And with 7.3 million workers creating dedicated home workspace - transforming even cupboards and wardrobes, the average price of a property with an office now stands at £456,500, around 4% higher than equivalent properties in the area.
Approximately three quarters (73%) of estate agents say a dedicated home office now adds considerably to the desirability of a property.
Studies and dedicated office rooms account for many listings (35%), while sellers are also identifying external studios (29%), converted lofts (9%), and even landings or mezzanines (6%) as “home office space”.
Research amongst estate agents reveals 81% believe outbuildings and sheds have the greatest potential to be converted into offices, boosting prices ‘considerably’, due to new working styles caused by the pandemic. An estate agent located in central Bristol highlighted a recent three-bed listing had an outside office “and it pushed the price considerably." Estate agents also regularly recommend clients consider marketing large landings (12%) and garages (8%) as ripe for office conversion when putting their home on the market.
However, estate agents caution owners not to convert bedrooms into home office space, saying it can negatively impact the listing price for a property. As an estate agent operating in the Birmingham area commented “don’t ever lose the space of converting a bedroom or box room” to an office.
Covid-19 has driven 18.8 million people to work from home, with 9.6 million (29%) doing so for the first time. These workers had to suddenly adapt their homes to suit their new lifestyle, with many struggling to find dedicated working space. Just one in 10 of those working from home are lucky enough to already have a dedicated pre-existing workspace at home. For the majority, work has meant setting up a desk, table or even ironing board in their living room (19%), a spare bedroom (19%), their own bedroom (16%), dining room (10%) or the kitchen (9%).
Overall, nearly two thirds (61%) of home workers have set up their office in a shared or social space like a living or dining room. This blurring of work and home life is especially likely to affect young people, with 64% of 18-34-year olds not having a suitable divide. Nearly a quarter (23%) of younger workers barely move from their beds, having set up shop in their bedrooms.
Given that one in seven home workers (14%), some 2.3 million people, expect never to return to the office after lockdown has ended and 9.3 million believe they will work from home at least some of the time, it is unsurprising that many are now looking at how their home can suit this new lifestyle long term.
Nearly two fifths (39%) of workers, some 7.3 million people, have already converted an existing space in their homes into an office during lockdown, with a similar number planning to make these changes in the next 12 months (38%). The most popular option has been to convert an existing room (19%), but garages (9%), cupboards or wardrobes (9%), and even lofts or basements (7%) have also provided that much-needed working space. One in 12 (8%) plan to extend their property to allow for office space in the next 12 months.
Dan Simson, Head of Direct Line Home Insurance, said: “Home working is likely to be in place for millions of people for a long time to come because of the pandemic. While lockdown is easing, many employers are already encouraging their workforce to work flexibly long term, to reduce numbers in the office for social distancing measures, and to save on office costs.
“As their home office is likely to become a permanent fixture in their lives, it’s understandable many people are now starting to think about the changes and improvements they could make to their property to make home working more comfortable. As our research shows, not only does a dedicated office help a separation between work and home, it can also add significant value to a property. Anyone considering building work just needs to remember to inform their insurer before the work is carried out and update them on any additional rooms created so they have the correct level of cover.”
