Posted on January 7, 2023 in Blog
Building an extension to your property adds value. Whether it’s the addition of a new bedroom, a loft conversion, conservatory or additional toilets, your house will be worth significantly more. The amounts will vary from property to property and will depend on various factors such as location, build quality and type of extension.
Note, you will also need to consider the cost of the building works. Adding £25,000 to the value of your property is great, but will not be as beneficial if you have spent £40,000 in the process. The Office for National Statistics can guide you on which parts of the country extensions are most profitable and how much you can expect the value of your home to increase by.
In Nottingham, a small extension (15m²) on average would cost you between £1,200 and £1,500 per square metre (sqm), and you can expect to increase your house value by £1,391 per sqm. Hence the importance of managing your costs and considering the full worth of your investment.
In central London, where property is at such a premium, the rules of extension pricing vary hugely. In Kensington and Chelsea, the cost is usually between £2,000 and £3,000 per sqm. However, you can expect to yield an added value of £17,988 per sqm, although it may be challenging to gain planning permission. As with all construction projects, in-depth research should be carried out throughout. The financial commitment and impact on your day-to-day life are important considerations when deciding whether extending your home is the best choice for you, rather than making internal changes or moving to a more suitable property.