The housing market is constantly shape shifting, with the average property price in the UK up 20% since 2020 and the start of the COVID crisis. It’s not all rosy for homeowners, however; it’s been predicted that the recent rise in interest rates could lead to a cooling in the housing market in the coming months.
Even if you’re not planning to move home in the near future, keen to avoid the current tumult of the market, it’s important to think about its value and ensure that any changes you make increase your home’s profitability. And if you are thinking of selling, then the landscape for what passes as a lucrative addition to your property has somewhat changed in 2023.
You’ll be surprised by how a small investment now can earn you thousands come the day of the sale, and with that in mind, here are some modern ways to increase the value of your home.
Redecorate To Modernise
Let’s start with the small changes…
If your home has lime green appliances, linoleum floors and bold, geometric wallpaper, just wait for the winces when people come to have a look around. No one wants to go back to the stagflation of the 70s after all.
When prospective buyers spot this, they’ll see a refurbishment job in front of them and will want money off the value of the house for their own costs and inconvenience.
All that said, modernising your home superficially speaking, by painting in light, neutral colours and replacing carpets with hardwood floors, isn’t hard to do at all, particularly when considering the visual and valued impact such a move can make.
This will add a sense of space compared to dark walls and floors, which make you feel more closed in. And if any rooms are cluttered, get decluttering straight away, as no-one wants to see a mess when visualising their future home. Give prospective homebuyers the room to imagine and dream by giving them the room to move.
Upgrade The Kitchen
One definition of modern is “relating to the present or recent times as opposed to the remote past”. Yep, we’re about to mention that word. Since COVID came into our lives, dinner parties and entertaining at home have become increasingly popular. Moreover, with the help of YouTube and social media, we’ve all become amateur chefs. The modern kitchen, then, is one that encourages sociability, and an upgrade to suit these changing needs could be just the lift your property needs.
A modern kitchen breathes fresh life into a home, and ensures prospective buyers are able to picture the very epitome of domestic bliss in the heart of the home.
As the experts at Virgin Money point out, ‘’If you’re wanting to fit a completely new kitchen, including appliances, research shows you can expect to pay around £6,000 and in doing so could add around 3 to 10 percent to the value of your home.’’
Transforming a kitchen is an expensive job, and may not be one they’re prepared to do. If you’re short on cash, then replacing cupboard doors and kitchen tops, and adding energy-efficient lights, will make a lot of difference. But in some instances, a whole new kitchen design might be necessary. In such cases, the money you spend on this will be worth it when you sell the house, so long as you don’t go too overboard with costs.
Put in layman’s terms, a home worth around £200’000, for instance, could have £20’000 of value added for a £6’000 investment. We realise that’s putting it rather simply, but it does emphasise the power of a new kitchen on the price of your property.
Extend Your Living Space
One of the most effective ways to add value to your home is by extending your living space. Whether it’s a fully fitted conservatory, a loft conversion, or a full-blown extension, creating additional square footage can significantly increase your property’s worth.
In the UK, a well-executed extension can add up at least 10% to your home’s value, according to Checkatrade. However, it’s crucial to ensure that the extension is in keeping with the rest of the house and the surrounding properties. A modern, well-designed extension can not only provide you with more living space but also make your home more appealing to potential buyers.
However, it will require the expertise of a qualified and reputable builder, as it will take more than a few bricks and dry-lining supplies to complete your extension. On top of that, remember that planning permission is often required for extensions, so it’s essential to do your research and consult with professionals before embarking on this project. Also, consider the functionality of the extension. A new bedroom, bathroom, or a larger kitchen can be particularly appealing to buyers.
Invest In Outdoor Living
The importance of outdoor space has been highlighted more than ever in recent years. A well-designed garden, patio, or decking area can act as an extension of your home, providing additional living and entertaining space.
This is an investment worth making. As Homes and Gardens report, a nicely landscaped garden can add up to 10% to the value of your home. This could involve landscaping your garden, adding a patio or decking area, or even installing an outdoor kitchen or a hot tub.
In addition, consider the addition of a garden room or a summer house. These structures can serve multiple purposes, such as a home office, a gym, or a relaxation area, making your property more versatile and appealing to a wide range of buyers.
Bathroom Boosterism
As with your kitchen, potential buyers see a big job in front of them if the bathroom isn’t up to scratch. But you don’t always have to buy a whole new bathroom suite to get it looking good. A lick of paint, new lights, a shiny mirror and a bit of regrouting might be all it takes to give the illusion of a modern, functioning bathroom space.
If you sell your home with a bathroom that appears old and decrepit, the buyer might want to knock down the price because they will invest in installing a new bathroom. This will not play in your favour as a seller and may endanger you getting a high return on your investment. Hence, before you put up your house for sale, make sure you have redesigned your bathroom. Interestingly, according to experts, a new bathroom can add around 5% onto your home’s value.
Read: 5 changes that will transform your bathroom on a budget
Increase Energy Efficiency
Potential property buyers also look at a home’s energy rating, not just for electricity bills, but also because they’re eco-conscious – so get this as high as you can before you move out.
Did you know that an estimated 19% of the UK’s greenhouse gases come from heating up our homes? Increasing the energy efficiency of your home won’t just appeal to potential buyer’s pockets, but their green credentials too.
Today, people are willing to pay more for a green home. As reported by the Mirror in October of this year, “a recent study…has found that homeowners could potentially add £29,000 to the price of their house by embarking on some easy eco-upgrades.”
If the doors feel draughty and the windows look shabby, the value of your home might drop, as those looking round will know they have work to do to get the place comfortable and warm. In that Mirror report, it was found that “draft proofing came up tops as the most lucrative eco-upgrade”, followed by thermostat installation.
Indeed, simple, budget energy efficient upgrades, like insulating your loft, sealing cracks around the windows and converting to energy-saving lighting, needn’t cost the earth, but may add more than a few pennies to your home’s value.
Facilitate The Flow Of Natural Light
In today’s world, houses are getting smaller which can also mean less natural light. Unsurprisingly an abundance of natural light is perhaps the most coveted piece of real estate out there and people will pay a premium price for it, with a 2018 survey suggesting that homeowners would pay upwards of £20’000 more than the asking price for a property flooded with the stuff.
As such, you’d be wise to check out this useful guide on the best ways to allow more natural light into your home. Consider adding windows with a contemporary sleek design, just to up the ante on that modern factor.
The Bottom Line
As well as lifting your house price significantly, you may find these changes add to your own quality of life… so much so, that you might decide not to move after all!