In the dynamic UK housing market, homeowners are constantly looking for strategies to increase the appeal and value of properties. As the UK housing market faced a significant downturn at the end of 2023, homeowners and potential sellers are looking for reliable ways to boost the value of their property. Despite a 1.8% fall in house prices over the last 12 months, strategic home improvements remain one of the best ways to improve property appeal and market value [1]. This article explores the top home improvements that promise to add value to your property against current market trends.

Understanding the Current Market

The UK housing market has seen its most significant annual decline since the 2008 financial crisis, with house prices falling by 1.8% in the 12 months leading up to December 2023. [1] Higher borrowing costs and a general economic downturn have slowed down market activity. However, recent stabilisation in mortgage rates suggests a potential levelling off. In these uncertain times, strategic home improvements can be a sensible step for homeowners looking to increase the market appeal and value of their property.

Home Improvements That Add Value

Whether you renovate your home or renovate an investment property, there are improvements that add value and some that do not. Here are our tips to maximise your profit and make your money go further:

Kitchen Modernisation:

A well-designed, modern kitchen is one of the most profitable renovations. Potential buyers often consider the kitchen the heart of the home, and a sleek, functional space can significantly increase the appeal and value of your home. Consider the inclusion of energy-efficient appliances, durable and stylish countertops, and modern lighting fixtures to create a welcoming and attractive space. Open-plan kitchens that blend seamlessly with living areas are popular and offer a multifunctional area for cooking, dining and socialising.

Bathroom Upgrades:

A bathroom can act as a mini oasis within the home, offering both comfort and luxury. Contemporary fittings and efficient designs not only improve daily living but also attract buyers looking for move-in-ready properties. Consider adding walk-in showers, underfloor heating, and high-quality tiles to create a spa-like atmosphere. Well-designed storage solutions and water-saving fixtures can also enhance functionality and appeal.

Window Enhancements:

The installation of double or triple glazing windows improves insulation, reduces energy costs, and improves the aesthetics of the property. It is a practical improvement that appeals to the environmentally conscious and cost-conscious buyer. High quality windows also improve security and noise insulation, and contribute to a more comfortable and peaceful living environment. Consider the style, colour and material of the frames to ensure that they complement the character of the property and offer maximum efficiency.

Landscaping:

First impressions count, and a well maintained garden can significantly increase curb appeal. Tidy lawns, attractive flower beds and functional outdoor spaces make your property stand out from the crowd. Consider a patio or decking area for outdoor dining and relaxation, and incorporate lighting to create an inviting and safe atmosphere.

Adding Extra Bedrooms:

Whether through loft conversions or extensions, additional bedrooms can significantly increase the value of a home. They cater to growing families and offer flexibility for home offices becoming increasingly desirable. Ensure the new spaces are well integrated into the rest of the property, with thoughtful design and high quality finishes to make the new space a key selling point.

Home Extensions:

Extensions that provide real, useful space for a property can significantly increase its market value. Open-plan living rooms and additional bathrooms are particularly popular and sought after in the current market. Ensure the extension complements the existing architecture and is constructed to high standards. Natural light, through skylights, large windows or bi-fold doors, can make the new space feel airy and spacious, adding to its appeal.

Mitigating Risk in a Declining Market

In a market where prices look to be falling, it’s crucial to invest in improvements that promise the best return on investment. Consult local mortgage professionals to understand which renovations are most likely to increase the value of your property in your area. In addition, ensure that improvements are in line with current market demands and buyer preferences.

In the challenging landscape of the UK housing market in 2024, strategic home improvements stand out as a viable way to add value to properties. By focusing on key areas such as kitchens, bathrooms, windows, landscaping and space additions, homeowners can improve their living environment while increasing the market appeal and potential value of their property. As always, a careful approach tailored to market dynamics and individual property characteristics is crucial to maximise returns.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

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[1] Reuters – UK house prices fall in 2023, to stay subdued next year – December 2023