When you’re looking at which home improvements add the most value to your house, it’s worth looking at upgrading your kitchen. As the old saying goes; kitchens and bathrooms sell houses.
So does upgrading your kitchen add value to your home? It’s estimated that a new kitchen will improve your property’s market value by up to 6%. But it’s important to keep the price bracket of your kitchen to match with the price bracket of your home. Be aware that what you spend on your kitchen doesn’t necessarily guarantee that you’ll make back every penny you spend.
Does upgrading your kitchen add value to your home in the UK?
The simple answer to the question “does upgrading your kitchen add value to your home?” is yes it most certainly does. If your budget is only enough for one room in your house, make it the kitchen. But see below about what else to upgrade on your home.
Most people spend the majority of their time at home in the kitchen. Plus buyers know how much it will cost to replace a kitchen. Those home buyers who are looking for a house that’s ‘ready-to-go’ will want to see a remodelled kitchen.
A great looking kitchen will sell a house. If it’s done well a new kitchen can add up to 6% to the value of your home.
The price bracket of your kitchen should match the price bracket of your home
Whilst a new kitchen will add value, there’s no point in spending more on your kitchen than it’s going to add in value. But conversely, if you own a more expensive home that’s worth in excess of £500,000 you don’t want to be scrimping on the cheapest kitchen you can find.
Here’s a few examples of what upgrading your kitchen may add to the value of your home.
The home values below are before the new kitchen upgrade
Home value £150,000 – Added value = £9,000; Suggested maximum kitchen upgrade cost £5,000.
Home value £200,000 – Added value = £12,000; Suggested maximum kitchen upgrade cost £6,500.
Home value £250,000 – Added value = £15,000; Suggested maximum kitchen upgrade cost £8,500.
Home value £300,000 – Added value = £18,000; Suggested maximum kitchen upgrade cost £10,000.
Home value £350,000 – Added value = £21,000; Suggested maximum kitchen upgrade cost £11,500.
Home value £400,000 – Added value = £24,000; Suggested maximum kitchen upgrade cost £13,500.
Home value £500,000 – Added value = £30,000; Suggested maximum kitchen upgrade cost £16,500.
The above are only estimated numbers and there’s no guarantee of the 6% uplift. However, the 6% value uplift for adding a new kitchen has come from the Nationwide Building Society.
A kitchen upgrade is not just about adding value to your home
Having said what I’ve said in the section above about the maximum spend on upgrading your kitchen, there’s another consideration. If you’re looking to sell your house quickly, having a new and modern kitchen will help you to sell your house fast.
It may be that you’re prepared to spend a bit more on your kitchen, simply to make sure your house sells more easily. But you’d be silly to spend more than what a kitchen adds in terms of value to your home.
Whilst earlier in this article I did say if you only have the budget for one room, spend it on your kitchen. But having said that, there’s no point in spending money on updating your kitchen, when the rest of your house is a mess.
Painting and decorating your whole house in neutral colours will improve its look and will help your house sell. This is the painting of both the inside and outside.
Tidy and landscape your garden.
Create kerb appeal and a great first impression.
Consider updating your bathroom or bathrooms.
Clean your roof.
Paint or update your windows.
Clean or upgrade your soffits and fascias.
Consider new flooring and carpets where these are either out dated or tired and worn out.
Tidy, clean and de-clutter your house and make it smell nice.
When you’re spending money on improving your home, always be aware of the ceiling price of your road. Every home in every street has a ‘ceiling price’. The ceiling price is the maximum price you’d expect to achieve as a resale, based on similar properties in your road.
For example, if you were to transform your terraced house into the Buckingham Palace, it’s unlikely that someone will pay the price you would want for it. Be realistic about what your home is likely to achieve when you list it with an estate agent.
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Article written by Russell Bowyer who has been investing in property since purchasing his first commercial property in the 1990's for his own Chartered Accountancy business. But his first property investment project was to turn an old dilapidated restaurant into a large 5-bed home, which he purchased for £117,500 and sold for £450,000 (to see an "after" photo of the house before it was sold see here: About). Russell owns a number of investment properties, which includes houses, flats and HMO's. More recently he has turned his creative side to investing in property using lease options. His largest lease option deal to date was to acquire 12 properties worth over £2 million for just £12, which means he paid just £1 to acquire each property!
4 thoughts on “Does Upgrading Your Kitchen Add Value To Your Home UK? (What To Spend)”
Do the recomended cost vs house value per kitchen include an extension or is that just for the kitchen fitting
Hi Paul, the recommended cost vs house value is for the kitchen only – not an extension. Depending on where your property is and how well you do the extension, this could add more value. But check with your local estate agent beforehand, as you have to be careful about not over-spending on a property.
I thought that would be the case, thanks. The extension would be small, basically push the rear wall of the current kitchen out to match the existing extension that is on the rear of the garage, then knock the wall out between the kitchen and this “back room” to make one large square kitchen., otherwise it would be an awkward “L” shape
Hello Paul, That sounds sensible and an extension that shouldn’t cost too much to accomplish. This will then make a much nicer and larger kitchen to your house too. Let me know how it goes.
Do the recomended cost vs house value per kitchen include an extension or is that just for the kitchen fitting
Hi Paul, the recommended cost vs house value is for the kitchen only – not an extension. Depending on where your property is and how well you do the extension, this could add more value. But check with your local estate agent beforehand, as you have to be careful about not over-spending on a property.
Hi Russell,
I thought that would be the case, thanks. The extension would be small, basically push the rear wall of the current kitchen out to match the existing extension that is on the rear of the garage, then knock the wall out between the kitchen and this “back room” to make one large square kitchen., otherwise it would be an awkward “L” shape
Hello Paul, That sounds sensible and an extension that shouldn’t cost too much to accomplish. This will then make a much nicer and larger kitchen to your house too. Let me know how it goes.