While most loft conversions are completed to improve living space and privacy for the family, some of our clients convert their homes as a business investment. This can be to improve the value of their home before selling it, so that they can increase the sale amount, or renting out the loft conversion as an additional room or even an entire apartment.
Where is the Best Area for Loft Conversion Investments?
As with most home improvements, the largest increases in house value will be in areas where house values are already high and there is less supply than demand. Areas such as London have the most expensive housing in the country, and increasing the square footage of your living space can have a huge impact on the price of your home. However, the surrounding areas such as Hertfordshire, Kent, and Surrey are also incredibly popular among families and students, so these home are excellent in terms of investment and potential for improvement.
What ROI Could I Gain on a Loft Conversion?
Numerous studies over the last few years have found that loft conversion offer the best ROI of any home improvement, including room extensions, conservatories, new kitchens, and re-carpeting. A conversion can increase your living space by up to 30% and you could see as much as a £37,000 added to the value of your home (according to Nationwide). Only 1% of people surveyed didn’t see any increase in the value of their home, while others enjoyed an increase of up to 21%.
Can I Rent a Loft Conversion as a Flat?
In most instances, loft apartments are larger warehouse spaces that are let or sold in South London or former industrial areas. However, home owners are increasingly turning their own loft spaces into self-contained flats to rent out. The value of these lettings depends on a number of factors, such as access, privacy, size, and location. If you have a central London location, private access to the loft, and a good-sized flat you could earn an excellent second income. However, if this isn’t possible due to planning considerations or budgets, you can still create a studio flat or simply some rooms to rent to lodgers if you would like to generate an income from your loft.
If you would like to rent out your converted loft, we strongly recommend that you add:
- A private bathroom, including a shower (and bath, if space allows)
- Separate living and sleeping areas – this can be divided by walls or a mezzanine, depending on space
- A kitchenette
- Additional soundproofing or thick carpets to increase privacy
- A lock on the door
- Easy access without having to disturb other residents (i.e. Don’t put the staircase into another bedroom)
If you would like to rent out your loft conversion, let us know so that we can incorporate these features into your design.