In this article, we’re going to look at which home improvements can add the most value to property prices. You may think that adding a conservatory or an extension would be the best way of attracting potential buyers and while it may be appealing to buyers, will you get value for money out of your investment?
On the other hand, getting a new boiler may seem like the kind of thing that wouldn’t make too much difference to the value of your home. It just sits in a cupboard, doing a valuable job but perhaps an unappreciated one (until it breaks). But you’d be surprised...
It’s natural to think more aesthetically pleasing jobs, like updating your kitchen or bathrooms would be the most effective way of increasing the value of your house. Surprisingly, some major home improvements like new bathrooms and kitchens will actually leave you out of pocket in terms of the value of your home.
The average cost of a new kitchen is around £7000 but it will likely only add £4000 to the property value, leaving you £3000 out of pocket. In addition, you have the danger of alienating buyers with what you would consider your quirky taste (not everyone wants wall to wall shiny red cupboards with polka dot tiles).
According to a study done by GoCompare the best investments to increase the value of your property are a new boiler, central heating and off-street parking, in that order.
Based on an outlay of £2000 for a new boiler, you can expect to see an additional £8000 added to your property price - a £6000 profit. The worst investment you can make is on a wine cellar, with an eye-watering £46,000 investment adding an equally eye-watering £0 value.
A swimming pool will add a disappointing £2000 on to your house price with an installation cost of £35,000 and with the maintenance costs to consider, it doesn’t look like the best investment.
New boiler installation
As well as the financial benefit of adding £6,000 to the price of your home, a new boiler adds security for you and any potential buyer. Nobody wants to spend money on a boiler, when people purchase a boiler it’s usually a distressed sale because an old boiler has broken down. When purchasing a home with a new boiler installed you have the peace of mind that you won’t have to worry about that particular spend for 10-15 years.
A new boiler doesn’t just add financial value to your home, there is value in having a boiler under warranty/guarantee for the next 2-12 years (depending on the boiler and what package you go for). A new buyer can relax knowing they won’t be stung with any unexpected repair bills, after an already expensive move.
Buying a property knowing that you will have to replace an expensive item like a boiler is quite offputting, it’s not an item many homeowners want to fork out for - so having a reliable boiler already installed is a big win in the eyes of potential buyers.
Energy efficiency
Another benefit of upgrading an old boiler to a more modern boiler is increased energy efficiency. Swapping an old back boiler to a modern condensing boiler can see you increase your energy efficiency by 30-50%. This can lead to savings up to £315 a year if you’re replacing an older boiler, a good saving for you or a potential buyer to enjoy.
Often, when replacing an older boiler, other heating system components are also updated with more modern alternatives that can add to the saving. Thermostatic radiator valves replace traditional valves, giving you added control over the radiator temperature in each room, so you can turn it down on unoccupied rooms and save even more on your heating bill.
In addition to thermostatic radiator valves, you can also add smart thermostats. These little gadgets allow you to control your heating remotely from your smart device (mobile phone/tablet/Alexa). This added control means you can get the temperature just right and it gives you the ability to make sure the house is warm when you return home.
Some smart thermostats, such as the Nest Learning Thermostat, even learn your behaviour - when you’re home, what rooms you use at what time and they can adjust the heating automatically based on their learning to help save you money and to make sure your heating is on when you need it.
Other ways to add value
Installing a new boiler is the best investment in terms of the resale value of your home but there are plenty of other ways to add value to your home if you’re thinking about selling, or even if you just want to improve your home. If the housing market is in a lull you can make improvements and enjoy the benefits while you wait for the market to recover.
From structural improvement to rewiring or adding an extension or a loft conversion, there are plenty of ideas to increase the value of your home. There are plenty of home improvements that can be done for free (other than a bit of hard work). Jobs like improving the aspect of the garden or painting interior or exterior walls can make a big difference in terms of saleability. DIY is still an extremely popular hobby for many people, those who are handy and those who wish they were a bit handier. There are plenty of jobs you can have a go at that aren’t too difficult, but it’s important to know when you have reached your limit and need to call in the professionals.
Conclusion
Adding a new boiler may not be the first thing you think of when looking to add value to a home but hopefully, now you can understand just how valuable a new boiler can be to potential buyers.
Although a new boiler can be an expensive item, ranging in price from £1500 - £4000 for more complicated installations, there are many companies that offer finance on a new boiler, allowing you to spread the cost to an affordable monthly amount. This can often cost less than monthly service plans, making replacing your old boiler a no-brainer.
Just be sure to stay away from tennis courts and wine cellars and you should be able to add value to your home. Be careful to keep to neutral colours and don’t go for anything that’s a very personal reflection of your tastes.
