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This year we are likely to spend £40 billion on home improvements, ranging from simple, cosmetic changes to major projects like building an extension. Most owners undertake improvements with an eye to increasing their property's value, as well as making it more comfortable. Usually, improvements that add space, such as an extension or conservatory, also add value. But there are pitfalls, and in payback terms, some improvements may not be worth it. Surveyors are sceptical about indulgent, one-off improvements such as external cladding. They say the priority should be to bring your house up to a reasonable standard - at least to that of neighbouring homes. A shoddy home just gives buyers an excuse to negotiate on price. A neglected one can cause expensive structural problems to develop. So, if you are thinking of putting your home on the market, make sure any changes you make have an impact. A new designer bathroom makes more of an impression than a 30-year guaranteed paint finish. Also bear in mind changing lifestyles which are driving demand for features such as en-suite bathrooms and home offices. Loft Conversions A well-conceived loft conversion can create generous extra living space and boost the value of your home - perhaps by 10%. Often, it is simpler than building an extension. With imagination, you can transform a dusty no-go zone into a galleried bedroom home office or games room. But it is not an automatic money spinner. With family homes in particular it is important to achieve the right room balance. Stacking more bedrooms on top of limited living space can make a house unwieldy and less desirable. Similarly, if you add a conservatory that eats up the garden, the house could become less saleable. Conservatories Conservatories can provide an instant space solution. In Victorian times, they were a seasonal retreat, but now they are commonly used as live-in extensions. The design secret is to unite house and garden. Basically, a conservatory should look an integral part of the house, rather than sticking out like a sore thumb. DIY conservatories can be bought for less than £4,000, but you can pay as much as £50,000 for a good-quality bespoke structure. "The best extensions are those where you cannot see the join," says Julian Owen of the Association of Self Build Architects. This means having 'respect' for the style and scale of the existing house and using reclaimed materials where possible. The extra space should cost no more than about £100 per square foot. Basement Extensions Creating space by excavating below the house and underpinning to form a basement is an expensive last resort. However, some houses have cellars that can be converted into a decent size nursery or utility area. Extra height can be gained by digging up soil and laying a new floor, and then tanking the walls to make the room watertight. Planning Regulations Often, space-making improvements do not require planning permission, but they may need Building Regulations approval, which covers the standard of work. All householders have certain 'permitted development' rights. Check with your local authority. This is especially important if you live in a conservation area or in a listed building, where the rules are tougher. You could be ordered to demolish an unauthorised extension, or fined. Hip or Hype? Treat with scepticism estate agents' and builders' claims about 'add-on' value. Owners are more likely to make improvements when the property market is rising. But some people confuse the intrinsic value of the improvement with the general uplift in house prices. Normally, there is a trade-off between making your home more comfortable and the extra value the improvement may yield. Bear in mind that if you move soon after making an expensive improvement like an extension, you may not even recover the construction costs. The market value of a home is still influenced most by its location. All properties and streets have an optimum value, and there is a limit to how much an improvement can boost the price. Often, the harsh commercial reality is that your house needs to look much like the one next door. Better perhaps, but not too much. Over-developing your home - turning a modest bungalow into a sprawling Mediterranean-style villa - can be a liability. If you customise or over personalise your house, you narrow the field of would-be buyers. Some improvements make a home more saleable rather than more valuable. If you spend £30,000 on a new kitchen, do not expect your home to rise in value accordingly. But the improvement is likely to entice buyers if you decide to sell. Designer radiators are another example as are new bathrooms. Wealth Warning Conservation bodies such as English Heritage say out-of-character improvements can actually devalue a house. Stone cladding seems to provoke most outrage (planning permission is now necessary), followed by inappropriate replacement doors and windows. Double-glazing is the most popular improvement, but unless the windows need replacing anyway, it can be one of the least cost-effective. The capital cost could take 15 years or longer to recoup through energy savings. Using sympathetic materials to retain or enhance the character is likely to pay dividends. So avoid substituting an original slate roof - serviceable after some remedial work - with a less-expensive cement tile one. Use a Professional The standard of workmanship is an obvious factor. For bigger jobs, it may be worth appointing a chartered surveyor or architect to supervise the work. These normally charge 10-15% of the contract sum, but will often haggle with builders and get the tender price reduced. You could get an architect to produce a set of drawings and then appoint a builder. Planning Permission This could be an issue, certainly if you live in a listed building. Speak to your local council first - conservation officers are usually able to advise. All householders have permitted-development rights allowing them to undertake certain improvements and repairs without planning consent. But if you live in a conservation area, Article 4 directions may apply. These specifically relate to features such as doors and roofs. So, if there is an Article 4 governing windows, you will need permission before ripping out the existing ones (even if they are modern double-glazed types and you want to put back originals). With listed property, rarely make a distinction between repair and alteration. Any change in materials, even if appearing identical, will usually be deemed an alteration. Some local authorities run grant schemes to support the preservation of listed buildings, but they are not obliged to do so. Grants may also be available from English Heritage on 020 7973 3000, or at www.english-heritage.org.uk. League Table So do most home improvements add value to your home? Check out the following:
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