What return do homeowners expect on home improvements?
UK homeowners are confident that a £50,000 investment on home improvements would lead to an increase in the value of their property.
A survey by Plentific found that 45% think they would make a profit by investing that sum on a new extension, decorating or renovations.
In London and Bristol, 10% think they would at least double their money, believing the improvements would increase the value of their home by more than £100,000.
In Wales, Scotland and northern England, expectations were lower with almost half of respondents not expecting to see a rise of £50,000 to cover the cost.
Overall, 6% think £50,000 of home improvements would see their home rise in value by at £100,000, 13% think it would go up by between £75,000 - £100,000 and 26% by between £50,000 and £75,000.
However, 13% think the property value uplift would be about the same as the investment, £50,000 and 42% think it would actually cause their homes value to fall – perhaps those respondents are thinking of doing it themselves and don’t have much confidence in their own DIY skills!
The survey also showed that most homeowners don’t make improvements just to increase the value of their home. 79% said they made home improvements to enhance their living space compared to 17% who did so to increase the value of their home.
First-time buyers under 34 were the most likely to want to make money on home improvements at 32%
Cem Savas, co-founder of Plentific.com, said: “Our latest consumer research highlights homeowners’ confidence in the value of home improvements. It does also paint the picture young owners and those in the South East are more fixated with increasing property values.
“This isn’t a surprise considering the rise in recent times, highlighted this week in the ONS House Price Index, which revealed that properties in the South East had an annual growth of 12.8%.”