The one change you can make to your home that adds a huge 24% to its value

THERE'S one change you can make to your home that adds a huge 24% to its value.

Extensions or loft conversions with a bedroom can increase value by up to 24%, new Nationwide data shows.

That works out as £65,279 on an average home worth £271,995.

Financial experts said they had seen homeowners add £100,000-plus in value on London and south-east homes through high-quality lofts,

Andrew Harvey, Nationwide's Senior Economist, said: "Homeowners that add a loft conversion or extension, incorporating a large double bedroom and bathroom, can add as much as 24% to the value of a three-bedroom, one-bathroom house.

“Our analysis suggests that, providing the room is useable, this can be a good way to increase the value of a property. The table below shows the value added for different property types by increasing floor area to accommodate an extra bedroom."

Experts said more homeowners are choosing to stay and improve their property rather than move.

Aaron Strutt, Product and Communications Director at London-based Trinity Financial, said: "More homeowners are choosing to improve and extend their property rather than move. Recent data from Churchill home insurance showed that one in 15 homes in England and Wales (1,740,402 homes) now carry official improvement Indicators, following substantial home improvements, such as loft conversions and extensions.   

"Lots of our clients are remortgaging to release funds to pay for home improvements. It often makes sense to release funds when your fixed rate comes to an end rather than getting additional borrowing. 

“This way, you have one mortgage rather than a mortgage on two parts that potentially have different end dates. With so much competition in the market to attract borrowers, there are more remortgage options, especially for those keen to raise funds.”

Omer Mehmet, Managing Director at Welling-based Trinity Finance, said it's not just about value.

He added: "A well-executed loft conversion is one of the most reliable ways to add real value to a home. Turning unused space into an extra bedroom and bathroom doesn’t just boost value – it transforms how a property lives and feels. 

"We’ve seen clients add £100,000-plus in value on London and south-east homes through high-quality lofts, especially when they enhance light and flow. The key is to spend smartly: poor design or cutting corners can wipe out any return. Done properly, a loft conversion is a win for both lifestyle and long-term equity."

Kate Allen, Owner at Kingsbridge-based Finest Stays, said this can also apply to people renting out second homes.

She continued: "A well-planned loft conversion can significantly boost both property value and rental income for second-home owners. The key is ensuring that living spaces can comfortably accommodate the additional guests, particularly around the dining table and comfortable seating areas. 

“When done well, the addition of another master bedroom and the resulting increase in capacity can make the investment highly worthwhile.”

Samuel Mather-Holgate, Independent Financial Adviser at Swindon-based Mather and Murray Financial, said: “What this research says is that property renovation isn’t dead. Nationwide have clearly outlined the most profitable areas to target, and if budding property flippers wanted guidance this is a good place to start. Budget and contingency is the key, and, of course, finding the right property.”

Kundan Bhaduri, Entrepreneur and Landlord at London-based The Kushman Group, shared advice for people thinking of converting their loft.

He added: "The best return on investment (ROI) comes from properties where loft space genuinely adds functional living area rather than cramped novelty rooms that buyers view sceptically during inspections. 

"As property investors, we target Victorian and Edwardian terraces with generous roof spaces, while avoiding modern estates where standard loft conversions create awkward proportions. A decent double bedroom with ensuite in a converted loft space can transform a cramped three-bedroom house into spacious four-bedroom family accommodation, addressing the fundamental supply shortage that drives property values across Kent and London. 

"The key lies in execution quality and planning compliance though, where proper conversions with building regs have been sought. However, people must understand that not all loft conversions deliver equal returns, with success depending entirely on ceiling height and access arrangements."