Fresh research reveals that as many as four in 10 homes in certain parts of London now have roof conversions. In an effort to raise house value, property owners are extending upwards – especially those who own buy-to-let properties. 40% of properties in the City of Westminster, where properties are often exceptionally expensive, now have attic conversions, and this is closely followed by Kensington, Chelsea and Camden.
Adding a roof conversion to your buy-to-let property is just one way you can add capital value, whilst also creating more rental space for tenants. Here’s a few other ways you can boost ROI.
Property Investment in the UK – Top Tips to Boost Returns
1) Add a conservatory. If you have the available space to do so, adding a conservatory to your property can add significant value. According to peer-to-peer platform Zopa, a conservatory adds as much as 108% return on investment. It can also be used to provide extra communal space for tenants – enabling you to convert the reception room into an additional bedroom. Prices vary, but on average, you can expect to pay around £5,500 – £6,000 for a conservatory to be built.
2) Sub-divide space. If your property has large rooms (which is especially common in period properties) consider sub-dividing the space to create more rentable space for tenants. This instantly adds the potential to increase rental yield – but make sure you comply with legislations if you choose to do this.
3) Build a granny annex. If you’ve got ample garden space, consider creating a ‘granny annex’ in the garden. In order to make it appealing to tenants, you’ll need to include a small bathroom and kitchenette area at least – but this is a relatively cost-effective way of increasing your rental returns.
4) Convert the garage. A sizeable garage is often suitable for conversion – especially if it can be converted into a two-storey addition to your property. This may require a more substantial initial investment, but has the potential to add at least one more rentable room to the house, if not more.
5) Use reception space. One of the cheapest ways to maximise rental potential is to use additional reception areas as extra bedrooms for tenants. Remember, if your property is a HMO (house of multiple occupancy) you’re not legally required to supply living space.
Adding Value to Your Buy-to-Let Property
According to Nationwide Building Society, a loft conversion can add as much as 20% to the value of your property. Given that loft conversions cost around £25,000, this generally means an average profit of £12,500 – 50% return on your original investment.
If you’re not sure what improvements would offer the best return on investment, ask for expert opinions from local builders, letting agents and estate agents. They’ll be able to give you an idea on costs involved, plus insight into what houses with improvements are selling for on the market.
The Buy2Let Shop
If you’re seeking buy-to-let properties for sale, and you’d like help finding the ideal property for your requirements, talk to The Buy2Let Shop today. We’re property investment agents in London, and we’re here to offer advice and guidance throughout your house purchase. We have a large number of properties on our books that are not available on the general market, and we also offer assistance with property auctions.