HSBC Survey Warns DIY Britons of Drop in Home Improvement ROI

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27th March 2012 16:18 - Construction

Ahead of the upcoming Bank Holidays weekends in April, May and June when more 52% of UK householders are planning DIY projects,  a new survey by HSBC cautions that the potential increase in property value resulting from home improvements has fallen in the past year.

The annual HSBC Home Improvement Survey has discovered that refitting or altering a home in the current economic climate may not provide the same level of financial return as in previous times.

While valuation experts advise that a loft conversion is the best way to improve a property's value – on average by £16,152 – it will still bring 23% less of a return than in 2011.

The only major DIY home improvement to show an increase in the relative ROI over the past year is a new conservatory – this will increase property value by an average of £9,420 - a 14% rise from 2011.

HSBC’s study also revealed regional differences – a new kitchen in London will boost a home’s value on average by £9,125, in contrast to £4,300 in north-east England and £2,333 in Scotland.

Valuation expert Paul Cutbill at Countrywide Surveying Services commented: “Whilst sensibly improved and well presented homes will generally be attractive to potential purchasers, rising labour and material costs mean that the gap between the cost of improving and monies realised at the point of any sale has been reduced.”

Head of Mortgages at HSBC, Peter Dockar, concluded: “Householders should think carefully about the type and extent of any improvement works being contemplated. Those which enhance living environment whilst retaining broad appeal should be favoured over more individually styled alterations.”

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