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Insurance

Brits use extensions to boost house prices

Adam Williams
Written By:
Adam Williams
Posted:
Updated:
27/05/2015

Adding an extension to your property could significantly boost its value, research from Direct Line has suggested.

The insurance firm said in London the average price difference between a two and three bed property was £157,202. The average cost of an extension was £35,000, meaning homeowners could make more than £100,000 by adding a further bedroom.

In areas with lower house prices, such as Scotland, the asking price difference in Scotland between two and three bed properties is £45,949. With lower building costs in these areas homeowners are still able to profit by extending then selling.

A survey of building firms found almost half (47%) said extensions were the most popular type of home improvement at present.

Some 70% of projects were completed within the budget and timeframe originally quoted, although loft conversions were the home renovations most likely to go wrong.

Other popular choices for homeowners include installing skylights to make rooms feel more spacious and installing large bi-folding doors in the property.

Changing bathrooms (26%) and kitchens (19%) were also likely to cause problems.

Katie Lomas, head of Direct Line Home Insurance, said: “Extending homes or converting rooms to add light and space can add real value to a property, so can be worth the investment. With the rising cost of house prices making it expensive to move, home improvements are a popular way to improve your living situation without breaking the bank.

“Homeowners should take note of the advice provided by builders, as spending a bit of extra time ensuring that they have an agreed plan and budget in place may significantly limit stress levels further down the line. Having good home insurance is important, as improvements and changes to your home can impact your policy.

“Make sure you inform your insurer of any improvements you are planning before you make them, as you may need to increase your cover or abide by additional exclusions, for the duration of the building work.”


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