Redrow adds value with new specification

Improvements to the interior specification of Redrow’s homes added an average of 6.2% to a property’s value according to research among chartered surveyors.

The biggest impact came from more usable living space, with larger, more open-plan kitchen, dining and living areas, offering direct access to the garden, high on the valuers’ list of items which added value.

Research was carried out independently by In-house Research and Training Limited and the results reviewed by Barry Hall, FRICS, MCIArb, current chairman of the Residential Survey & Valuation Group of the Royal Institution of Chartered Surveyors (RICS).

The qualitative research was undertaken among a representative sample of 42 chartered surveyors and valuers across England, Scotland and Wales, via a web-link questionnaire using photographic examples.

Participants were asked to assume that two newly built properties had been brought to the market, identical except that one had a ‘standard’ internal specification and one had been updated. If the standard property was marketed at £150,000, opinions were sought regarding the additional value of the various elements of the new specification.

The majority of valuers (65%) supported an uplift of between £3,000 and £10,000, with an average addition to value of £9,250 or 6.2% of the £150,000 price. A small number (5%) of participants said the improvements added between £20,000 and £30,000.

Quality fitted kitchens and bathrooms scored highly on the list of items which added value and the aspects of space and design in the new-look kitchens were particular motivators. The additional usable space is made available by the relocation elsewhere of the boiler and washing / drying facilities, together with the use of wider opening doors to the garden.

Commenting on the research, Barry Hall, FRICS, MCIArb, said: “Builders are faced with real challenges in this market to differentiate themselves and promote their developments. Quality of finish and quality of fittings, made to last, are part of the package that will help a developer sell homes, and Redrow have made a statement with their current specification.”

He added: “Sustainable value on a new build property is to be distinguished from any element of ‘new build premium’, which relates purely to any value placed on the fact that the home has not yet been occupied and used for the first time, so all the finishes and surfaces are unblemished. Aspects which add sustainable value will invariably include elements of layout and design, which distinguish a property and stay with it. Equally, new materials, energy saving devices and high insulation features may add sustainable value.”

Barry Hall concludes that location and home type are fundamental factors that influence value, but a quality internal specification on its own is unlikely to succeed. A combination of home type, size and style of finish in the right location can provide sustainable value, but the size and arrangement of the accommodation is crucial.

Redrow is now further refining its interior specification and taking a close look at its core housing range to return the business to its historic strength in traditional family housing. A new housing range is being designed with attractive external design, enhanced specification and internal layouts to suit modern day living. The new range will be rolled out during the autumn, with a full sales launch intended for January 2010.

Kim Peters, group marketing director for Redrow, said: “We’re pleased that this research was able to prove that the enhancements we’ve made to our specification to date have added real value to our homes, which customers will be able to appreciate. However, never ones to rest on our laurels, we are already working on the next generation of homes with some major changes to the size, shape and overall look of our portfolio.”

For a copy of Redrow’s report, ‘Value to Appreciate’: does an improved interior specification add value to a new home?’, written by Barry Hall, FRICS, MCIArb, email: marketing@redrow.co.uk, putting ‘Valuation Report’ in the subject line.

For more information on Redrow and its homes go to redrow.co.uk.