The average renovation increases the value of a home by £58,333, research shows.
Taking into account the £44,889 average cost of the renovation for homeowners, the average profit totals £13,444, a 23% return on investment.
To highlight the most profitable renovations people make, insulation supplier Insulation Express gleaned every episode of Kirstie Allsopp and Phil Spencer’s Love It or List It series.
Creating a large open kitchen and diner was the most popular renovation (86% of properties), while 64% added an additional bathroom or refurbished their current bathroom. The other findings revealed:
- 46% of homeowners altered the layout of their properties
- 36% added an extension or converted the loft
- 32% added a utility room
The Reasons for Renovation
Renovating a house is an exciting process that can maximise space in your home and add value to your property. It is also a cost-effective project if you can’t afford to move home or self build a new property.
With 64% of homeowners believing they need to move to a bigger home for more space, remodelling is a prudent way of utilising the existing space in your home to create a functional layout.
However, the findings also showed 54% of renovations went over budget throughout the series, and the importance of maintaining a strict costs plan is clear.
It’s best to consider these in the planning process, as well as any fees you may have to pay for planning permission and Building Regulations approval.
(MORE: 10 Ways to Renovate on a Budget)