ONS Data: Home Renovations Add Value

Those of us in the home construction industry are known to tell our clients that home renovations add value to their properties. Sometimes we are met with scepticism. That is understandable. However, we can now confidently say that statistical data proves such assertions are true. Doing certain kinds of home renovations does add value to a home in most cases.

The Office for National Statistics (ONS) has released data that shows, based on the amount of square footage, what properties are worth in each of the local authorities in England and Wales. When this data is plugged into a calculator for the purposes of determining the value of home renovations, it returns some surprising numbers.

According to the calculator found on the ONS website, adding an extension of 25 square metres adds an average of £59,000 to the value of a typical home. In higher value areas, like choice London boroughs for example, that same extension would increase the value of a property by an average of £169,000.

Extensions vs Renovations

Honesty requires us to remind readers that the ONS tool deals primarily with extensions that add living space. Furthermore, any numbers returned by the calculator are just estimates based on current data sets. There is no guarantee that any one particular home will realise an increase in value as a result of any extension.

With all that said, averages mean something. If the average home would see a significant increase in value by undertaking certain kinds of renovations, chances are that your home would benefit as well. Your home is likely an average home unless there are some extenuating circumstances that create downward pressure on its value.

As for renovations vs extensions, the same kind of value proposition exists. Just like more living space adds value to your home, renovating existing space to make it more functional and aesthetically pleasing adds value as well. Remember this: the value of your home is dependent almost entirely on market forces. Your home is as valuable as the price it can fetch on the open market.

We have long known that home renovations add value to property. Now we have some solid data to back up that knowledge. If you have been looking to add an extension or otherwise renovate your home, the prospect of adding value could be just the motivation you need to move forward.

Sources:

1. Homes & Property – https://www.homesandproperty.co.uk/property-news/how-much-will-an-extension-add-to-the-value-of-your-house-a114531.html
2. ONS – https://visual.ons.gov.uk/will-an-extension-increase-the-value-of-my-house/