Elizabeth Colman
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Estate agents are urging homeowners to restrict home improvements to a paint job or a garden makeover rather than building a new kitchen, as costly extensions could leave them up to £20,000 worse off.
As house prices slump there is no longer any guarantee that costly renovations will result in a corresponding increase in a property's value, according to research from Abbey.
The bank found that almost a third of estate agents have changed their advice in the past 12 months when it comes to home improvements.
Phil Cliff, director of mortgages at Abbey, says: “Having previously advised homeowners that improvements such as new kitchens and bathrooms were worthwhile, they now believe that homeowners are unlikely to recoup the money spent when their properties sell. Declining house prices mean that other, previously profitable improvements, such as extensions and new kitchens, are now expected to leave homeowners worse off.”
A new kitchen, for example, could cost £18,700 to build but would add only £4,894 to the value of the home, leaving the homeowner £13,806 out of pocket.
A loft or basement conversion could cost £22,600 but add only £13,038 to the sale price – a loss of £9,562.
Other extensions, such as adding a room at a cost of £33,800, would boost the value of the property to £13,568, leaving the homeowner £20,232 worse off.
"Cosmetic” home improvements, however, such as painting and decorating, can still add as much as £2,227 in value after costs.
For a full rundown of home improvements and how much they could cost you, go to The 10 home improvements that add most value.
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thing is people want a house they can live in for a couple of years before decorating to their own tastes. Spending the suggested sums on improvements is madness even if you intend you live there, unless you have a million pound house! Well presented houses command better values even now!
kevin, sleaford,
A generation of deluded men (yes boys) have purchsed properties, ruined them and sold them on at a profit due solely to house price inflation alone. They remain convinced of their immense 'property developer' talent. Their profit margins would have been higher (and Britain prettier) with no work.
Eric Skelton, Cardiff, Wales
I agree, I have always spent money on my homes to suit my taste as it is my home. I have probably overspent in the view of a lot of commentators - as it is not 'worth' doing or I will not recover the money. I have done it always for me becuase I wanted to do not becasue I will get the money back!
Simon, London,
Not everyone is thinking about how much extra profit they will make when they sell. Of course it's still worth getting a kitchen or bathroom done if you have the money. If it's going to make living in the property better for the owners then it's worth doing.
Paul, Perth, Australia
I coudn't agree more, fitting 'new' kitchens and bathrooms, other than those in the most dilapidated state, to sell a house is really a waste of money. I have moved 4 times in 12 years and have replaced the kitchen and bathroom to suit our own taste on each occasion. Better to just re-decorate.
pw, Croydon, uk
Unbelievable
If I want a nicer bathroom or kitchen I'll buy one thank you very much.
The vested interests have completely lost touch with reality and what houses are really for i.e. living in.
Gareth Jones, Dusseldorf, Germany
As a Central London estate agent I agree that this article is a load of old tosh. The key to selling a property is to make it look better value than the others, and keeping it in taste with the mass market demand will help this. You can carry out these improvements much more cost effectively too.
Tom Harvey-Bolton, London,
Um, what about improving you home because you want to live in it and enjoy the improvements that you have made, for many years to come. Any financial benefit to the house price considered an added bonus.
I know this is an alien concept for the greedmeisters, but you should try it some time.
MikeTheCynic, Taunton, UK
Belive it or not, for many people a house is not just a (long-term) investment, it is also a home.
Not every penny spent on improvements is viewed as an exercise in capital growth, but is often done for personal preference or as a cheaper alternative to moving from a much loved home.
Simon, London,
So estate agents are urging sellers not to improve their homes? And then, sellers don't have to worry about buyers being fussy in the current market? Oh dear. No wonder estate agents get a reputation for not being very bright.
Barry, London, UK
I have been in the kitchen industry for 22 years, and people can feel assured that the average value of kitchens is no where near £18,000. It is more likely to be around 6,000 - 7,000. It is also proven that newly fitted kitchens sell houses. Is that not the real issue here?
JONATHAN, Crewe, Cheshire
Be serious, look at some of the prices quoted here.
£18,700 on a new kitchen - custom built out of marble?
£14,000 on a garage - an airconditioned double?
£20,000 has covered me for a whole house, bathroom, kitchen, re-wire, windows, boiler, driveway and all rooms decorated, all good quality.
Chris, Wales,
Common sense at last, instead of buying a place that has a new kitchen that is not to your taste, you may be able to buy the house cheaper and choose your own.
diana, derby, uk