According to Nationwide’s Chief Economist, Robert Gardner, location and size continue to be important factors that impact on the value of your home, but home improvements that increase floor area, such as an extension or loft conversion, also remain a good way to add value.
"Ultimately the decision to invest in your home is an individual one," he advises. "Take into account the costs and hassle involved, as well as potential benefits."
An important first step is to ask the right questions, such as:
- How long do you intend to stay in the property?
- What home improvements are homeowners in your area making?
- Who will want to buy your property in a few years’ time?
"The Nationwide March 2016 House Price Index has revealed that adding a loft conversion or an extension incorporating a double bedroom and a bathroom could add more than 20% to the value of a three-bedroom, one bathroom house", Gardner highlights.
"A 10% increase in floor space can add 5% to the price of a typical house, while adding space equivalent to a typical double bedroom to a two-bedroom house can add around 11% to its value."