3 home improvements that add the most value (and 3 which won’t) as some renovations recoup less than 80% of cost

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Not all home improvements are equal when it comes to boosting the value of your property.

Some home improvements are great investments that really boost your property’s value, but others might not pay for themselves, and could even make your home less attractive to potential buyers.

Many common home renovations don’t pay for themselves entirely, often recovering less than 80% of the renovation cost. Because of this, it’s crucial to decide if you’re making changes mostly to improve your home for yourself, or to actually increase its value.

I’ve been looking into ways to improve my home and increase its value, and I’ve found some projects are much better investments than others. It’s good to know what upgrades will actually pay off and which ones might just end up costing me money in the long run.

Home improvements that add value

1. Loft conversion or extension

Adding extra space is one of the most reliable ways to increase your property’s property value.

Research from Nationwide Building Society shows that adding a loft conversion or extension can significantly increase a three-bedroom home’s value – potentially by as much as 24%. This is especially true if the addition includes a new bedroom and bathroom. For example, a £350,000 home could see its value rise by about £84,000.

Building costs usually fall between £30,000 and £60,000, but the exact price depends on how big the build is, the quality of materials, and where you are located. Even with these costs, adding extra space can still be a good investment if it’s well-planned and creates useful living areas.

Be aware that you might need planning permission for extensions, and doing work could cause disagreements with neighbors regarding things like sunlight, privacy, or the noise and mess of building. If your project involves walls you share with a neighbor, you may also need a Party Wall Agreement.

2. Extra bedroom

How many bedrooms a house has is a major consideration for most buyers, so even small changes to create more bedrooms can significantly increase its value.

Experts estimate that adding a bedroom to your house can boost its value by about 13%, which works out to roughly £45,000 for a home currently worth £350,000.

As a film buff, I always look at how much a movie really costs versus what it earns. When a project falls in that sweet spot – between £10,000 and £25,000 – it often means the potential for a really great return on investment is there. It’s exciting to see a smaller budget film actually make money!

Be aware that if you own a leasehold property, you generally need written permission from the building owner or management company before making any significant structural changes. Similarly, if you own a shared ownership home, you’ll likely need approval from the housing association first.

3. Kitchen renovation

Kitchens and bathrooms are well-known for attracting buyers, so renovating your kitchen is a smart way to increase your home’s value and make it more attractive to potential buyers when you decide to sell.

Zoopla reports that completely renovating a kitchen can sometimes increase a home’s value by about 15%. For example, a £350,000 house could potentially gain £52,000 in value.

However, the cost of work can vary considerably, with estimates from Pricing Penguin suggesting:

  • Basic kitchen replacement (keeping layout): £5,000–£8,000
  • Mid-range fitted kitchen: around £12,000
  • Full redesign with layout changes: £25,000–£45,000+

Be careful when redesigning your kitchen layout, as moving plumbing and gas lines can significantly increase renovation costs. If you want to save money, try to keep the new layout similar to the old one.

Home improvements that add the least value

While some home improvements are great investments that increase your home’s value, others typically don’t offer a good return.

1. Swimming pool

While a swimming pool feels like a great perk, it usually doesn’t increase a home’s value much, and often concerns buyers due to the cost and effort of keeping it up.

Find out if equity release would work for you

Installing a swimming pool typically costs between £30,000 and £100,000, but homeowners often don’t get back the full amount when they sell their property. In fact, you might only recover 20% to 50% of the installation cost, depending on where you live and what buyers are looking for.

2. Garage conversions (in the wrong area)

Turning a garage into extra living space can increase your home’s value, especially in areas where people really want more room. However, if you’re in a city or place where parking is hard to find, losing a garage could make your home less attractive to buyers and even lower its price. So, whether or not it’s a good investment really depends on where you live and what people in your area are looking for.

3. Dramatic decor decisions

Making your home feel personal can definitely make you happier living in it, but very specific design choices might make it harder to sell later. Things like strong color schemes, unusual room arrangements, or heavily customized features could turn potential buyers off.

Room Outside points out that renovations don’t always pay off, as buyers frequently subtract the cost of updating or undoing personalized features when making an offer.

Authors

Melanie Wright

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2026-05-14 19:38