The unassailable attractiveness of property as a money-making asset persists. While passive appreciation still exists – that’s when homes gradually increase in value with nothing more than time – homeowners are looking at adding values in other ways.
Grand designs diminish
In previous years, buyers would focus on improving a home’s worth by making it bigger, with rear and side extensions increasing the number of bedrooms, bathrooms and overall square footage. It was a case of maximum effort for maximum reward.
Now, ambitious renovation projects have been curtailed by the rising cost of building materials and labour, compounded by house price appreciation that trickled up by just 0.5% between April and May this year*.
Smaller projects find favour
The quest to add value continues but as property company Stacks recently revealed, there has been a shift towards the smaller home improvements that carry some form of reward but with less effort and expense.
So, if you’re on the hunt for a property where you can add value, what types of projects will pay off without a huge commitment or investment? A good place to start is with how a property is laid out internally.
Remodelling for returns
Our living habits have changed over the years and value can be added by remodelling layouts. Look for properties where it could be possible to knock two rooms through to create an open plan kitchen-diner. The reverse is true when it comes to bedrooms. Rejigging space to turn three bedrooms into four can pay dividends – perhaps that extra-large principal bedroom could be divided into two?
En-suite bathrooms are also highly desirable so double check if space in a bedroom could be sectioned off to create another bathroom. And don’t forget to check under the stairs. If the property doesn’t already have a cloakroom, it may be possible to squeeze a WC and basin in this often overlooked gap.
Crucial to the success of ‘minimum effort for maximum reward’ is establishing the complexities of redefining the space. Removing structural elements, knocking down brick walls and installing steel joists will be more costly than adding or removing stud walls, for example. You’ll also need to factor in any electrical or plumbing work.
Restore to former glory
If remodelling is too much effort, there are other ways to add value. Period properties where all the original details are present command a premium on the open market but purchasers can be smart by snapping up an older home that’s in a state of disrepair.
Checkatrade.com says restoring period features can add up to 30% to your property’s value. When you’re looking at properties for sale, examine the condition of cornicing, coving, ceiling roses, fireplaces, original floorboards and sash windows. It is possible to authentically repair or replace these elements and supercharge the appeal of the property.
Make-over magic
Lastly, if you’re familiar with the saying ‘buy the worst house on the best street’, you’ll know that essentially this means purchasing an ugly duckling that can be improved. A poorly presented exterior can have a hugely detrimental effect on a home’s value as we tend to initially appraise properties on aesthetics.
Those snap judgements can lead to a home for sale being overlooked, languishing on the market for months and eventually having its price reduced. If you can see beyond a shabby façade, you could unlock some tantalising potential. Remove cladding and pebble dash, restoring original brickwork and replacing out-of-place windows will quickly elevate a property.
We’d be delighted to help you find a property to buy where you can add value. Please contact us to register your details.
*Nationwide May 2025 house price index
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