Installing a new boiler or central heating system are two of the most profitable home improvements in the UK. According to research from GoCompare home insurance, a new boiler, central heating system, energy saving features and home security will all add value to your property.
In contrast, the cost of updating flooring, installing a new bathroom or adding a new kitchen may outweigh the value added to your home. While these tasks might slightly increase the worth of a property, the cost of carrying out the work will generally rule out the chance of making a profit.
According to the research, only around 26% of home renovations will actually add value to a property. This could lead many homeowners to make a loss by choosing to focus on the wrong home improvement projects.
GoCompare has taken this one step further by creating a Property Investment Calculator. This allows homeowners to discover which home improvements will add value to their property and which could leave them out of pocket.
When renovating properties for resale or rental, keeping an eye on your budget is essential for generating profit. The calculator will help you to determine the average costs of your chosen renovation and how much this could potentially add in value. If you are looking to sell your home in the future and are seeking ways to boost its value, this would be a great place to start.
According to the calculator, the most profitable renovations would be to add a new boiler, central heating or double glazing. These energy saving measures all add up to 4% to the value of the home. By contrast, adding solar panels actually reduces the value of the home by 2%.
Knocking down interior walls to open up the living space or installing a new kitchen would add 2% to the value of the property.whereas new flooring adds nothing. Landscaping the garden would also result in a loss.
The research also revealed the most popular home improvement projects. Redecorating was at the top of the list with 53% of homeowners prioritising this. Next on the list was installing a new kitchen (42%) and new flooring (38%).
According to Henry Pryor, a property buyer involved in the research, “Most people who are thinking of selling their home or looking to improve it to add value will consider the merits of a trip to the DIY store, some will even consider doing some building work in the hope of adding value but not all buyers will be prepared to pay for your idea of improvements or good taste.
Some buyers would even prefer to be able to put their own mark on a property and install the bathroom or kitchen of their choosing and may even pay for the chance to be able to do so. It’s therefore essential that you think carefully why you are spending extra money and who will benefit. My advice is usually to spend money on the things that you want and leave other improvements to the next person who may not share your taste.”
He explained that some energy saving features like an efficient boiler or double glazing will offer an immediate return on your investment.
If you plan to sell your home in the future, it’s important to think about the kind of buyer you hope to attract and how to best present the property. Some buyers will pay a premium to purchase a blank canvas upon which they can put their own mark. So, instead of updating the kitchen in your style or redecorating to your taste, you should focus on the bare bones of the home.
New boilers and central heating offer a surefire way to increase the value of the property. Buyers will also enjoy the peace of mind knowing that the boiler is still within warranty and, if they secure home boiler cover with annual boiler checks from the start, they can keep this warranty intact for longer.