Transforming a garage into a home gym is one of the cheapest home renovations that can add up to £20,000 to a property's value. According to Gerard Boon, managing director at Norwich-based Boon Brokers, these conversions typically cost around £10,000 but can increase value by £15,000 to £20,000 if the space becomes highly functional for family use.
Garage and Loft Conversions Lead in Return on Investment
Boon noted that homeowners often use garage conversions to add an extra bedroom for children, with a typical cost of £30,000 adding £50,000 in value. “For return on investment, garage conversions and loft conversions are often the strongest performers because they create additional usable living space at a lower cost per square metre than building a brand-new extension,” he said. For homeowners wanting extra family space without a major budget, a single-storey rear extension is often the most reliable option to add value.
Nationwide Data Confirms Value of Extra Space
Andrew Harvey, Nationwide's Senior Economist, commented on the figures: “We’ve used our house price data to look at the factors that affect the values of homes as well as the potential to add value. While we can’t identify the value associated with kitchen and bathroom renovations, we are able to explore the impact of more substantial projects, particularly those which increase the size of the property.” He added that location remains key, but factors like the number of bedrooms are also important to homebuyers. Home improvements that increase the size of the property, such as an extension or loft conversion, remain a compelling way to add value.
Floor Space and Bedrooms Drive Price Premiums
Harvey explained that 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, all things equal, adds 5% to the price of a typical house. However, analysis suggests that additional bedrooms are key to adding value. For example, adding space to create an additional double bedroom can add 13% to the value of an existing two-bedroom house. Homeowners that add a loft conversion or extension incorporating a large double bedroom and bathroom can add as much as 24% to the value of a three-bedroom, one-bathroom house. Providing the room is useable, this can be a good way to increase the value of a property.
