Home improvements for the best ROI
Home improvements can be pricey purchases, so it's natural that homeowners want to know if the investment will pay off when it comes time to sell.
The good news is that certain upgrades not only add value to your home, but also offer an impressive return on investment. In fact, some renovations allow you to recoup over 70% of your costs. Here, we'll explore the home improvement projects that will help you make your money back and more.
Remodelling your kitchen layout
When it comes to home improvements that deliver top dollar, a kitchen remodel tops the list. For major kitchen renovations, the average UK kitchen project costs anywhere from £6,000 to over £30,000 for a bespoke kitchen, but homeowners can recoup as much as 60% to 140% when it comes time to sell. That's an exceptional return, but smaller kitchen updates can also pay off nicely.
Even if you don't gut the whole kitchen, strategic upgrades like installing new worktops, sinks and lighting fixtures, or changing the layout to make it more practical, can all make a big impact. Replacing outdated appliances with energy efficient models also adds modern appeal. The key is focusing on mid-range updates that give your kitchen a fresh new look without breaking the bank. You'll attract buyers with a lighter, brighter, more functional kitchen.
When updating your kitchen, aim for popular neutral colours and materials to maximise your return on investment and appeal to a broader range of people. With strategic improvements, your dream kitchen can also be a profit generator when you go to sell.
Upgrading and modernising your bathroom suite
Like kitchen overhauls, bathroom remodels also rank among the top home improvements for return on investment. Updating an outdated, dysfunctional bathroom can pay off tremendously in added home value. A bathroom remodel can add a further 5% to the overall value of your home, making the space more appealing to potential buyers viewing the property.
There are several ways to approach a bathroom upgrade, from replacing bathtubs with more spacious and modern walk-in showers to re-tiling, replacing the toilet or adding in a contemporary bathroom vanity. When remodelling a bathroom, focus on finishes and features that align with current trends, like clean, contemporary styles, spa-like comforts and smart storage solutions. Streamlined, neutral palettes using materials like porcelain tile and natural stone are broadly appealing.
Converting your loft room for additional space
One of the most valuable ways to add more usable living space to your home is completing a loft conversion. Transforming unused loft space into an extra bedroom, office, lounge or other living area can significantly boost home value. The average loft conversion in the UK costs between £35,000 and £60,000. But when carried out well, it can add as much as 25% to your home's value, making it one of the best improvements you can make to a property.
Loft conversions create functional space for buyers looking for more bedrooms, a home office or playroom without the need to move. Factors like ceiling height, roof windows and eaves storage impact value, and adding high-end finishes like en-suite baths will also appeal to discerning buyers. Beyond increased living space, loft conversions also allow homeowners to generate extra rental income if desired. The ability to rent out the additional bedroom or living area provides even more long-term ROI.
For homeowners seeking to dramatically increase usable square footage, a properly completed loft conversion is a renovation that offers excellent payback in added market value. The ample returns make the upfront investment well worth the cost.
Updating and converting a tired garage
Don't overlook the value of garage improvements either. A garage is an essential space that can greatly influence home value, and even more so if you modernise it. Garage door replacements, for example, can recoup about 95% of their initial costs. And larger garage renovation projects can have even bigger impacts, such as converting an unfinished garage into living space like a bedroom, office or lounge.
Just as with a loft conversion, homeowners want to maximise space as much as possible and a home that delivers more than just the interior of the property is a huge win. Adding insulation, drywall, floors and heating and cooling transforms the space into comfortable, functional home square footage.
Even if you don't fully convert your garage, adding storage systems, upgraded floors and finishes makes the space much more presentable, while repainting the interior walls and replacing garage doors with modern insulated models also boosts buyer appeal. Improved garages look neater, last longer and provide utility that homebuyers appreciate.
Improving energy efficiency of your home
With rising energy costs, upgrades that improve efficiency have become prime home improvements for return on investment. Energy efficient updates not only reduce monthly bills, they can significantly boost resale value.
Not every update needs to be large-scale. While upgrading heating and cooling systems provides generous returns, even smaller changes like loft insulation, low-flow toilets and LED lighting can boost the value of your property and increase EPC ratings.
These upgrades make homes more comfortable while also reducing environmental impact. Buyers increasingly want homes with excellent insulation, modern heating systems and which will deliver ongoing utility savings. And they'll pay a premium for an eco-friendly home.
While upfront costs can be pricey initially, energy upgrades typically pay for themselves within a few years from energy savings alone. Then when it comes to selling your home, you can recoup most of the installation costs and speed up the sale in one go.
When it comes to home upgrades that help make your money back and more, strategic renovations targeting the right areas are key. Kitchen and bathroom remodels, exterior projects and smart energy-saving improvements can all provide homeowners with excellent ROI when done properly.
Images are from a property for sale in Ludlow (August 2023). For the full listing, please click here.
