How to Raise the Price of a House

In the current climate of a rebounding property market, property prices under pressure and changing laws surrounding Capital Gains Tax, you might wonder how you can effectively raise the price of your house.

You might think about selling your property to purchase a new one or pursue other opportunities. Some sellers have been forced to accept lower offers recently, with asking prices falling by more than £5,000 in August 2024, according to Rightmove.

But there are a few things you can do to maximise the value of your assets. This blog will consider different ways how to raise the price of a house.

Source: This is Money

How to Raise the Price of a House With Extra Space

Ever since the start of the pandemic, there has been a much discussed ‘race for space’. More and more people are working from home on a regular basis. For that reason, renters and buyers alike sought properties which could provide them with as much square footage as possible.

By converting a garage, for instance, you can add an extra reception room. Depending on the location of the garage, this could provide the ideal space for a home office or a children’s playroom. Both options could immediately increase the appeal of the property. Indeed, estimates suggest a garage conversion could add up to 20% of value to a home.

Similarly, you could convert a property’s loft to increase the number of bedrooms. For the most part, these conversions do not require planning permission (although this should be checked). Yet, they could add a further 20% to your property’s value.

Building a conservatory is another way in which you can add space to your property. Despite the initial outlay, conservatories can potentially increase the value of a home by at least 5%.

Finally, a lesser recognised conversion that you can make to raise the price of a house is to convert a front garden into a new/extra parking space, or to create off-road parking. An additional parking space could raise a property’s value by between 5% and 10%.

Source: Get Agent, Real Homes, The Guardian, SEH BAC

How to Raise the Price of a House With Renovations

Creating new space is not the only option to raise the price of your asset. You can also make the best of the existing space through renovation projects.

As the heart of the home, there is no better way of raising the price of a house than by renovating your kitchen. In their simplest forms, kitchen conversions could entail upgrades to cabinet doors, tiles, or worktops to give the kitchen an immediate facelift. These kinds of tweaks alone could raise the price by as much as 10%.

At the opposite end of the scale, if budget allows, you could consider extending the kitchen, as well as renovating it. By increasing floor space, and creating an open plan environment, you can expect your home to potentially grow in value by another 10%.

Another important room of the house, the bathroom, has a crucial role in determining the price of a house. So, it’s worth considering if you can make improvements here.

By giving the bathroom a lick of paint, new tiles, modern sink and bath, or shower unit, or investing in some neat features like built-in electric toothbrush charging stations, you could raise the price of your house by around 4% or 5%.

Source: The Property Centre, Yopa

How to Raise the House Price by ‘Going Green’

In recent years, the topic of climate change has been intertwined with the UK property market. As 40% of UK emissions come from households, more to be done to improve the energy and carbon efficiency of many homes across the UK.

It is perhaps not surprising, that ‘green’ homes are increasingly in demand among both renters and prospective buyers. In fact, recent research found that 82% of buyers would pay more for an energy-efficient property, while properties with energy-efficient features sell with a premium of £40,000.

The cost-of-living crisis, which has been driven by a rise in energy bills, will likely only heighten interest in energy-efficient properties. Therefore, by replacing old light bulbs with LEDs, swapping out old boilers for new condensing ones, cutting down on draughts, or insulating your walls, you can increase the property’s profitability, as well as its sustainability. This will likely contribute to higher house prices in the years to come.

Finally, double-glazing the windows of a property is a sure-fire way of increasing energy efficiency. 18% of renters say that they would pay more rent if new windows were installed. Therefore, such refurbishments could increase both a property’s earning potential via renting and sale.

Source: Buy Association, Your Money

How to Find the Right Finance to Increase House Value

Some of these changes will be relatively affordable. However, for others, especially in the current climate, extra capital will be needed.

As such, you could consider green home grants or working with specialist finance providers to help get the ball rolling. The challenge is finding a lender with a proven track record of financing renovations, refurbishments, and conversions.

When taking on a refurbishment project, it’s important to understand your financial options. Specialist lending can help complete renovations in a timely manner, as funds can be with you in as little as three days.

Alternative finance, such as bridging loans, can provide you with breathing space to buy, refurbish and refinance or sell the asset at a higher value by waiting for the right buyer. Additionally, you can also raise finance for works through a second charge bridging loan.

We have plenty of experience with these kinds of refurbishment loans. We work alongside you or your broker, to meet deadlines and ensure your project is able to get started. By underwriting from day one of the application process, we can offer you incredibly flexible financial products, even for complex cases that other lenders might shy away from.