Will a Loft Conversion Add Value to My House?




will a loft conversion add value to my house

Affiliate Disclaimer

As an affiliate, we may earn a commission from qualifying purchases. We get commissions for purchases made through links on this website from Amazon and other third parties.

Although there are many reasons to consider a loft conversion, adding more space being number one on the list, many homeowners are motivated by the possibility of adding value to their house as an investment for the future.

A loft conversion which includes an extra bedroom can add between 15-20% onto the value of a house. This would mean for a property worth £300K a loft conversion could add up to £60K to its value against an average cost of £40,000 to convert the loft.

Should I convert the loft space to add value to my house?

The short answer is yes. And no.

Of all the reasons to convert the loft two stand out. The first is to increase the living space, usually with an additional bedroom, to accommodate a growing family and the second is to add value to the house for when it’s time to sell.

Move or Improve – The Financial Angle

House too small? Should you move or improve your current property?

It used to be a no-brainer.

A growing family? Need room for a home business? What do you do?

You move. Simples.

Once your house becomes too small for your family or activities, simply sell it, and buy a bigger property.

Like I said. It used to be a no-brainer.

Not anymore.

Moving home is now a very expensive business. According to industry experts, taking into account legal fees, surveys, estate agents commission, removals, and the 1001 other expenses you have – the cost of moving home can be anything up to £12,000.

Add to those expenses the substantially higher cost of trading up from, for example, a three-bedroom to a four-bedroom house (around £40,000 on average) it is easier to see why many home-owners are now deciding to stay put and extend their current property.

And the best way to do that is to convert your loft.

Loft conversions are the best way to make use of what used to be wasted space in your home – and it can add considerably to the value of your property.

By building a loft conversion not only can a home-owner increase the living space in his property but he can also add up to 20% to the value of that property.

Obviously there are other home extensions that can be built; a conservatory, a kitchen extension or even a garage conversion. But it is loft conversions that have consistently proved to be not only popular with homeowners but, just as importantly, with home buyers as well.

When you convert your loft you literally add a new dimension to the property and the versatility of adding a room to the previously wasted roof space shouldn’t be underestimated.

That place previously only used for storing long forgotten clutter can be turned into a luxurious bedroom or comfortable living space. You can even shove the kids out of sight into their own specially designed loft playroom.

The possibilities are endless which is why the question ‘should we move or improve’? No longer has to result in a trip to the estate agents.

What About the Money?

It varies. Regionally there are big differences in loft conversion prices (and of course house prices) and in how much cash a loft extension will add to the value of a home if it is later sold after you convert your loft.

Unsurprisingly, the biggest gain is seen in London but the same pattern applies to the entire country.

It should be remembered though that the figures bandied about by this research are not set in stone and inevitably there will be some generalisations and anomalies but the bottom line is that by choosing to convert your loft you will increase the value of your home.

And it just keeps on getting better.

Other figures show that a loft conversion which incorporates a bedroom and bathroom can add up to 20% to the value of your home with even basic conversions sending the value of a property rocketing. Literally through the roof.

Another good reason to finally make up your mind and start planning for that loft conversion you have always wanted.

A quality loft conversion will add value to a house but…

As with every home improvement project, be it a new kitchen, conservatory or decking in the garden, if the project is badly planned, poorly executed or simply costs too much then it is unlikely to add any real value to your home.

A new kitchen with cracked tiles, miss-matched units and a dishwasher that crunches plates instead of cleaning them will not add any value to your home.

It will, however, get you a divorce and possibly some permanent physical damage.

It is pretty much the same story with loft conversions.

A project that is well planned and executed will add value to your property and, according to research published by an internet bank a loft conversion is the best way that home improvements can add value. They say converting the loft can add up to four times more value than new kitchens or other home extension.

Which loft conversions will increase the value of a property?

While it’s accurate to say a loft conversion will increase the value of your home, the gains you make will depend on what you do with the extra room.

A double bedroom with an en-suite bathroom is the best type of conversion to increase your home’s value. Especially if you’re adding an additional bedroom and increasing the number of bedrooms from three to four or even adding a fifth bedroom.

Adding any habitable space, such as a home office, will add value and of course that office can be converted to a bedroom should you decide to sell in the future. Unfortunately, it wouldn’t be easy or practical eo add an en suite bathroom at a later date.

Similarly, a dormer window will add more value then a Velux loft conversion or simply adding storage space, but of course the project will cost more.

It’s not always about the money

It’s one of life’s stresses. It can break your heart. It can also break the bank.

