Home improvements vs moving house – which one is right for you?
If your home isn’t working for you as it is, you may be wondering: is it better to improve what you have or up sticks and move?
We take a look at how renovating could add value to your home, whether you’re planning a sale or not.
If your home isn’t working for you as it is, you may be wondering: is it better to improve what you have or up sticks and move?
We take a look at how renovating could add value to your home, whether you’re planning a sale or not.
60-second summaryThe pros and cons of moving vs renovating in a nutshell:
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Should I move or improve?
If you want more space to accommodate a growing family or crave a touch of luxury like an ensuite bathroom, you have two choices – renovate your existing home or buy a new one.
Both options come with pros and cons. If you decide to renovate, you might have to rent a second property to live in temporarily, or put up with living on a building site for a while. But you could also add value to your home.
However, there are some parts of your home no amount of DIY or renovation can change. If you don’t like the area your home is in or your garden is the size of a postage stamp, it may be worth selling up rather than doing up.
Likewise, if your children have left home and you’re rattling around a giant house that’s getting increasingly hard to take care of, you might be better off downsizing.
What can I do to renovate my home?
There are many changes you could make to your house to make it more workable and enjoyable for you and your family – or to make it more attractive to potential buyers.
Here are a few common examples:
- Create more space to accommodate your growing family by building an extension
- Convert existing space, such as a garage or loft, into a bedroom or family room
- Update your kitchen
- Install modern insulation to increase energy efficiency
- Install renewable energy devices, like solar panels or a modern heating system, to make your home greener and reduce your bills
- Modernise your bathroom or add an ensuite
- Remove internal walls to create an open-plan living space
- Add a conservatory to your home, or a deck or patio to your garden.
Which home improvements add the most value?
The table shows how much popular home improvements cost on average, and how much you could stand to gain.
Be aware that the cost (and value added) can vary a lot depending on the location of your home and whether you choose a budget, mid-range or bespoke, high-end renovation.
Typical value home improvement can add to your home:
| Home improvement | Typical cost range* | Potential % increase in home value* |
|---|---|---|
| Garage conversion | £8,500-£20,000 | Up to 20% |
| Loft conversion | £20,000-£75,000 | Up 20% |
| Cellar or basement conversion | £100,000-£160,000 | Up to 20% |
| Kitchen renovation | £6,200-£35,000 | Up to 10% |
| New bathroom | £5,500-£8,000 | Up to 5% |
| Solar panels | £10,500-£20,000 | Up to 14% |
*Source: Checkatrade
How much can I add to the value of my home?
Exactly how much value any renovations might add can depend a lot on where you live.
- In London, for example, where house prices are typically much higher to begin with, construction costs are likely to be higher, but that could mean your returns are higher too.
- If parking is hard to come by where you live, creating an off-street parking spot could be an absolute winner.
- If your main goal is upping the value of your property, then it’s worth speaking to an estate agent or scouring recent property sales in your neighbourhood to understand what homebuyers are looking for in your area.
- Most areas will have a ceiling price. This is the maximum value your home will reach, regardless of what improvements you make. Before planning any big changes, it could be helpful to speak to a local estate agent or surveyor to find out how far your plans can realistically expect to affect the property’s value.
Read our guide on how to increase the value of your home.
Will home improvements affect my insurance?
Yes, they could do, especially major building work. If you intend to renovate your home, make sure you tell your insurance provider. Otherwise, if you have to make a claim, your policy may be invalidated.
Why do I need to tell my insurance provider about my home improvements?
If you have building work going on at home, your insurance provider might consider that an extra risk to your house and its contents.
Your insurance provider will also need to know about any changes to the number of bedrooms and bathrooms, as this will affect your premium. You’ll also need to flag up any changes to locks on windows and doors, which will be considered a security issue.
Read more in our guide: Will home improvements affect my home insurance?
Can I afford to make home improvements?
To work out if you can afford home improvements, get quotes from a few different tradespeople to get a more accurate idea of costs. Then, carefully work out a budget to see what you can afford and how you’ll be able to repay any money you borrow.
Remember to build a contingency of at least 10% into any budget, as renovations often end up costing more than predicted.
Top tipIf you’re planning to sell your home, but can’t afford to make any big changes, consider getting planning permission (PP) for improvements. It costs around £230-£327 to submit a PP application depending on which UK country you live in, but it’s a great way of enticing buyers. And it could add as much as 10% to the value of your home in prime locations like London. |
How can I fund home improvements?
If your heart’s set on a home renovation but you don’t have enough money saved, there are other ways you could get your project off the ground. Here are some options depending on the scale of the improvement and how much you need to borrow.
Smaller projects
If it’s a small, short-term project and you need a little advance to get it started, you might be able to fund it using a credit card. If you qualify for a card with an introductory 0% rate and use it wisely, it could help you spread the cost of your renovation project rather than have to find the money upfront. Just make sure you can make the repayments in full before the interest starts building up.
Big projects
If it’s a larger project, you could consider a home improvement loan instead. As with any borrowing, just make sure you can comfortably afford the repayments. Our loan calculator can help with that.
Alternatively, if you’re coming to the end of your mortgage deal, you could remortgage for a larger amount to cover the renovation costs. You’ll end up with higher mortgage payments or paying your mortgage for longer, but it could be worth it if your renovations will improve your quality of life in your current home and save you from the costs of moving.
Read our guide to funding home improvements.
What do I need to do if I decide to move house instead?
If you’ve decided it’s time to move on, read our guide to selling your home for tips.
How much does it cost to move house?
There are many different costs to consider when selling your home. Read our guide to the cost of selling a house to find out more.
What our expert says...
“If you’re doing renovation work yourself, see what level of accidental damage cover you have in place, just in case something goes wrong with your handiwork. Always check the terms and conditions of your home insurance policy to see what it covers before starting any major home improvements.”
“Always check the terms and conditions of your policy to see what it covers before starting any major home improvements.”
- Anna McEntee, Home, pet and travel insurance expert
Frequently asked questions
How do I work out the ceiling price of my home?
Start by having a look at property websites to see what similar properties are selling for in your area. That should give you a good idea of the maximum price people will pay for a home like yours.
For an accurate valuation, you’ll need to get a professional opinion from an estate agent. That could help you decide if your renovation project can add value or not, and if so, roughly how much.
Do I need to tell my home insurance provider about all home improvements?
If you’re just giving your house a fresh lick of paint, there’s no need to update your insurance provider. A good rule of thumb is if your renovation project could increase the value of your home then you need to notify them, because it will be factored into the rebuild cost of your home.
Will I be covered if I move out during renovations?
It depends for how long. Most standard home insurance policies will cover an unoccupied house for 30 or sometimes up to 60 days. If you’re planning a big renovation project and you need to move out for longer, your standard home insurance policy might not cover you.
You should let your insurance provider know if the property will be empty for a certain length of time. You may need to take out additional unoccupied house insurance to ensure your home is protected while you’re not there.
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Anna McEntee – Home, travel and pet insurance expert
Anna’s all about delivering fantastic insurance products at a great price. Value is the most important thing for Anna, as she cuts through the jargon and finds what’s most important and worth your hard-earned money.