Assetz® News - Kitchens are the key to saleability

Kitchens are the key to saleability

3rd March 2006 |

As property investors look to outdo each other in the search for the most impressive capital gains, it has been revealed that installing a new kitchen may be one of the most sensible options.

Increasingly, investors are seeking out bargains by finding houses in need of a little DIY. The subtlest of modifications can add a great deal to the value of a property in a competitive market and independent estate agents Spicerhaart has investigated the chief tactics employed.

Unsurprisingly, the primary aim must be to create or give the impression of extra space. Accordingly, adding an extra bedroom, a loft conversion or creating extra living space can add significant value to the average house and it is something investors are finding is paramount to maximising profits.

Adding a new bedroom, for instance, is thought to add £20,000 to the value of a property, while a loft conversion can pump the value up by around £18,000. Conservatories are also useful in getting the most out of buyers, with £10,000 often added to house value.

While an impressive new kitchen may cost between £2,000 and £3,000, Spicerhaart found that it could add as much as £6,000 to the figure a buyer is willing to fork out and it is a statistic that property developers and investors cannot afford to ignore.

Because adding a new bedroom will cost a great deal more, 70 per cent of the agents interviewed by Spicerhaart said that the new kitchen is the best policy to increase the value of a house.

A similar percentage of the surveyed agents decided that a simple revamp of décor is the wisest option, with many property investment projects underperforming because of this fundamental and easily-amended problem.

More extravagant additions such as a gym or swimming pool are less worthwhile, however, and will generally add very little to the value of a property. By introducing features that appeal to a very select portion of the buying market, the seller is needlessly alienating many prospective house buyers.

Russell Jervis is the managing director of haart estate agents and he has concluded that investors need to pay much more attention to these crucial home improvement factors.

"Although the housing market is currently a lot more buoyant, homeowners that want to achieve the full asking price on their properties still need to pull out all the stops as buyers remain very price sensitive," he warned.

"An experienced property developer will always have at the forefront of their mind what type of feature will appeal to the mass market and consequently add the most value to their home. The results from this survey should be a useful guide for homeowners to cash in as much as possible from their renovations," he added.

On the other hand, it is worth remembering that UK residents are notoriously over-ambitious in their DIY projects and Mr Jervis has stressed that it is important not to take on a job that will be completed to an inadequate standard.