A new study from Plentific reveals that homeowners in the UK believe that they can make a significant profit on their property through home improvements.
The survey, conducted by Opinium, found that 35% of homeowners in the UK think they could make a profit on their property from a £50,000 investment in home improvements, such as decoration, extensions and renovations.
Could You Make a Profit on Your Property with Home Improvements?decoration, extensions and renovations.
However, just 10% of the respondents expect home improvements to increase their property’s value by £75,000-£100,000. Lower profit expectations were forecast from homeowners in Wales, Scotland and northern England, with almost half saying they do not expect a £50,000 increase in their property’s value.
Homeowners in London and the South East were most confident, with around half expecting a return on improvement costs.
Half of homeowners in the capital expected to make a return on their £50,000 investment, while 21% predicted an increase of £75,000-£100,000 on their property’s value. Some 10% of homeowners in Bristol and London believe that they could see a rise of over £100,000 in house price following a £50,000 investment.
The survey also looked at the reasons why property owners make home improvements. It found that a huge 79% are more interested in improving living space, while just 17% are hoping to increase their property’s value.
Young first time buyers – those aged under 34 – expressed more of a desire to make money on their improvement projects, with 32% carrying out renovations to increase their property’s value.
The co-founder of Plentific, Cem Savas, comments: “Our latest consumer research highlights homeowners’ confidence in the value of home improvements. It does also paint the picture that young owners and those in the South East are more fixated with increasing property values. This isn’t a surprise considering the rise in recent times, highlighted this week in the ONS House Price Index, which revealed that properties in the South East had an annual growth of 12.8%.
“A home is an asset, but the majority of homeowners undertake home improvements simply to improve their living space and home life.”
As a landlord, making home improvements could increase both your rental income each month and your property’s value when the time comes to sell. If you are looking for a financial boost, invest in some renovation work!