No-one really wants to move home unless there’s something wrong with the house they’re in. Or the neighbourhood where the house sits.

No one really wants to have to renew all their furniture and soft furnishings without reason. Moving home can be a pain.

A predominant reason for having to move is a lack of space. Families find they need more room.

This can be for a variety of reasons: either to accommodate a new baby or (shudder) an in-law; make provision for sons and daughters growing up, and needing more privacy; because of a basic need for more workspace; or even just due to the need to have ‘shed’ space in the house rather than trailing outside each time.

Even so, generally, people don’t want to move away from the neighbours they have got to know and trust.

They also don’t usually want to leave the local streets, shops, and pubs they have got to know so well.

Equally, families with children are normally not keen on moving them from schools where they have their friends, and the teachers they know.

They almost certainly don’t feel like leaving the home they’ve taken time to furnish and style to be their own.

So, why move? Why uproot the family? Why go through the hell of the property chain?

Why incur the cost involved in the buying of a new house?

Why add to that the money spent in actually moving plus the less obvious costs of refurbishing the new home?

There’s also the fact that adding an extra room to your house will almost certainly not affect your Council Tax banding until, or if, the house is eventually sold.

A loft conversation saves money, all the uncertainty and much of the hassle. It’s like an extension but without having the ugly carbuncle sticking out from the back of your house and lessening the length of your garden.

A loft conversation is turning an underused area into an integral part of the home and almost certainly costs a lot less.

The truth is we already all know the pros and cons of where we already live. There’s very little uncertainty. We acknowledge the lesser aspects of our home and the area around and have adapted.

We also know whether the roof space we already have would be due to the heat, light, and noise levels, be best served as a storage area, additional bedroom or as a new office space and organise accordingly.

All in all it is easy to see that a UK Loft conversion is the simpler, less risky, and more economical alternative to moving house.

Our survey said

There have been a number of surveys and research over the years by companies like Nationwide Building Society, Savills and internet banks. They all agree loft conversions add value and usually around the 10-20% ballpark.

In one survey when estate agents were asked to list their top five home improvement projects they came up with this list:

1) Loft conversion
2) Add a room via an extension
3) A conservatory
4) New windows
5) New kitchen

A spokesperson for the researchers said: “In many cases homeowners justify a desirable new kitchen or bathroom to themselves as they think it will increase the value of their home.

“However, in reality improving durable fixtures and fittings adds considerably less value than loft conversions that ultimately increase a property’s living area.”

Do loft conversions still add value in 2023?

We’ve seen that a loft conversion will add value to your house. Whether it’s for a quick sale or a long-term investment for when the kids leave home, converting the loft has always been a good idea for homeowners. But does that still hold true in 2023?

The shortage of materials and the rising costs we saw because of COVID are over and done with. Unfortunately, we’re seeing costs of raw materials rising again because of the economy and Ukraine.

Do take care to fully cost out your loft conversion if you are looking to add value to your home. Average house prices are falling so work out whether your loft conversion cost will be recouped by the added value to your property.

Don’t forget the building regulations

Amid all this talk about increasing the value of your house with a loft conversion I doi have to utter a word of caution.

If you don’t tick some boxes, converting the loft could actually devalue your home. Or at least leave you well out of pocket. Let me explain.

When you convert your loft you must get building regulations approval. This involves making an application to the local planning authority and a building control officer will oversee your . The purpose of this is to ensure your home improvement project is safe and conforms to the building standards laid down in the regulations.

It does seem a lot of messing about, but it is a legal requirement. If you don’t get building regulations approval and convert your loft anyway, the conversion will be illegal and you may be forced to tear it down.

Needless to say this will be very costly and in effect you’re paying twice. Once to build the loft conversion and again to destroy it. In this case you certainly won’t be adding value to your house.

Final completion certificates

At the end of a bonafide loft conversion project the building control officer will issue a final completion certificate. This confirms your loft conversion was built to comply with the building regs. If you don’t have this certificate you’ll find it impossible to sell your house.

There are also other ways in which you can lose money if you don’t get building regulations approval for your loft conversion. Your home insurance will very likely become invalid and you won’t be able to make a claim and you may even invalidate your mortgage agreement. Both of these things could have serious financial and other repercussions.

The bottom line here is don’t ignore the building regulations.

Similarly you may have to obtain planning permission and, if you have neighbours, a party wall agreement.

You can learn more about the different regulations by following the linked text above.

About the author

Latest posts