According to Nationwide Building Society, adding an extra bedroom or bathroom to your home can increase its value by around 11%. In addition to these value enhancers, garages and central heating should also increase the value of your home. Also, if you own a detached bungalow, rather than a semi-detached house, your property could be worth 20% more.
Nationwide commented that any home improvements should be relative to the property itself. They suggested that adding a fourth bathroom to a two bedroom home would be unlikely to significantly increase value.
Our View
Home improvements can be a great way of making your home stand out from similar others, especially if you intend to sell and move. We would suggest having your home valued by a few estate agents and mention that you may improve the property before selling. Their opinion of the improved property will give you some idea of the profit you could make.
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