Location, location, location remains the biggest factor affecting property values but a new survey has found a number of other elements, such as extra space and energy efficiency, can have a “significant influence” on the desirability and price of a property.
The survey by Nationwide discovered that a loft conversion can be one of the best investments for home owners, as adding an extra bathroom and bedroom can raise a property’s value by as much as 20%.
For a three-bedroom, one-bathroom house, that equates to around £26,000, the building society said.
Increasing a property’s floor space with an extension can also boost to its value, with an extra bedroom adding 11% to the price of a home.
Other highly-desirable home improvements include measures that cut a home’s carbon footprint and are likely to save money on energy bills, such as cavity wall or loft insulation, Nationwide noted.
It added that such energy efficient measures are likely to become more important in the future as the government aims to cut the UK’s carbon emissions by 34% by 2020.
According to Nationwide’s latest figures, the average UK house price is £154,016.