Print

Loft conversions send prices through roof

Loft conversions can add £100,000 to a home's value according to new findings by Alliance & Leicester...

Research across England and Wales reveals how homeowners who add a loft conversion to their house are likely to be in a win-win situation. It's cheaper than buying a bigger house, they could see the value of the property go through the roof and they could make significant savings compared to a further advance on a mortgage or a personal loan from the 'Big Four'.

Although there are regional price differences, the average cost of a dormer loft conversion is around £23,000, and can add £100,000 to the house's value.

Hide table

Potential increase in the value of homes after the addition of a dormer-style loft
Region	2 bed	3 bed	4 bed	2-3 bed uplift	3-4 bed uplift
London	£223,089	£278,019	£448,821	£54,930	£170,802
South East	£174,441	£214,636	£339,334	£40,195	£124,698
West Midlands	£119,671	£151,795	£253,524	£32,124	£101,729
East of England	£154,906	£191,701	£292,603	£36,795	£100,902
North West	£105,432	£139,903	£237,791	£34,471	£97,888
Wales	£109,578	£130,330	£221,998	£20,752	£91,668
South West	£153,311	£188,031	£279,175	£34,720	£91,144
Yorks & Humber	£109,974	£138,361	£229,119	£28,387	£90,758
East Midlands	£112,705	£141,210	£228,148	£28,505	£86,938
North East	£101,248	£134,397	£220,039	£33,149	£85,642
Average	£136,436	£170,838	£275,055	£34,402	£104,217

Print Features Archive Show Full Table

Small outlay brings huge returns

In London, dormer loft conversions to a three-bedroom home cost around £25,000, but could return a whopping potential profit of nearly £146,000 if the homeowner went on to sell their property. The average cost of a loft conversion in the North West stands at £22,080.

Similarly in the West Midlands, the cost of converting a three-bedroom home to a four-bedroom home is around £22,000 - but could add more than £100,000 to the value of the property.

Richard Al-Dabbagh, Alliance & Leicester Senior Personal Loans Manager, said: “Carrying out home improvements instead of moving can have amazing results, potentially increasing the value of your existing property and also saving a great deal of money as well.

“If you are looking to undertake a sizeable home improvement, there will be a massive temptation to simply take out a further advance on your mortgage. But a personal loan could represent a cheaper alternative for those who can afford higher monthly repayments over the shorter term.”

Always consider the risks

Andrew Thompson, General Manager of the Building Cost Information Service (BCIS), observed:

“With any work on your home it's crucial to make sure it will be beneficial and add value. While a loft conversion may be cheaper than moving, it can be a project that's disruptive to the household. You also need to carefully consider fire risks and redecorating costs. A surveyor can give you professional advice about building regulations, planning permission and whether the improvement will add value.”