Talking about property prices is something of a pastime in the UK. It shouldn’t come as a surprise; after all, our home is likely to be among the largest purchases we ever make. Naturally, we want the value of that investment to rise. Beyond simply waiting for prices across the property market to increase, what steps can you take to boost value?
Before we dive into the steps that could improve the value of your home, there’s an important factor to take note of. Each area will have a ceiling in terms of property prices. You could spend thousands on your home, but if your home is already nearing the ceiling, it may have little impact. If you’re spending money on your home to increase value, rather than your personal comfort, do some research into recent property sales in your area first to set an appropriate budget.
So, what could boost the value of your home? Here’s a few to get you started:
1. Simple DIY tasks: Those small DIY tasks you’ve been putting off could add value to your home. From a fresh lick of paint to brighten up living areas to carrying out repairs. It might not have a huge impact, but making a home neutral and ready to move into can certainly be attractive to some homebuyers, making it easier to sell. Simple DIY tasks can also enhance other steps you take, giving your home a slick, polished feel.
2. Adding kerb appeal: First impressions count, and they’re particularly important in homes. While we tend to focus on the inside of our homes when renovating, the outside is just as valuable. From ensuring your garden is well maintained to upgrading your front door, the extra kerb appeal can boost value. In fact, spending some time and money investing in the outside of your property is estimated to potentially add up to 10% to your home’s value.
3. Updating the kitchen or bathroom: The kitchen and bathroom are often the two rooms we spend the most amount of money on, and if they look dated it can put off would-be buyers. It’s estimated updating these rooms can add around 5% to the value of your home each. If you decide to go down this route, remember not everyone’s taste will be the same as yours. It’s best to opt for neutral colours and a modern design that will appeal to more people.
4. Completing conversions: Making the most of the space you have can really have an impact on the value of your home. From using garage space to expand your living room to turning the loft into an additional bedroom. It will take some work and cash on your part, but the potential returns can make it all worthwhile when you have your home valued.
5. Adding extensions and conservatories: Extensions can be costly and time-consuming, but if you want to maximise the value of your home, they often help you do just that. By adding living space to your home, it can appeal to a wider market. Adding floor space to an otherwise small kitchen, for example, can offer a 15% increase in the value of your home. Of course, you’ll need to weigh up the cost of carrying out the work with the potential gains.
6. Getting planning permission: If your home has the potential to be expanded, but you don’t have the capital to do so, you can still reap the benefits. Securing planning permission can help prospective buyers see the full potential of your property and envision how it will meet their needs. While it won’t add the value that an extension would, it’s a far simpler solution and could still deliver a significant boost when it comes to the valuation.
The benefits of increasing the value of your home
The clear benefit of taking the above steps is the resale value. Making your property more attractive to potential buyers means it may be snapped up off the market quicker and you’ll be able to command a higher asking price too. It gives you an opportunity to increase the amount you have to put down on your next home or provide liquid capital.
You don’t have to sell your home to start reaping the benefits of investing in it though. When your current mortgage product comes to an end, you may start looking for a new deal. One of the key factors in securing a competitive interest rate is the amount of equity you own.
If the value of your property has increased, while the value of your loan has decreased, your equity will have risen. If you reach a lower loan-to-value (LTV) band, interest rates will typically be lower too. It could reduce your monthly mortgage payments and save you thousands of pounds over the full term.
If you’d like help accessing a new mortgage, whether you’re planning to move or stay in your current home, please contact us. We’re here to provide you with support throughout the process of finding the right mortgage product for you.