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Extra rooms can add 11% to house prices

Adding a decent-sized bedroom or bathroom to a property can lift its value by up to 11 per cent, according to Nationwide&#39s What Adds Value? study.

Nationwide says salaries and interest rates are the drivers of house prices at a national level but it says many other factors are important in influencing values. It lists additional bedrooms and bathrooms, garages and central heating as profitable options.

Nationwide estimates that adding a 140 sq ft bedroom to a two-bedroom property will increase its value by 10.8 per cent and a second bathroom will add 9.7 per cent. Installing full central heating will see the value rise by 13.2 per cent while a single garage will boost it by 11.1 per cent.

The research shows that adding an extra bedroom to the average two-bed semidetached house, typically worth £120,000, will pay for itself as long as the work costs £13,000 or less.

Detached bungalows are worth up to 20 per cent more than semi-detached houses.

Group economist Alex Bannister says: “Adding a bedroom may also negate the need to move up the property ladder, saving moving costs of £4,000 to £5,000 and almost certainly higher mortgage payments. However, improvements must be appropriate. Adding a fourth bathroom to a two-bed property is unlikely to boost its value significantly.

“Older properties are also typically worth more, with a Jacobean property worth around 30 per cent more than one built in the 1950s. New properties also attract a premium, typically between 5 to 10 per cent, although this is considerably less than the 25 per cent-plus seen during the 1980s.”


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