Abbey: Home improvements no longer add value

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Abbey: Home improvements no longer add value

Wed 23rd Jul 2008

Most home improvements no longer add more value to a property than they cost, according to new research from Abbey.

Extensions can cost homeowners £20,000 if they sell up immediately afterwards, while a new kitchen or conservatory can set a homeowner back by nearly £14,000.

The only home improvements recommended by estate agents to boost a house price are cosmetic ones such as repainting and decorating, Abbey found.

Yet 8.3 million homeowners still plan to carry out improvements in the next 12 months, with 3.2 million intending to install a new kitchen and 2.4 million looking at new bathrooms.

Phil Cliff, director of Abbey Mortgages, said it is important that people make improvements "because they want to live in the end result".

Meanwhile, figures released by the National Association of Estate Agents (NAEA) show hope for first-time buyers.

They comprised 11.8 per cent of sales in June.

Chris Brown, NAEA president, said that first-time buyers with enough funds and the ability to secure a mortgage can now "operate as opportunists" and take advantage of current properties and prices.

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