It’s no secret that buying and owning property in London can be expensive. This is typically true for every capital city, but in a destination as lively and full of opportunities as London, you can expect to pay considerably more for property than elsewhere in the UK. If you already own a property, you’ll also know that investing in it can be extremely lucrative. From landscaping your garden to installing a conservatory, there are lots of household renovations, small and large, that can boost the value of your home significantly. With the right planning, home extensions can also be extremely profitable in London.
From loft conversions to rear extensions, there are many different types of home extensions to consider - and many different reasons for investing in a home extension. It may be that your family is growing or that you’d like to rent out your London property for additional income. However, it’s important to remember that house renovations and extensions aren’t automatically lucrative.
Before making any decisions about your home, you must weigh up the upfront and maintenance costs of extending your property with the benefits of doing so. This can help you avoid financial setbacks and make sure your new home extension is a worthwhile investment.
Below, we use our expertise to discuss some of the main costs to take into consideration when planning your next project and how they compare to the benefits of extending your property.
First, let’s discuss some of the most common types of extensions. There’s no one-size-fits-all when it comes to extending your property, and depending on the area you live in and the requirements of future house buyers, it’s fair to say that some extensions are more likely to be profitable than others. It’s important to remember this when choosing between:
- Side return extensions
- Wrap-around extensions
- Single or double-storey extensions
- Rear extensions, including garages
- Loft conversions
- Basement conversions.
Of course, the type of house extension you invest in will also depend on your personal requirements. After all, you’re not going to opt for a wrap-around extension if you only need one extra room. Instead, you might consider investing in a loft extension as the most appropriate and cost-effective option.
However, if you’re developing a property in London to rent or sell, then it’s important to consider the needs of the area. For example, if it’s a residential area of London where parking is at a premium, then investing in a rear extension with garage space could help to attract higher-paying buyers. Bearing these factors in mind will help you make the most profitable choices.
How much do house extensions in London cost?
When making any change to your property, the cost of the project is one of the most important factors to consider. You need to plan a project that won’t exceed your budgetary restrictions - but that will also be a worthwhile investment. This is especially important if you plan to sell your property in the future; after all, you don’t want to lose money on a renovation project.
With this in mind, it’s important to weigh up the costs of your house extension project against the benefits, including financial benefits (e.g. increasing the value of your property) and non-financial benefits (e.g. enjoying additional living space with your family).
The most accurate way to figure out how much your house extension will cost is to obtain a quote from your chosen contractors, however, several factors will affect the final price. These include:
- The type of house extension
- The area you live in
- The size of the project and how much floor space is required
- The contractors you hire
Perhaps the most important factor to consider when determining the overall cost of your house extension is the type you choose. For example, while wrap-around extensions might cost upwards of £50,000, loft extensions can start from approximately £15,000. However, even the type of loft extension you opt for will affect the overall cost. A basic loft conversion will be the most budget-friendly option, but altering the structure of your property and investing in additional floor space will cost considerably more. For example, a mansard loft extension could cost upwards of £45,000.
This is because house extensions are often quoted at a cost per square metre rate. The more floor space you require, the more you can expect to pay. Not only this, but it depends on the number of services required. For example, if you’re planning a double-storey extension, you’ll need to hire scaffolding contractors to work at height. Or, if you’re planning a basement extension, you may need piling and underpinning experts.
You can also expect to pay considerably more for a house extension in London than elsewhere in the country. For example, the average price per square metre for house extensions in London and the South East is around £1500-2000. In contrast, £1500 is likely to be the maximum price you pay per square metre for house extensions outside of London and the South East.
While you should always think very carefully before investing in a house extension, it’s important to remember that there are lots of great financial and non-financial benefits. Building a house extension isn’t going to be cheap, no matter what type of extension you choose or the contractors you work with. However, there are lots of great benefits to extending your London property. These include:
Extensions can add significant value to your home
The cost of paying for a house extension might seem daunting at first, but your return on investment could outweigh the upfront fees! This is especially true in London, where house buyers are willing to pay more for the extra space. Spare bedrooms, large kitchens and extra bathrooms are all attractive to house buyers who will often pay higher buying prices for the convenience of having pre-built extensions.
Again, the value of your house extension will depend on several factors, including the type of extension you opt for. For example, while adding another bathroom could increase the value of your home by 5%, another bedroom could increase its value by up to 20%!
Extending your home is more cost-effective than moving
Even if selling your property isn’t currently on your radar, investing in a home extension could still benefit you financially. After all, extending your property is much less expensive than moving house altogether. If your current home no longer meets your requirements, then moving house might seem like the only option. However, extending and renovating your property will cost you less. You will also have the freedom to alter it according to your requirements, whether you need an extra room for a new family member or ground-floor bathroom for a loved one with mobility issues.
Property prices in London are on the rise, and for many people, this makes buying their dream house quite difficult. For this reason, many homeowners choose to extend and adapt their property over the years, rather than moving up the property ladder. As the needs of you and your family change, extending your home could become an attractive prospect! For instance, you might decide to build a home office to run a start-up business. There are lots of great ways to adapt your property with home extensions!
For all property related advice please feel free to contact out experienced sales team who are on hand to help.
