A loft conversion is one of the single best ways to increase the value of a house. In fact, in terms of the value added to a home after completing a loft conversion, it’s not uncommon for the work to pay for itself or even become immediately profitable for homeowners.
We’re often asked how much value a loft conversion would add to a home, but we can’t put a hard figure on this. There are too many factors and variables at play with each and every house. All that we can definitively say is that your loft conversion will add significant value to your home. To get a vague idea of how much it might add, we’ve compiled some of the research completed by industry professionals and experts, so that you can get a better understanding of how a loft conversion might affect your home’s value.
Adding a bedroom adds value
According to research undertaken by Nationwide, a loft conversion that includes an extra bedroom as part of the building plan will add 21% on average to a house’s value. A home based in Brighton & Hove is, on average, worth £360,000 as of 2018.
This means that a loft conversion will add £75,600 in value to the average Brighton & Hove household, providing it has a new bedroom built in as part of the plan. A loft conversion is an easy way to take your house from a 3 bedroom house to a 4 bedroom house, for example, and the number of bedrooms is one of the primary metrics for house valuations.
Increased space, increased house price
This is somewhat dependent on the area of the UK in which you live. For our customers in the Brighton & Hove area, by virtue of being in the South East of the UK, you’re netting an either better return on investment for your loft conversion. This is because research has shown that the price paid per square metre (or square foot) of a house is among the highest in the country.
In the North East, for example, the average square metre of property costs £1597. In the South East, a house is worth £4079 per square metre. By adding a loft, you are literally adding square metres to a house and thereby increasing value. In short, the more space in your house, the more it is worth, and that worth differs depending on where you are in the country.
This means that for a project that adds between 15 to 20 square metres to a house, the increase in value will be between £61,185 and £81,580.
Lofts are more efficient ways of adding value than other extensions
There are always other ways to extend your house, but none offer the same level of return on investment. This is because they’re typically more costly to undergo, and also eat into other valuable areas of your house’s value.
An extension to your house, either in front or behind it, is limited in how far it can go, and typically runs into your garden. Garden space has been shown to be a more and more premium feature for houses, and using it for other purposes may even decrease your home’s value. In addition, planning permission for an extension is a lot more costly and complicated.
A conservatory, another form of extending your house and adding value, runs into similar problems. In fact, research performed by the National Association of Estate Agents found that a conservatory can add a maximum of 5% to the value of a house (compared to a loft’s average of 21%), but could even deter buyers who want more garden space or are put off by the materials often used to build a conservatory (such as uPVC).
It’s also worth noting that loft conversions often provide more practical features for growing families. A conservatory may provide a fantastic place to relax, but a loft conversion can add value-boosting benefits such as bedrooms and bathrooms.
Overall, building upwards instead of outwards is more efficient from a planning permission perspective and also less likely to impact on other areas of your property’s value.
Immediate added value to your lifestyle
Unlike nearly every other financial investment you could make, a loft conversion adds immediate benefits to your life. Having more space in your home means you’ve got more storage, and new rooms to use as you wish. New bedrooms can be used for guests or a growing family. Study spaces are great for the growing number of people working from home or self-employed.
You can also add a little luxury to your life. Use a room for that dream home cinema you’ve always wanted, or perhaps add a workout room to your loft, saving on expensive gym fees and allowing you to exercise without having to leave the house.
There are numerous different ways to use your new loft space, and at Unique Build we love to hear your ideas so that we can realise them for you.
Additional considerations for your loft
It’s important to bear in mind there are a few caveats to consider which may alter how much a loft conversion increases your home’s value.
- Planning permission will vary for different houses based on various factors. If you’re looking to add a loft conversion to a period property, it’s likely to be a more challenging process than adding one to a new build. We will be able to guide you through the planning permission process.
- Loft conversions may not eat into valuable areas such as your garden, but they do remove your attic. You may need to find new storage for items you’re keeping there.
- Different uses for the space will affect value. A new bedroom will boost value the most. A typical room such as a study space or bathroom are the next most effective at boosting value. A more niche and specialist space, for example a music studio for a self-employed music producer, will have the least impact.
- Different types of loft conversions will offer different results when it comes to increasing the value of your house. A dormer window loft conversion tends to be the most effective.
- A loft conversion may affect your insurance policy, particularly if you do add a bedroom to your house.
Loft conversions boost the value of your home
Overall, a loft conversion will add value to a house. It’s difficult to determine exactly how much, as there are numerous factors that come into play. But few financial investments can promise such good returns whilst also offering immediate benefits to your life and your family’s.
We’d be happy to advise further. Just book in a free consultation with us, and we’ll come and visit your home, and provide a quote within 7 days after that.