3 home improvements that add the most value (and 3 which won't) as some renovations recoup less than 80% of cost

Not all home improvements are equal when it comes to boosting the value of your property.

While some renovations have the potential to significantly increase your home’s value, others may add far less than they cost, or even reduce the appeal of your home to future buyers.

Some popular renovations recoup less than 80% of their cost, making it really important to consider whether a project is primarily for your own enjoyment, or a genuine investment in your property’s future value.

Here are some of the home improvements that are most likely to add value and those that could end up being a costly mistake.

Home improvements that add value

1. Loft conversion or extension

Adding extra space is one of the most reliable ways to increase your property’s property value.

According to analysis by Nationwide Building Society, a loft conversion or well-designed extension can boost the value of a typical three-bedroom home by up to 24%, particularly where it adds a bedroom and bathroom. On a £350,000 property, this could mean an uplift of around £84,000.

Typical build costs range from £30,000 to £60,000 depending on size, specification, and location. In many cases, this can still deliver a strong return on investment if the additional space is well designed and adds practical living accommodation.

Watch out for: Planning permission may be required, and extensions can sometimes lead to neighbour disputes over light, privacy, or construction disruption. A Party Wall Agreement may also be needed if work affects shared structures.

2. Extra bedroom

The number of bedrooms a home has is one of the most important factors for buyers, meaning even modest reconfigurations can deliver strong returns.

Industry analysis suggests that adding a bedroom can increase property value by around 13%, or approximately £45,000 on a £350,000 home.

If the work costs between £10,000 and £25,000, that means the return on your investment can be significant.

Watch out for: Leasehold properties typically require written permission from the freeholder or managing agent before structural changes. Shared ownership homes may also require approval from the housing association.

3. Kitchen renovation

It’s often said that kitchens and bathrooms sell houses, so fitting a new kitchen can be a good way to boost your property value and make your home more appealing to buyers when you come to sell.

According to Zoopla, a full kitchen renovation can add around 15% to a property’s value in some cases. On a £350,000 home, this amounts to a potential £52,000 increase in value.

However, the cost of work can vary considerably, with estimates from Pricing Penguin suggesting:

• Basic kitchen replacement (keeping layout): £5,000–£8,000
• Mid-range fitted kitchen: around £12,000
• Full redesign with layout changes: £25,000–£45,000+

Watch out for: Changing where everything goes in your kitchen can substantially increase your costs as it may involve re-routing water and gas pipes so, if possible, keep the layout broadly the same to keep renovation bills down.

Home improvements that add the least value

Although many home improvements can boost the value of your home, there are some that usually won’t.

1. Swimming pool

A swimming pool might seem like the ultimate luxury, but it typically adds the least value to a property, with many people worried about ongoing maintenance costs.

Find out if equity release would work for you

According to extension specialists Room Outside, a swimming pool can cost between £30,000 and £100,000 to install, with many homeowners only recouping a fraction of that investment when they come to. In some cases, returns may be as low as 20–50% of the installation cost, depending on the property location and buyer preferences.

2. Garage conversions (in the wrong area)

Converting a garage into living space can add value in some locations, particularly where additional living space is in high demand. However, in areas where off-street parking is in high demand, such as in city locations, removing a garage can reduce buyer appeal and potentially lower overall property value. As a result, returns vary significantly depending on location and local demand.

3. Dramatic decor decisions

While personalising a home might boost your enjoyment of it, highly specific design choices may deter future buyers. Examples include bold décor schemes, unusual layouts, or highly customised interior features.

Room Outside suggests that such renovations can significantly reduce return on investment, with buyers often factoring in the cost of redecorating or reversing personalised changes when they submit an offer.

Interested in selling your car? Find out how much it is worth