Are renovations the doorway to profit?

Are renovations the doorway to profit?
Our study shows that homeowners believe by investing in décor and bigger renovation works they are adding value to their homes for future years

The latest research from Co-op Insurance has revealed that 91% of homeowners think their house value has increased since they bought it - by an average of £33,125.

The study which questioned 1,000 UK homeowners has found that 31% of homeowners bought their property with their eye firmly on how much money they could make from their investment. Of these, a reliance on house prices increasing generally was the main way (62%) homeowners were hoping this would happen.

Location was also a key deciding factor with over a third (34%) buying in an already desirable area whilst 32% of people did their research and sought out properties in areas classed as ‘up and coming’. Whilst 29% bought a home in clear need of renovation.

Changing rooms is a common theme, with 76% of homeowners in the UK making changes to their property since they moved in.

Of these, 60% believe the renovation works they’ve completed has led to an increase in value. On average, the renovation and decorative work that homeowners have invested in came to £18,224. This means that, on average, homeowners are seeing a £14,900 profit as a result of these works.

Homeowners in London have seen the biggest average rise in profit thanks to renovation and decorative works with 94% believing their property has increased in value by £21,499. However in Northern Ireland, despite 78% of people thinking their value has increased, it doesn’t look to be down to décor or renovation work, with an average loss of £205 being recorded when you compare spend on renovations versus potential value increases.

Kitchen is king when it comes to the rooms homeowners should renovate if they are looking to entice new buyers, with 56% believing it is this room that really sells a home. For a quarter of buyers, the living room is the second most desirable selling feature of a home. Bathrooms, whilst third on the list when it comes to saleability, are only important to 4% of homebuyers according to the research.

Over three quarters (76%) of homeowners have made changes to their homes since they bought them with décor being the most popular choice to spruce up a new pad (73%), followed by, the often more expensive, refitting kitchens (67%) and bathrooms (65%).


Caroline Hunter, Head of Home Insurance at Co-op, said: “Our study shows that homeowners believe by investing in décor and bigger renovation works they are adding value to their homes for future years.

Kitchens have long been lauded as the heart of the home and our study continues to solidify this, with over half of homeowners believing that this is the room of the house that could make, or break, a sale.

Whilst they are a big draw for prospective buyers, they can be expensive, therefore it’s important to revisit your home insurance policy to ensure you have the right level of cover in place during the building works, to protect you from additional risks during the work. Don’t assume your builder will have insurance in place that covers you in every eventuality.”

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Latest Comments

Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

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Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

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Chris
Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

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Christian Donovan
Christian Donovan 18 Aug 2017

The write-down on house values, combined with the fall in the GBP saddled the fund?s property portfolio with a 1.4% loss in the second quarter. The shocking amount of $240 million.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

It depends on the people, some older adults decide to make a long-distance move in order to live closer to their children or settle in a place with a lower cost of living.

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brandonlee10
brandonlee10 24 Jul 2017

The financial ramifications of the triggering of Article 50, the starting gun for Britain's departure from the EU, are far from clear. Buyers will be most cautious in London, given that buying a home in...

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IrisJ.
IrisJ. 19 Jul 2017

Great advice, but may I also add that when buying an already built home, make sure you do all of the proper inspections. Most importantly pest inspection because people tend to get surprised when they

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IrisJ.
IrisJ. 17 Jul 2017

The third point is, in my opinion, the most important one. People have become too inconsiderate and careless when it comes to rented properties. If a landlord wants to protect their property, regular visits...

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cornishalan
cornishalan 10 Jul 2017

Added to the cost of purchasing these village properties are the above average maintenance costs. Particularly where the property is a listed building or requires specialist building skills such as thatching...

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