Revealed: The property improvements that give the best and worst returns

 
Oscar Lopez
Average House Price In The UK Rises 8% In The Year
Redecorating your home may not be the best way to increase its value. (Source: Getty)

Adding a new boiler or installing central heating may not just keep you warm in winter - it may also heat up your property’s value, according to research from Gocompare Home Insurance.

The price comparison website has teamed-up with property expert Henry Pryor to calculate the home improvement projects that generate the best and worst returns on investment.

Gocompare have created a ‘property investment calculator’ which shows the average costs for common renovation projects, as well as their potential added value.

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According to the company, some of the most profitable projects for homeowners seeking to increase the value of their property include installing a new boiler or central heating system, making energy saving or home security improvements or creating off-street parking

By contrast, redecorating, laying new flooring or updating a bathroom may slightly increase the value of a property, however, the costs of doing so generally outweigh any potential profit.

Renovation for a property worth £225,621*

Average cost

Estimated property value increase

Estimated profit or loss

New boiler

£1,995.00

£9,024.84 (four per cent)

£7,029.84

Installed central heating

£4,250.00

£9,024.84 (four per cent)

£4,774.84

A garden make-over

£1,500.00

£2,256.21 (one per cent)

£756.21

Knocked through rooms

£1,750.00

£4,512.42 (two per cent)

£2,762.42

Installing double glazing

£8,450.00

£9,024.84 (four per cent)

£574.84

Paint and decorate

£2,500.00

£2,256.21 (one per cent)

£-243.79

New flooring

£2,200.00

£0.00 (zero per cent)

£-2,200.00

New bathroom

£4,250.00

£2,256.21 (one per cent)

£-1,993.79

Installing a new kitchen

£7,000.00

£4,512.42 (two per cent)

£-2,487.58

Installing solar panels

£5,000.00

£-4,512.42 (minus two per cent)

£-9,512.42

Meanwhile, a survey of over 1,000 Brits commissioned by Gocompare has found that 26 per cent of home improvements are undertaken specifically to add value to a property.

Read more: Revealed: The UK city where £1m properties sell fastest - it's not London

The research also determined the most popular renovations including: interior redecoration (53 per cent), fitting a new kitchen (42 per cent), replacing flooring (38 per cent), installing a new bathroom (36 per cent), and a garden makeover (36 per cent).

Property expert Henry Pryor said: “Most people who are thinking of selling their home or looking to improve it to add value will consider the merits of a trip to the DIY store.

“My advice is usually spend money on the things that you want and leave other improvements to the next person who may not share your taste.

“Getting planning permission to do the work is frequently the best investment you can make leaving the actual choice of layout, decoration and equipment to the next owner.

“Improving the green credentials of a house usually pays - a new boiler, insulation or energy saving measures along with security improvements will usually pay off but some additions like solar panels will be hard to get a payback on immediately.”

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