Don’t Move, Improve: The Most Profitable Home Improvements Revealed

Don’t Move, Improve: The Most Profitable Home Improvements Revealed
  • The number of homeowners choosing to improve their properties rather than move has increased by 12% over the past 5 years (over 4 million UK households).
  • Interestingly, giving the entire house a fresh lick of paint can add more than £7,000 to its value (3.1%).
  • Unsurprisingly, a kitchen renovation stands to add the most value to a property equating to a whopping £12,442.87 (5.5%).
  • Adding an extension to the loft and the kitchen will equally provide the greatest return on value – an extra £23,754.57 (10.8%).
  • Whilst adding a bedroom can increase a property’s value by £25,338.21 (11.2%).

Whether you’re an existing or prospective homeowner, it’s always vital to understand the impact home improvements can have on your property value. Understanding which renovations can add value to your home, and therefore generate a greater return should you chose to rent, or sell, is key.


Lessons From Warren Buffett: Return On Equity Focus

Berkshire Hathaway Return On EquityWarren Buffett’s early correspondence to Berkshire Hathaway shareholders contains many nuggets of information that investors can learn from. And it’s not just value investors that can learn from Buffett’s early correspondence. Indeed, Buffett’s letters to Berkshire shareholders in the early 1970s don’t cover equity holdings. At the time, Berkshire was still, predominantly a textile company Read More

Q1 hedge fund letters, conference, scoops etc

Due to current economic uncertainty, it comes as no surprise that many homeowners are opting to improving their current home instead of moving.

In fact, according to Hiscox, the number of homeowners opting to improve rather than move has increased by 12% over the past 5 years (representing over 4 million UK households).

This inspired housing agents to investigate which home improvements stand to add the most value to a property.

To achieve this, Sell House Fast took the average price of a UK home, which according to the latest ONS House Price Index comes in at £226,234 (March 2019). Thereafter, calculated the average monetary value per type of renovation or extension, using percentages taken from Hiscox’s ‘Renovation and Extensions report’ which indicates the value increase each renovation could add to a property*.

Unsurprisingly, updating the entire décor of your home can increase the value of your property.

According to the report, a fresh lick of paint all over the house can add up to 3.1%, which when taking into consideration the current average UK property price, translates to more than £7,000; an astronomical figure for a tin of Dulux.

Sell House Fast has highlighted which renovations and improvements add the most value to a property:

Updating the kitchen can add £12,442.87 (5.5%), a new roof adds £7,013.25 (3.1%), the bathroom £5,882.10 (2.6%) and improving the garden up to £3,167.28 (1.4%).

And should homeowners look to take their home renovation project further and add an extension or conversion, this is how much extra value could be added:

A new bedroom can add £25,338.21 (11.2%), a loft conversion and/or kitchen extension can add a further £23,754.57 (10.8%), a basement conversion adds £15,157.68 (6.7%),
a conservatory £13,574.04 (6%) and a new bathroom £12,895.34 (5.7%).

Robby Du Toit, managing director of Sellhousefast, comments:

“Homeowners making the decision to stay put and add, improve and renovate their homes instead of moving, is becoming the new trend for those looking to adapt their property to meet their ever-changing needs and evolving lifestyles. It is logical that many view home renovations as a more economical solution and given the uncertainty of the market due to factors such as Brexit, it certainly seems more beneficial to add value to existing dwellings.”

renovation and extensions

*Figures based on the average UK home price of £226,234 taken from ONS House Price Index 2019. Using percentages taken from Hiscox’s Renovation and Extensions report in order to calculate average monetary value per renovation.

**Hiscox Renovations and Extensions Report 2018 draws on insight from 1,200 homeowners, 100 UK-wide estate agents and over 400 local council planning permission records.

Previous article Top 10 Cities With The Highest Average Monthly Salary In The World
Next article iOS 13 Beta 2 Release Date: What To Expect
Jacob Wolinsky is the founder of, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at) - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver

No posts to display