Home improvements may not increase property value
29th March 2012
Homeowners planning to put their properties on the market with an estate agent in Manchester, Leeds or any of the UK's other major cities may reconsider any plans they had to make alterations to their house as part of an effort to increase their asking price.
Research from HSBC shows that while over half (52 per cent) of Britons are planning to use the bank holidays in the coming months to make improvements in the home, this may not be the best way improve the value of their property.
Peter Dockar, head of mortgages at HSBC, said: "Homeowners should think carefully about the type and extent of any home-improvement works they are planning."
The survey of property valuers found that 35 per cent believed redecorating would not have any impact on the price at which somebody could put their home on the market, indicating anyone considering taking such steps as a prelude to selling up may be wasting their time.
According to the research, the average increase in property price that results from loft conversions, room extensions, new kitchens and bathrooms all dropped between 2011 and 2012.
Given that any addition comes at a cost, people may be better advised to focus on smaller aspects that can appeal to potential buyers such as using the bank holiday to have a full-scale clean up, remove clutter and ensure the work surfaces are shining.
Valuation expert Paul Cutbill from Countrywide Surveying Services said: "Whilst sensibly improved and well presented homes will generally be attractive to potential purchasers, rising labour and material costs mean that the gap between the cost of improving and monies realised at the point of any sale has been reduced."
As such, people looking to increase the price at which they can put their home on the market may no longer deem large scale building projects as a worthwhile investment.
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