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Additional Bedrooms Can Put 50% More Value on Homes in Leeds and Newcastle

Bycjp

Jul 25, 2019 #Finance, #home

In an often unpredictable housing market, a reported 15% of homeowners are opting to improve their property as opposed to upping sticks. As well as creating nicer surroundings, refurbishing different areas of a home can add significant value, but what is the true return on investment?

Self-storage experts Safestore have taken a look at the landscape of homeownership to find the most popular areas of the home people improve, and the number of homes in the UK that offer these amenities.

NEWCASTLE

  • Our research finds that 1 in 4 Newcastle properties on Zoopla are open-plan, with 8% having an extension or listed as ‘refurbished’.
  • Compared to other parts of the UK, Newcastle has a below average number of properties with lofts (14%).
  • A 4-bed in Newcastle is only £20,000 higher in value than the average UK 1-bed but is a massive 78% higher than properties with 3 bedrooms in the same city.

BIRMINGHAM

As the country’s second most populous city, Birmingham’s housing market is huge and ever-developing.

  • The research shows that you are more likely to find a property with a loft in Birmingham than all of the UK cities we studied, with 28% of homes mentioning one in their listing.
  • They were, however, below average for listings advertised as either refurbished (7%) or open-plan (23%).
  • If you’re buying a house in Birmingham, you can expect to pay over 30% more for a 2-bed than a single bedroom property, and almost 50% more for a 4-bed than a property with 3.

BRISTOL

Bristol has been revered for some years now as an on-trend place to live, work and buy a property.

  • Our study shows that over a third of properties are listed as being ‘open-plan’, less than only London and nearby city, Cardiff.
  • The research also shows that you are more likely to have a loft in Bristol than any other city, with 37% of properties listing the feature.
  • On average, an additional bedroom can increase a Cardiff home’s worth by 33%, showing the true value of upscaling your property.   

CARDIFF

Cardiff has gone under massive redevelopments in recent years, with new properties and other facilities popping up all over the Welsh capital.

  • In Cardiff, you are more likely to find an open plan property in your searches than anywhere else in the country bar London. A huge 42% of listings in Cardiff contain this feature, with other high performing amenities being a loft (29%) and a wet room (5%).  
  • A 1-bed in Cardiff is priced at around £124,000 and rises to £186,000 for two-beds, an increase of nearly 50%.

EDINBURGH

  • In the Scottish capital, there are a higher percentage of properties for sale that advertise an extension (17%) than any other city in our research.
  • Other suggestions of trends include a higher number of open-plan properties (32%) and refurbished homes (8%).
  • Having an additional bedroom can add significant value to your home, and having 2 instead of one bolsters the sale price by 42% on average.  

GLASGOW

  • We’ve found that the proportion of property listings in Glasgow detailing ‘solar panels’ is 5 times higher than the UK average. This could be partly due to the government-backed initiative that assisted the funding of solar panels in Scotland up until 2010, but shows that Glasgow is ahead of the trend when it comes to the environment.
  • Properties in Glasgow, on average, rise by 47% for every additional bedroom, with the most lucrative upgrade found between 3 and 4 bedrooms where the value rises 70%.

LEEDS

It was reported earlier this year that the property market in Leeds was outperforming the capital, with rising sales and prices on the incline.

  • Our research has found that a higher proportion of home listings in Leeds advertise ‘Smart home’ features as part of the amenities. Smart is an increasingly popular aspect of homeownership and while 3% of all listings may seem small, it’s above the UK average as well as the capital.
  • Other notable findings are that over 1 in 6 homes contain an extension, as well as 20% including loft’s in their description.
  • The average 1 bed in Leeds costs just short of £94,000 which rises over 38% in value when we look solely at the values of 2-bed homes.

LONDON

In a hugely changeable market, property owners in the capital often prefer to renovate their homes to improve their surroundings or boost the sell-on value later down the line.

  • Of all the cities we analysed, none had a higher rate of open-plan properties than London (44%).
  • London also ranked highest for refurbished properties (16%). This could be partly due to the staggering number of new builds that become available every year in the capital.
  • According to averages on Zoopla, London properties shoot up by nearly 50% when looking at 2 bedroom properties instead of those with just one.

MANCHESTER

  • We crawled every property listing on Zoopla in the Manchester area and found that a quarter of homes are described as ‘open plan’ with 1 in 10 advertising a loft as one of their amenities.
  • Compared to other UK cities, Manchester scored above the national average for properties containing ‘smart technology’ (2.07%).
  • You can be expected to pay, on average, 67% more for a 4-bed property than a 3 bed in Manchester, which might go some lengths to justify that extension you’re planning.

To find out how your city compares, view the full study by Safestore here.

By cjp