With Christmas quickly hurtling towards us, it’s hard to look any further ahead than December 25, but for house hunters, it’ll soon be time to start searching.
According to Rightmove, the New Year is a popular time to start looking for that dream home, as it’s when ‘activity in the buyers’ market picks up.’
And, if you’re considering putting your house on the market, there’s one unexpected – and lucrative – addition that could bag sellers £100,000 more.
New research shows that homeowners with an annexe can expect to sell for £129,000 more than the average. This translates to 20.7% above the asking price of similar homes without this highly coveted feature.
Of course, an annexe isn’t quite as easy as added an extra coat of paint or switching up your light fixures.
These extensions, which are usually a smaller building that’s either directly joined or on the same grounds as a main building, are intended to provide extra space or accommodation. Commonly, they’re used to give a family member who still lives at home – like a grandparent or adult child – extra space but with a hint of independence.
As per figures from Checkatrade, the average cost of constructing a so-called ‘granny annexe’ in 2023 was £90,000, and naturally, the larger the annexe, the greater the cost will be.
But even if you spend the hefty sum of £90,000 on extending your home, you’re still looking at a decent return.
For example, the people of Yorkshire could look to make a healthy profit, as annexes in God’s Own County command an even bigger increase (24.3% no less) which translates to £110,500.
But it’s not just Yorkshire that’s come up trumps: the West Midlands and North East are home to the second highest house price premium at 23.9%, which equates to a difference of £135,095 and £101,252 respectively.
Though Southerners don’t reap quite as much benefit percentage-wise for including an annexe, with the South East seeing a boost of 21.4%, this region enjoys the highest pounds and pence difference across the country at £167,500. Just think of all the new furniture you could fill your new home with using that.
It’s not necessarily good news for Londoners either, where an annexed home commands the lowest premium at a measly 10.3%, according to eXp’s figures.
However, this does still translate to £107,550 more than market averages in the area – so it isn’t completely without value.
‘Christmas is a special time of year when friends and family get together for a prolonged period, but once the turkey has been carved and the presents opened, it can get a tad tedious all living together under the same roof,’ head of eXp UK Adam Day shared.
‘An annexe provides the perfect compromise, allowing the family to stay, but within their own separate part of the house, meaning no sleeping on the sofa, or long waits for the bathroom.’
As such, he says, ‘it’s no surprise that an annexed property commands a pretty penny more and those looking to sell this festive season can expect to do so for around 21% if they have an annexe versus comparable properties without.’
On the other hand, what about the property features that slash value off the asking price?
For starters, an outdated kitchen could knock a few pounds off. This is the big kicker, as this could decrease the value by between 20 and 30%, according to Jennifer Spinelli, estate agent and founder and CEO of Watson Buys.
Old appliances, worn cabinets and outdated countertops could spell trouble, with Jennifer recommending that, where possible, homeowners looking to sell up invest in vertical shelving, a pantry or even a built-in utility room if there’s space.
Elsewhere, have you ever heard of kerb appeal? Well, you have now. It refers to how attractive a property is when it’s viewed from the street.
Think: a nice colourful front door, Victorian black and white tiling or just a nicely trimmed hedge.
It goes without saying that if a property has poor kerb appeal, that could decrease its value by between ’10 and 15%,’ Jennifer said.
In a similar vein, an old-fashioned bathroom can put buyers off. This one holds slightly less importance, decreasing the value by between 15 and 25%, but it includes elements like outdated fixtures, cracked tiles and poor ventilation.
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