Nationwide data shows that more homeowners are choosing to improve their home rather than move, and some people are spending up to 100,000 on renovations
Brits are being encouraged to make a single alteration to their homes that could boost its value by 24 per cent.
According to new data from Nationwide, adding an extension or loft conversion with a bedroom can increase a property’s value by up to 24%, which equates to an additional £65,279 on an average home priced at £271,995. Financial experts have observed homeowners in London and the south-east adding over £100,000 to their property values through high-quality loft conversions.
Nationwide’s senior economist, Andrew Harvey, stated: “Homeowners that add a loft conversion or extension, incorporating a large double bedroom and bathroom, can add as much as 24% to the value of a three-bedroom, one-bathroom house.
READ MORE: Simple 2-minute check Brits should do before turning on heating to save moneyREAD MORE: DWP’s hidden ‘Christmas war chest’ of payments could add £6,500 to your bank
“Our analysis suggests that, providing the room is useable, this can be a good way to increase the value of a property. The table below shows the value added for different property types by increasing floor area to accommodate an extra bedroom.”
It has been noted that more homeowners are opting to enhance and expand their current properties rather than relocating, reports Birmingham Live.
Aaron Strutt, product and communications director at London-based Trinity Financial, said: “More homeowners are choosing to improve and extend their property rather than move.
“Recent data from Churchill home insurance showed that one in 15 homes in England and Wales (1,740,402 homes) now carry official improvement Indicators, following substantial home improvements, such as loft conversions and extensions.
“Lots of our clients are re-mortgaging to release funds to pay for home improvements. It often makes sense to release funds when your fixed rate comes to an end rather than getting additional borrowing.”
READ MORE: ‘I told parents I’d won £1m on ITV’s Win Win and their reaction was priceless’
He continued: “This way, you have one mortgage rather than a mortgage on two parts that potentially have different end dates. With so much competition in the market to attract borrowers, there are more remortgage options, especially for those keen to raise funds.”
Omer Mehmet, managing director at Welling-based Trinity Finance, emphasised it’s not just about value. He further stated: “A well-executed loft conversion is one of the most reliable ways to add real value to a home. Turning unused space into an extra bedroom and bathroom doesn’t just boost value – it transforms how a property lives and feels.”
“We’ve seen clients add £100,000-plus in value on London and south-east homes through high-quality lofts, especially when they enhance light and flow. The key is to spend smartly: poor design or cutting corners can wipe out any return. Done properly, a loft conversion is a win for both lifestyle and long-term equity.”
