It's not just the property's location that matters, according to Nationwide.
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March 29, 2016 12:00
What's the latest?
Adding an extra bedroom and bathroom onto a property can boost its value by nearly £60,000.
According to Nationwide, these two extra rooms (built as an extension or loft conversion) can add more than 20% to a home's market value. And with the average UK home currently worth £290,919, according to Zoopla, that's a total of £58,183.
Extending a home by an extra bedroom alone can add more than 10% or £29,091, while just an extra bathroom can boost a property's value by a typical 5% or £14,545.
The figures are built on the Nationwide's estimates that a 10% increase in floor space, all things equal, adds 5% to the price of a typical house, while adding space equivalent to a typical double bedroom (to a two-bedroom house) can add around 11% to its value.
Why is it happening?
Robert Gardner, Nationwide’s chief economist said that many householders buy properties they intend to grow into over time as their families expand and - given demographic trends - tend to remain in that home after their children have grown up and flown the nest.
In terms of the impact on the home's value, he explained: "Having more useable space is generally thought to be consistent with better quality accommodation and people are prepared to pay for it."
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Who does it affect?
It’ll catch the eye of all homeowners looking to add value to their properties, in particular growing families in need of more space but keen to avoid the high costs of moving.
Sounds interesting. What's the background?
Gardner added: “Location remains key to house values, but other factors such as the size of the property, including the number of bedrooms it offers, are also important to homebuyers. Home improvements that increase floor area, such as an extension or loft conversion, remain a good way to add value."
| Value added | 2 bedroom to 3 bedroom | 3 bedroom to 4 bedroom |
| Terraced | 10% | 10% |
| Semi-detached | 13% | 9% |
| Detached | 9% |
Homeowners lacking either the budget or inclination to extend can make their property more attractive by improving its energy efficiency, says Nationwide. Since 1996, the proportion of households with double glazing has soared from 30% to 81%.
Read more at http://www.zoopla.co.uk/discover/property-news/how-to-boost-your-property-value-according-to-nationwide/#xZl9fJyFQjQxIK8f.99
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