The current state of the housing market means that most home improvements are not adding any more to the asking price than they cost said the Abbey National.
A home extension can leave someone selling the property around GBP20,000 out of pocket if they were to sell straight after getting the work done, while a new conservatory or kitchen can easily leave them down by GBP14,000. The only home improvements the Abbey National feel are worth doing for those selling a property are the cosmetic ones such as decorating.
The key to home improvements then is to undertake them only if the plan is to stay in the property. This way they become a real benefit to the homeowner said an Abbey National spokesperson. It is understood that well over 8 million people will be improving their homes in the coming year which may prove a revealing statistic in what is a dormant market.
The latest Halifax house price report showed a slide of 1.7 percent for the month of July, taking the overall decrease for the year to date to 8.8 percent.
A Halifax spokesman said that increasing demands on consumers income as well as much tighter mortgage lending criteria is making it very difficult for people to get into the market, with a natural decline in prices to try and stimulate interest.
On the topic of mortgage approvals, which really drive the housing market, they are down by almost 70 percent compared with the same time last year according to Halifax figures. This leads to the real market, that is those who can finance a move, shrinking considerably and in many cases almost cutting off completely the first time buyer.
With all the different DIY and property shows on television it is perhaps no surprise that they have inspired the nation to get their hands dirty and get into DIY. This is what the Alliance and Leicester found.
Decorating is top of the list for improving the appearance of the home, closely followed by installing a new bathroom and changing the flooring. The Alliance and Leicester though suggested loft conversions or fitting a new kitchen would be the best options for increasing the value of the home. In the past these have often been funded through the mortgage though this may not be as accessible now.
At the end of the day it comes down to the balance between enjoying living in a property and making it more valuable and desirable when it comes to selling. This is the dilemma every property owner faces say the Alliance and Leicester, but at the end of the day a home should be just that.
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