A few days ago, I stopped by a friend’s house—he was busy painting his newly built garage. As we caught up, he mentioned how they’d been extending and improving their home for two years. As a finance director, he knew that not every penny invested would show up in the home’s value. And he was right.
That conversation inspired this article, because:
- Too often we assume:
current value + cost of the extension = new value
❌ It’s rarely that simple. - Being aware of this doesn’t mean you know how to assess added value accurately.
- If you’re planning work, let’s make sure it brings both joy now and long-term value.
What Actually Drives Home Value?
There’s a lot to unpack. Let’s start with the basics.
At its core, your home’s value is shaped by:
- Location (you can’t change this!)
- Usable square footage
- Condition, style and presentation
And here’s the secret: the market defines value—not the homeowner or agent. We can only estimate a price range using comparable sales, £/sq ft, and broader trends.
Know Your Buyer—Even If You’re Not Selling
Why think about buyers if you’re not selling? Because your future sale starts today.
If you’re about to spend £50k improving your home, shouldn’t you know who it’s likely to appeal to? That helps you choose finishes, layouts, and features that boost perceived value instead of accidentally limiting it.
Start by asking:
- Who were you when you bought this house?
- What did you need then?
- Have the area or buyer demographics changed?
From there, you can define a profile and make smart decisions. If your ideal buyer is a professional family with young children, a glass-walled home office won’t appeal. But a well-designed, multi-use loft might.
So, What Works and What Doesn’t?
Here’s a look at the most common projects and their typical impact on value:
âś… Extensions (Done Right)
More square footage usually adds value—but only when the space makes sense and feels cohesive.
💡 Loft conversions, garage conversions, and single-storey rear extensions tend to perform well—especially when they enhance how the home flows.
đźš« But beware of layouts that only suit you (e.g. a second kitchen, oddly shaped dining areas).
🛑 Conservatories can be tricky: cheaper to build, yes, but often impractical, too hot/cold, and not really “living space.”
🛠️ Upgrading the Standard
Bringing a home up to the local average (or slightly above it) can increase its perceived value—and help it stand out.
But there’s a ceiling. Putting £50k marble bathrooms in a street of £350k homes? You won’t see that money back.
Stick to improvements that:
- Add modern convenience
- Improve light, flow, and comfort
- Keep you in line with area expectations
🔧 Renovating Core Spaces
Renovating kitchens and bathrooms rarely boosts the price on their own—buyers expect these to be functional and clean.
But improving them can help sell faster or achieve closer to asking. Reconfigure layouts. Modernise lighting. Make them feel fresh, not flashy.
Pro Tip: Use Smart Staging & Strategy
It’s not just about bricks and mortar. Presenting the lifestyle your home offers—through thoughtful staging, great media, and a pricing strategy tailored to your ideal buyer—will have more impact than a pink render on your front façade. (Trust me. I’ve seen one.)
Final Thoughts
If you’re considering an extension or renovation:
🏡 Do it early—so you can enjoy the benefits
🧠Think like a future buyer
đź“Š Work with an agent who knows your local market and can provide a realistic plan
Whether you’re planning for the long term or thinking of selling soon, I’d be happy to chat. Book a free consultation or request a local market insight report here. Subscribe to The Prestige Collection Newsletter for expert property insights like this one delivered fortnightly.
References
- Connected Architecture Studio: connectedarchitecture.co.uk (contact us if you would like an introduction)
- Nationwide house price index: https://www.nationwide.co.uk/house-price-index
- Personalised market report: contact@lsproperties.uk
- The Prestige Collection: https://theprestigecollection.beehiiv.com/