But which option is the most cost-effective; an extension, or is moving home the more affordable alternative?
According to new research, once again the answer depends largely on location, location, location.
Cellar conversion experts, Allerton Damp Proofing, have calculated the value that several extension types could add to properties in the largest towns and cities across the UK.
The findings discovered that a basement extension could add around £157,000 to a London property’s value, after expenses. A first floor or ground floor extension in London returns an average profit of £67,000.
After expenses, a loft extension can add an average of £85,000 to a London property’s value.
But huge profits from extensions aren’t just limited to pricier areas of the country. The team have revealed the most affordable large towns and cities for home buyers, where an extension will still turn a profit after expenses.
Manchester - £3,834
York - £18,203
Leeds - £3,989
Norwich - £11,498
Gloucester - £1,053
Joe Trivett, Damp Expert at Allerton Damp Proofing, comments: “When homeowners start requiring more space, calculating the costs of moving to a larger home versus an extension can be challenging.
“While average property prices in York are comparatively lower than in London, Oxford, or Cambridge, the area is still one of the most sought after in Yorkshire, so buyers here are willing to spend more to secure extra space.
“Likewise, in different areas of the UK, the amount of interest and profit an extension may generate changes massively.
“If you are extending with the aim of increasing your property’s value as much as possible, tailor that extra space to what potential buyers would want. In an area desired by young professionals consider adding a home office to the property. Alternatively, if the area is family orientated, prioritise creating another bedroom.
“Keep in mind your house’s ceiling price, the maximum price that it may go for on the market. You can estimate this figure by looking at the recent sale prices of similar properties on your street.
“While this research indicates an average increase in value from extensions across UK towns and cities, the value of additional space can massively change within the same small area. Transport links and school catchment areas, for example, can change the value of a property to a commuter or family.”
Joe adds: “An extension is a great opportunity to add space to your home, without starting over in a new property.
“The housing market has been highly competitive recently as people look to upsize, so opting for an extension instead of a move can save you lots of time house hunting, especially if you’re really happy with the location you currently live in.”
