Research published this week shows that spending some time and money on your buy to let properties can uplift rent, as well as the value of the property. This is backed up by a leading estate agent in Rugby, Cadman Homes.
A building society is advising Landlords that by extending their buy-to-let properties or adding bathrooms or a bedroom can increase the value by 20 per cent. The most “valuable” add-ons are either loft conversions or extensions and according to the building society an extra bathroom increases the overall value on the property by 5 per cent, whilst incorporating another bedroom should secure an extra 10 per cent.
The Research carried out shows that house buyers will in most cases pay more for any additional space within a property. Generally by increasing the availability of extra floor space by 10 per cent increases the value of the property by 5 per cent.
It should also be pointed out that an additional advantage is that all improvements within a property can be taken off any capital gains tax on the extra charged gain, when it is sold.
Robert Gardner, the building society’s chief economist, said: “We re-examined the factors that affect the value of homes, and the potential to add value.
“Having more useable space is generally thought to be consistent with better quality accommodation and people are prepared to pay for it. A 10% increase in floor space, other things being equal, adds 5% to the price of a typical house, whilst adding space equivalent to the size of a typical double bedroom to a two bedroom house can add around 11% to the value.
“A second bathroom also remains a favourite amongst homeowners and our research shows that creating an additional bathroom can add 5% to the value of the average house”.
Homeowners that add a loft conversion or extension incorporating a double bedroom and a bathroom can add about 20% to the value of a three bedroom, one bathroom house.