What renovation gives the best return on investment?

Installing a downstairs toilet adds the most value to a property for homeowners with the lowest upfront cost, according to research by estate agent comparison site GetAgent.co.uk.

The average cost to install a separate downstairs toilet is £3,000, but it can add an extra £12,731 to the price of the house – that’s a 5% increase based on the average UK house price of £254,624.

Renovating a kitchen involves a higher upfront cost, but will add 5.5% to a home’s value. With the average cost to renovate being £8,000 and a potential increase of £14,004, there is an added value of £6,004.

Bathroom renovations could add 2.6% as the added value minus cost is £1,995. An average bathroom suite costs £4,625 and gives a potential increase in house price of £6,620.

Other renovation works with high added value include building a loft conversion at 20% and a conservatory at 6%. Basic redecoration, such as a coat of paint, can add £7,893 with the low upfront cost of £2,900.

Repairs and replacements that can cause the house to be more environmentally friendly, such as a new boiler, roof renovations and adding in double glazing, can increase the value by 1,9%, 3.1% and 3% respectively.

There are some renovations that could make a loss by costing more to implement than they bring in increased house resale value. These include garden landscaping and fitting solar panels, which can lose a homeowner £1,435 and £2,727 respectively.

Founder and chief executive of GetAgent.co.uk, Colby Short, said: “All too often we plough money into our homes without considering whether it will add real value in the eyes of a buyer, as well as the cost of the job in relation to the potential return.

“The best plan of attack is to focus on what appeals to a buyer and this is always going to be more space, particularly in the post-pandemic property market. A loft conversion, extension, conservatory or additional toilet will all help increase the appeal of your home and potentially the price you will achieve when selling.”

Short concluded: “Of course, it’s important to have a clear plan and budget when carrying out renovations to your home. The value added will differ from one property to the next and so there’s no guarantee you will see a return on your investment just because you’ve ploughed a sizable amount of money into renovations.”

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