Home improvements where they matter
29 May 2006
Home improvement projects should only be carried out after careful consideration and planning to make sure that they add value where it matters, advises Halifax.
New research from Halifax has identified which features of a home are considered to add value and create good, first impressions and those that are considered to be undesirable and potentially detract from the monetary value of a property. Halifax's valuers have then provided details about which home improvements actually add the most monetary value to a property.
Homeowners should take such factors into consideration, if they want to maximise the potential of both their DIY activities and spend.
Key findings of the Halifax research are:
Limescale or mould build up is the most undesirable 'cosmetic' feature of a property – When it comes to DIY priorities, over one in ten people (11%) consider limescale or mould build up to be the most undesirable 'cosmetic' feature of a property.
A modern, fitted kitchen adds the most value to a property, according to respondents
Almost one third of respondents (29%) believe that a fitted, modern kitchen is the main feature to improve the monetary value of a home. A kitchen was ranked in second place by Halifax's valuers.
According to Halifax's valuers a loft conversion can be the best value for money home improvement – Loft conversions can add as much as ten out of ten, in terms of value of money, if the property is located in the right area and the project is properly managed.
A garden moulds first impressions of a property – A well kept, presented garden forms a good, first impression amongst almost half of people (43%.)
The sitting room is the most important room in the house – Over one third (36%) say that if they were to move in the future, it is the sitting room that would appeal to them the most, if it was designed and decorated in a way they liked.
Most people want to change the kitchen – The kitchen is the room that most people want to change (25%.)
1. The most undesirable features of a property:
When it comes to DIY priorities, limescale or mould build up is considered to be the one of the most undesirable 'cosmetic' (11%) features of a property.
With regards to other features of a property, a lack of parking space and a garden area is also undesirable amongst 12% and 11% of respondents respectively.
2. Which home improvements do homeowners think add value:
Almost one third of respondents (29%) believe that a fitted, modern kitchen is the main feature that will improve the monetary value of a home. Double glazing and a conservatory are in second place with 8%.
Creating a good, first impression:
When looking to sell a property, it is essential to create a good, first impression. It would therefore be advisable to focus home improvement effort on garden enhancements and furniture, as a well kept, presented garden forms this opinion for almost half of people (43%.) This is followed by windows and driveways at 13%.
3. The most important room:
The most important room to decorate within the home is considered to be the sitting room. Over one third (36%) say that if they were to move in the future, it is the sitting room that would appeal to them the most - if it was designed and decorated in a way they liked - followed by the kitchen in second place (34%.)
The sitting room is even more popular with men, 40% compared to 32% of women, and those who spend the most time at home, the over 65 year olds (45%.) The kitchen is the second most popular room in the home (34%), particularly with women, 43% compared to 25% of men and amongst 45 to 54 year olds (44%.)
The room most people want to change:
The sitting room may be the most important room, but it is the kitchen that most people want to change (25%.) For those who wanted to change a specific room the bathroom is second on the list for change (16%) and the sitting room is third (11%.)
Jon Sykes, head of mainstream mortgage products at Halifax says: "With any home improvement project planning is key. Changes that are purely down to personal preference and a desire to have the latest 'must have' features can strip value from your property when it comes to selling it.
Essential repairs and replacements are always worthwhile, as avoiding them can lead to bigger problems in the future. And, if you are making improvements, remember that any alterations must be sympathetic to the surroundings, done to a good standard and compliant with building and planning regulations."
4. What Halifax's valuers say:
Although most home improvements add monetary value to a property, the value recouped may only represent a fraction of the actual cost. Therefore, Halifax's valuers have ranked out of ten how much different home improvements can add to the value of a home in the right circumstances and locations. However, they stress that every case is different and that it is wise to take professional advice if you are spending a lot of money and want to ensure that you are adding value for every pound that you spend.
