Despite the steep increase in many construction materials over the last year homeowners can still add almost £60,000 to the value of their property by tackling the right projects when it comes to increasing the size of their home.
Analysis of Government data by HaMuch shows that some of the most common building materials associated with extending a property have seen a considerable increase over the last year.
For example, the cost of plastic products, such as pipes and fittings, have soared by +18% over the last 12 months.
Cement and concrete products have also seen a significant cost increase. The price of precast concrete blocks, bricks, tiles, and flagstones has gone up by +6%; and ready-mixed concrete prices are up +5%.
COST INCREASES
Meanwhile, insulation materials have seen a cost increase of +3%, and so has the price of aggregates such as gravel, sand, and clay.
Overall, 15 of the 28 construction materials HaMuch analysed have become more expensive in the past year.
ADDING VALUE
As a result, HaMuch estimates that the average cost of extending a property now sits at £48,000 for an extension of 20 metres squared.
This is a significant investment for a homeowner, but it’s one that does still add value, with such an extension estimated to boost property prices by 20%.
“Allowing for the cost of the extension, this leaves homeowners with a profit of £10,366.”
Based on the current average UK house price of £291,828, this additional +20% is equivalent to £58,366 in additional market value. Allowing for the cost of the extension, this leaves homeowners with a profit of £10,366.
However, there are ways to add even more value to your home without having to invest as much money to do so.
VALUE BOOSTING
For example, the average loft conversion is estimated to cost homeowners £40,000 to implement. Not only is this cost lower than a full-blown extension, but it’s also thought to add 20% in value to your home.
That’s a value boost of £58,366, but due to the slightly cheaper price of completing a loft conversion, homeowners can add real value to the tune of £18,366.
But homeowners don’t need to be spending upwards of £40,000 to add great value to their property. A garage conversion costs an average of just £15,000 but still adds an average of +10% to the property’s market value which is equivalent to £29,183. This means the homeowner is generating an attractive profit of £14,183 from a relatively small initial investment.
HEAD SCRATCHING
Tarquin Purdie, Founder and Chief Executive of HaMuch.com, says: “Christmas is coming and with family and friends visiting more frequently, this will inevitably leave many homeowners scratching their heads on just how they can increase the size of their home.
“Unfortunately, the cost of many materials has increased in the last year alone and this will ultimately drive up the cost of any plans to extend.”
LOWER BUDGETS
“However, there are ways to boost the size and space of your property without investing heavily to do so. Whilst you might not have the sizable budget, or space, required to implement a full extension, a garage conversion is one project that can be done for a fraction of the cost.
“What’s more, it not only adds more space for a lower budget, but it will also add more value to your home overall once construction costs have been deducted.”
