More than 9 out of 10 UK homeowners believe that renovations and decoration can increase the value of a property.
That’s according to a recent study conducted by Co-Op Insurance. They found that 91% of those asked thought the price of their home had gone up. They also believe that renovation and decoration work were accountable for a £14,900 rise in the value of a property.
Additionally, the research found that 31% of homeowners purchase property, with the aim of gaining money from their investment.
Location and Renovation
Location proved to be a key deciding factor for many buyers. 34% bought their home in an area that was considered desirable. A further 32% said they did research before buying in an area that was dubbed “up and coming”. 29% of people bought a home that was in clear need of some form of renovation.
62% of homeowners relied on an increase in house prices as a way to make a profit on their property.
76% of those asked, said they had made changes to their property since moving in. A further 60% of those who completed the changes said they believe it added value to their property.
On average however, homeowners who have made changes to their property paid out over £18,000 on renovations, but only see a £14,900 rise in the value.
‘Our study shows that home owners believe by investing in décor and bigger renovation works they are adding value to their homes for future years,’ said Caroline Hunter, head of Home Insurance at Co-op.
‘Kitchens have long been lauded as the heart of the home and our study continues to solidify this, with over half of home owners believing that this is the room of the house that could make, or break, a sale,’ she pointed out.
‘Whilst they are a big draw for prospective buyers, they can be expensive, therefore it’s important to revisit your home insurance policy to ensure you have the right level of cover in place during the building works, to protect you from additional risks during the work. Don’t assume your builder will have insurance in place that covers you in every eventuality,’ she added.
It is worth thinking long and hard before making any serious changes. A different study has revealed that 25% of homeowners regretted their decision, with an additional 29% saying they’re too scared to make changes.
