Not all home improvements are born equal. While a new swimming pool might sound nice, it rarely adds value. This guide ranks the top home improvement projects by Return on Investment (ROI) for the London property market.
Projects Adding the Most Value
1. Loft Conversion (ROI: 70-100%+)
Adding a bedroom and bathroom is the gold standard.
Cost: £45k – £65k
Value Add: 20% (approx £100k+ in London).
The most reliable way to add value.
2. Kitchen Extension (ROI: 50-80%)
Creating a large open-plan space.
Cost: £60k – £90k
Value Add: 15-20%.
Adds massive “wow factor” and saleability.
3. Adding a Bathroom (ROI: 40-60%)
Creating an en-suite or a downstairs WC.
Cost: £5k – £15k
Value Add: 5%.
Essential for family homes with more than 3 bedrooms.
Beware the Ceiling Price
Every street has a “ceiling price” – the maximum amount a house can sell for, regardless of how nice it is. Check Rightmove/Zoopla for sold prices of the best houses on your street. If you spend £150k but extend beyond the ceiling price, you will be in negative equity.
The Bedroom Math
Moving from a 2-bed to a 3-bed adds huge value because you open up the market to families. Moving from a 4-bed to a 5-bed has diminishing returns.
Best strategy: Ensure you have at least 1 bathroom for every 2-3 bedrooms.
Kerb Appeal (Cheapest Wins)
Never underestimate the front of the house. Painting, a new front door, and tidying the front garden can cost <£2,000 but add £10,000+ in perceived value by setting a positive first impression.
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