Last week, a landlord from Grantham emailed me to ask, after reading the Grantham Property Blog, if he should extend his terraced house, making an extra bedroom in the loft. He had a builder friend who owed him a favour, and thought a good way would be get an ‘inexpensive’ extension.
Having more useable space is generally thought to be consistent with better quality accommodation and homeowners and tenants are prepared to pay for it. If you added a bedroom to a two bed terraced to make a three bed terraced, it will add 10 per cent to the value of the property.
Turn a three-bed terraced into a four-bed terraced and 9 per cent will be added to the value. Looking at semi-detached properties, and turn a two- into a three-bed and 12 per cent will be added to the value, whilst making a three-bed semi into four-bed will add 9 per cent in value.
However, before you rush off to the planning department there are some important considerations, whether you are a homeowner or landlord. What would be the cost of making that extra bedroom?
The average value of a terraced house in Grantham is currently £111,200 whilst the average value of a semi-detached house is £136,800, meaning to make money the cost of the extension would need to be less than £10,564 on the terraced property and £14,364 on the semi-detached house.
Talking to a number of trades people in the town, most are booking up into the New Year. Also, no matter how good a friend he was, I know of no builders that would charge as little as that. Maybe the builder was just thinking of a bit of pointing work on the chimney!
Well, that got me thinking about how bedrooms affected rental prices and rent-ability as well. Interestingly, below you will see that whilst bedrooms do have an effect on the rent that can be achieved and the rent-ability of the property, the difference does not warrant the expense, hassle and trouble of extending.
* 43.3 per cent of the one bed properties on the market to rent in Grantham have a tenant with an average rent of £370 per month
* 58.6 per cent of the two bed properties on the market to rent in Grantham have a tenant with an average rent of £511 per month
* 69.1 per cent of the three bed properties on the market to rent in Grantham have a tenant with an average rent of £571 per month
* 58.8 per cent of the four bed properties on the market to rent in Grantham have a tenant with an average rent of £801 per month
No, if you want to increase the value of your property, be you a Grantham landlord or homeowner, there are things that cost a lot less than building extra bedrooms. Spruce up the exterior, emulsion all the rooms, install fresh carpets and curtains. For homeowners, a matter of a few hundred pounds will add thousands whilst for landlords, these things can add an extra 10 per cent to the rent that you can achieve.
For more advice and opinion on the Grantham Property Market, visit the Grantham Property Blog.