According to Halifax's valuers a loft conversion can be a real star in terms of value and improvement and can score ten out of ten. A new kitchen and painting and decorating are in second place with eight out of ten.
Loft conversions
Loft conversions can add as much as ten out of ten if the property is located in the right area. Where land and property prices are at an absolute premium, as in parts of London, then a loft conversion can provide excellent value for money.
Before starting on any loft conversion activity, it is essential that you gain building regulation and planning permission and, if you are a leaseholder, the Landlord's consent. You should also consider getting the advice of a Chartered Surveyor to advise on the extra value that your project will add.
Remember that loft conversions done badly can detract from the value of your property.
Kitchens
Although almost a third of respondents believe that a fitted, modern kitchen is the main feature of a home that will improve the monetary value of a home, kitchens have been ranked in second place by valuers at eight out of ten.
However, it is important to ensure that expenditure is kept in proportion to the original value of the home. A £20,000 kitchen installed in a £150,000 home, for example, might just be a bit over the top in terms of adding value, unless you are planning on staying a long time and enjoying your dream.
Painting and decorating
Also ranked at eight out of ten, painting and decorating is an excellent, cost effective way of giving you and your home a new lease of life. A recent Halifax survey* found that painting and decorating was the nation's most popular DIY home improvement, with three quarters (75%) of respondents choosing to revamp their homes with a new coat of paint and wallpaper.
If you are thinking of selling then fresh painting and decorating will improve a home's appeal and saleability, which means that it is great value for money in terms of lifestyle and marketability. However, it is important not to go overboard with whacky ideas that may limit your target market and to keep your costs in check. Neutral colours can be the most effective.
Extensions and extra rooms
Ranked at fourth place by both valuers and respondents, extensions and extra rooms received seven out of ten from valuers, but this can be higher depending on the property. Quality, attractive, well proportioned extensions will generally add value, but you may not always get your expenditure back, depending upon the location of your property.
However, alterations must be kept in line with the style of the home, size of plot and layout of accommodation. For example, seven bedrooms and only two living rooms on a postage stamp plot is not a good design.
Bathrooms
Building a new bathroom adds value to a property, but does not recoup the entire cost of the home improvement activity, unless of course the existing one is simply too awful to live with. Halifax's valuers have therefore ranked it at seven out of ten.
Garden Makeovers
On average, garden makeovers receive five out of ten from Halifax's valuers. Certainly improvements to gardens and the provision of attractive outdoor space will improve the quality of life for the user and the appeal of a property to the buyer. In addition, reasonable expenditure may be recouped in terms of added value and will increase saleability, but acres of decking and fountains may be expensive and may not be to everyone's taste.
Central Heating, Loft and Cavity Insulation
Central heating is now considered to be a standard 'must have,' so investment in a new central heating system might not add as much to the value of a home as it did in the past. Only 6% of respondents believe that central heating is the main feature of a home that will improve the monetary value of a home.
Central heating has therefore been ranked as six out of ten by Halifax's valuers, because it is assumed that there should be a decent central heating system in a home. Indeed, a recent Halifax survey found that the 'warmth factor' is now considered to be an essential feature of a home and four fifths of respondents (80%) considered central heating to be essential.
However, investment in new high efficiency boilers may not only entice the 'green' buyer, but will also help to reduce heating bills and improve a home's energy efficiency, a report on which will form part of the new Home Information Pack, which comes in to force next year. Alongside global warming this may herald a big change to the 'best investment' league table.
Halifax's valuers believe that loft and cavity wall insulation adds little (four out of ten) to the actual value of the home, but can save you money in running costs.
Patrick Sawdon, chief valuer at Halifax, says: "Looking at improvements that add value it is important to remember that the best return is not all financial. We do own property to live in and enjoy a quality of life, as well as wanting to get our investment back in the future."
"Well-planned and executed improvements can add to the value of your property significantly. But by the same measure, personal taste and botched work can strip thousands off the price of your home."
