LONDON, UNITED KINGDOM--(Marketwire - March 27, 2012) - With more than half of UK householders planning DIY projects over the forthcoming Bank Holidays, a new survey by HSBC has revealed that the potential increase in property value as a result of home improvements has dipped in the past year.
The annual HSBC Home Improvement Survey found that refitting or altering a home, although beneficial, may not provide the same level of financial return in today's market than may have been the case in previous years.
The survey found that 52% of house proud Brits plan to keep themselves busy making home improvements, including redecorating rooms and laying new carpet, during the Bank Holidays weekends in April, May and June.
Valuation experts deemed a loft conversion to be the best way to improve a property's value. The work will increase the value of a property by on average ?16,152 - 23% less than in 2011. A room extension will add ?15,665 (3% down), while a new kitchen will boost the value by ?4,577 (19% down).
The only major home improvement work to increase the relative return-on-investment in the past year is a new conservatory. The work will increase property value by on average ?9,420 - a 14% increase since 2011.
The survey also highlighted the regional variations of how home improvements can boost property value. A new kitchen in London will increase value by on average ?9,125, compared with ?4,300 in north-east England and ?2,333 in Scotland.
Valuation expert Paul Cutbill, of Countrywide Surveying Services, said: 'Whilst sensibly improved and well presented homes will generally be attractive to potential purchasers, rising labour and material costs mean that the gap between the cost of improving and monies realised at the point of any sale has been reduced.
'Poor quality refitting and lack of proper design considerations, often as a result of inadequate project budgeting and planning, can also have a significant knock on effect to any added value which might be gained when selling a property.'
Peter Dockar, Head of Mortgages at HSBC, said: 'Householders should think carefully about the type and extent of any improvement works being contemplated. Those which enhance living environment whilst retaining broad appeal should be favoured over more individually styled alterations.'
| Home improvements - what value do they add to a property? | ||||||||||
| Home Improvement | Average increase in property value (2011 survey) | Average increase in property value (2012 survey) | % change 2011 vs 2012 | Percentage of 2012 property valuers who stated no increase in value | ||||||
| Loft conversion | ? | 20,876 | ? | 16,152 | -23 | % | 3 | % | ||
| Room extension | ? | 16,069 | ? | 15,665 | -3 | % | 0 | % | ||
| Conservatory | ? | 8,233 | ? | 9,420 | 14 | % | 11 | % | ||
| New Kitchen | ? | 5,617 | ? | 4,577 | -19 | % | 16 | % | ||
| New windows | ? | 5,265 | ? | 4,866 | -8 | % | 14 | % | ||
| New bathroom | ? | 3,351 | ? | 2,955 | -11 | % | 19 | % | ||
| Redecorate house | ? | 3,229 | ? | 3,100 | -4 | % | 35 | % | ||
| Re-surface run up/drive | ? | 2,876 | ? | 2,679 | -7 | % | 35 | % | ||
| Re-carpet house | ? | 2,153 | ? | 1,738 | -19 | % | 40 | % | ||
| Regional breakdown | |||||||||||||
| Home Improvement | Average increase in property value (2012 survey) | London | South East | Yorks & Humber | East Midlands | South West | Wales | ||||||
| Loft conversion | 16,152 | 40,357 | 31,500 | 17,750 | 13,875 | 13,611 | 13,500 | ||||||
| Room extension | 15,665 | 52,813 | 20,200 | 11,938 | 13,550 | 11,800 | 12,222 | ||||||
| Conservatory | 9,420 | 43,889 | 9,950 | 6,000 | 6,636 | 7,500 | 7,300 | ||||||
| New Kitchen | 4,577 | 9,125 | 6,300 | 3,111 | 3,818 | 2,300 | 6,111 | ||||||
| New windows | 4,866 | 11,389 | 5,650 | 4,150 | 3,400 | 5,778 | 3,850 | ||||||
| New bathroom | 2,955 | 7,850 | 4,200 | 1,900 | 2,792 | 1,350 | 3,333 | ||||||
| Redecorate house | 3,100 | 10,700 | 3,575 | 1,000 | 3,708 | 444 | 2,375 | ||||||
| Re-surface run up/drive | 2,679 | 11,125 | 2,300 | 750 | 2,458 | 1,100 | 2,778 | ||||||
| Re-carpet house | 1,738 | 4,722 | 3,700 | 778 | 1,818 | 250 | 2,111 | ||||||
| The amounts represented in the table above are in British currency (?). | |||||||||||||
| Home Improvement | Scotland | North East | East Anglia | West Midlands | North West | ||||||||||
| Loft conversion | ? | 12,875 | ? | 10,450 | ? | 10,250 | ? | 10,200 | ? | 10,167 | |||||
| Room extension | ? | 12,500 | ? | 10,250 | ? | 9,850 | ? | 12,944 | ? | 10,000 | |||||
| Conservatory | ? | 4,125 | ? | 5,350 | ? | 5,450 | ? | 6,050 | ? | 4,900 | |||||
| New Kitchen | ? | 2,333 | ? | 4,300 | ? | 4,222 | ? | 5,300 | ? | 4,111 | |||||
| New windows | ? | 3,050 | ? | 3,300 | ? | 5,300 | ? | 4,900 | ? | 3,500 | |||||
| New bathroom | ? | 989 | ? | 2,150 | ? | 1,833 | ? | 3,550 | ? | 2,250 | |||||
| Redecorate house | ? | 950 | ? | 2,550 | ? | 1,600 | ? | 2,650 | ? | 4,020 | |||||
| Re-surface run up/drive | ? | 2,605 | ? | 2,800 | ? | 1,050 | ? | 2,100 | ? | 2,150 | |||||
| Re-carpet house | ? | 580 | ? | 1,550 | ? | 1,200 | ? | 1,580 | ? | 1,060 | |||||
| Top ten most popular home improvement jobs over the Bank Holiday weekends in April, May and June: | |||
| 1 | Redecorate rooms | 28 | % |
| 2 | Minor repairs (eg paint chips) | 23 | % |
| 3 | Repair fences & gates | 14 | % |
| 4 | Re-carpet rooms | 7 | % |
| 5 | Repaint/varnish front door | 5 | % |
| 6 | Install new bathroom | 4 | % |
| 7 | Lay decking or patio in garden | 3 | % |
| 8 | Install new kitchen | 3 | % |
| 9 | Insulate loft | 2 | % |
| 10 | Install new windows/install efficient boiler/insulate walls | 1 | % |
| (% shows amount of UK householders planning work) |
Notes to Editors:
Consumer sample:
- 1369 British homeowners (aged 18+).
- Nationally representative sample.
- Carried out online 15-16th Feb 2012.
Business sample:
- 112 interviews with estate agents who value properties as part of their job.
- spread across 11 regions (10 in each).
- Carried out by phone during February 2012.
For the latest updates, visit the UK Press Office social media newsroom:
http://www.hsbc.co.uk/newsroom
http://twitter.com/hsbc_uk_press
HSBC Bank plc: HSBC serves 16.1 million customers in the UK and employs approximately 52,000 people. In the UK, HSBC offers a complete range of personal, premier and private banking services including bank accounts and mortgages. It also provides commercial banking for small to medium businesses and corporate and institutional banking services. HSBC Bank plc is a wholly owned subsidiary of HSBC Holdings plc.
HSBC Holdings plc
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide from around 7,200 offices in over 80 countries and territories in Europe, the Asia-Pacific region, North and Latin America, the Middle East and Africa. With assets of US $2,556 bn at 31 December 2011, HSBC is one of the world's largest banking and financial services organisations.
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