updated in the 80s or 90s. Over the past 10 years, energy efficiency has improved significantly thanks to home improvements. With a loft conversion, you are not only adding space to your property, but you are also adding a much more efficient layer of insulation in both the roof and walls. Similarly with an extension, these are finished with a high level of insulation and the glazing u-values are so high now that heat loss and heat ingress is minimised. This increases the energy efficiency rating of your home and will help to reduce the overall cost of energy and adding value.

Where to start with a loft conversion or extension?

The first thing to do is research the lofts or extensions in your area. Take a walk around and see what other people have done. Devise a plan of what you want to achieve and how your space will be used. Then contact us. We offer the full service including Architectural Design and offer the full project management service. A lot of our business comes through recommendations from friends and neighbours, so speak with someone you know who has worked with a builder. Creative Spaces are accredited members of the Federation of Master Builders and Trust Mark. This means we are rigorously vetted each year to ensure we meet the highest industry standards. Give us a call and speak to us about your ideas and requirements.