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Do you think your home has increased in value since you bought it? Chances are you're fairly optimistic – and probably with good reason, given how quickly house prices have been rising recently – as research from Co-op Insurance finds that the vast majority of respondents believe their home is now worth a hefty chunk more than they paid for it.
According to the survey, 91% of homeowners think their house's value has increased in the years since they bought it, by an average of £33,125. However, many were planning this all along, with 31% admitting they bought their property with their eye firmly on how much they could make from it.
Of those, 62% were relying on house prices increasing generally to boost the value of their home, but 34% focused on location, choosing to buy in an already desirable area. A further 32% took a slight gamble and sought properties in areas classed as 'up and coming', while 29% bought a home in dire need of renovation, in the hope that performing the works would dramatically boost its price.
Many went to town on the renovations, too – 76% of surveyed homeowners made changes to their property since they moved in, with 73% focusing on decorating and 67% fitting a new kitchen, while 65% refurbished the bathroom. Other popular changes include fitting new windows (64%), installing a new boiler and heating system (57%), and renovating the garden (49%).
And it looks as though it paid off, with 60% believing the renovation works they carried out had increased their home's value. On average, homeowners spent £18,224 on renovating and decorating, which based on the average expected uplift overall, means the typical homeowner has seen a £14,900 profit as a result of the works.
Caroline Hunter, head of Home Insurance at Co-op, commented on the findings: "Our study shows that homeowners believe by investing in décor and bigger renovation works they are adding value to their homes for future years. Kitchens have long been lauded as the heart of the home and our study continues to solidify this, with over half of homeowners believing that this is the room of the house that could make, or break, a sale.
"Whilst they are a big draw for prospective buyers, they can be expensive, therefore it's important to revisit your home insurance policy to ensure you have the right level of cover in place during the building works, to protect you from additional risks during the work. Don't assume your builder will have insurance in place that covers you in every eventuality."
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