Find out whether your planned renovation will add more value than it costs. Enter the budget, estimated value uplift and holding period to see ROI, payback period and impact on rental yield.
Not all renovations deliver equal returns. A new kitchen can add 5–10% to a property's value. A loft conversion typically adds 15–25%. A swimming pool in a suburban semi-detached often adds nothing — or reduces saleability. Understanding which renovations generate a genuine return versus which are lifestyle choices is essential for smart property investment.
| Renovation Type | Typical Cost | Typical Value Added | ROI on Spend | Notes |
|---|---|---|---|---|
| Loft conversion (bedroom) | £40,000–£60,000 | £55,000–£80,000 | 120–140% | Best ROI, adds sq footage |
| Rear extension | £50,000–£80,000 | £65,000–£100,000 | 115–130% | Excellent in family areas |
| Kitchen renovation | £8,000–£25,000 | £10,000–£30,000 | 110–125% | High impact on sale speed |
| Bathroom renovation | £5,000–£15,000 | £6,000–£18,000 | 108–120% | Important for first impressions |
| New boiler / EPC rating | £3,000–£8,000 | £5,000–£12,000 | 120–150% | EPC improvements now material |
| Garden / landscaping | £5,000–£20,000 | £3,000–£10,000 | 50–70% | Low ROI, lifestyle choice |
| Swimming pool | £30,000–£60,000 | £0–£15,000 | 0–30% | Often reduces saleability |
Adding usable floor space adds the most value consistently — loft conversions (15–20% value increase), rear extensions (15–25%), and garage conversions (10–15%). Kitchen and bathroom renovations add 5–10% each and significantly improve saleability and sale speed. Energy efficiency improvements (EPC rating upgrade, new boiler) are becoming increasingly valuable as buyers and mortgage lenders factor energy costs into affordability.
It depends on the renovation and your market. Cosmetic improvements (fresh paint, clean carpets, garden tidy) almost always pay back more than they cost in sale price and speed. Major structural works (kitchen, extension) depend on local buyer expectations. In a sellers' market where properties sell quickly, major renovation before sale is less important than in a buyers' market. Always get an estate agent's view on what buyers in your area value most.
Yes — HMRC allows you to deduct "enhancement expenditure" from capital gains. This includes renovation work that permanently improves the property (kitchen extension, loft conversion) but excludes maintenance and repair work (repainting, replacing like-for-like). Keep receipts for all capital improvements as these reduce your CGT liability when you sell.