Originally Posted On: https://squaredmoney.co.uk/reports/home-improvement-projects-in-the-uk-2024-2025/

Home Improvement Index (2024–2025)

UK homeowners continue to invest in DIY projects that improve living spaces and enhance property value. Popular projects include kitchen and bathroom remodels, loft conversions, and extensions. Additionally, there is growing interest in sustainability and smart home technology as add‐ons to traditional projects.

Home improvements remain a popular way for UK homeowners to boost their property’s value, especially as many opt to “improve rather than move.” In mid-2010s studies, the average renovation added about 9% to a home’s value (roughly £24k on an average house) with an average 50% Return on Investment (ROI)​ [1]. That means homeowners typically recoup half again what they spend on upgrades in added property value. Fast forward to 2024 – rising costs and changing buyer priorities have shifted which projects yield the best bang for your buck. Below, we present an updated Home Improvement Index with ROI estimates, followed by insights on DIY vs. professional trends, the impact of sustainable “green” upgrades, and market factors influencing ROI today.

Top Home Improvements and ROI in 2024 (UK)

The table below highlights some of the top home improvement projects, their approximate ROI, median value added (profit), and average costs in the current UK market. ROI here is the value increase relative to cost (e.g. 100% ROI means you add value equal to the money spent). These figures are based on recent surveys and industry data, compared with historical benchmarks for context:

Key Insights from the 2024 Index:

• Space-Adding Projects Lead in Value:
  Creating more liveable space still yields the highest returns. Converting unused areas or adding extensions can significantly boost value. A loft conversion or large extension that adds a double bedroom and bathroom can increase a property’s value by up to 25% (versus ~22% in 2016)​ [12]. That translates to a healthy profit if managed efficiently. For example, a basic loft conversion might cost ~£50k and add ~£25k in value (50% ROI), but a larger one, including an en-suite, could nearly pay for itself (ROI approaching 100%). Nationwide’s analysis confirms that adding an extra bedroom (either via loft or extension) raises a home’s value by ~15% on average​ [13]. Even a modest garage conversion (turning an attached garage into living space) can yield very high ROI – often adding ~15% value for only a few thousand pounds spend​ [14] (essentially turning £5–£7k of cost into £20–£30k of value if an extra bedroom or office is created!). The trade-off is losing covered parking, but in areas where on-street parking is ample, the extra interior square footage is usually far more valuable.
• “Bang for Buck” Improvements:
  Some smaller-scale improvements yield an outsized ROI because they dramatically improve first impressions or functionality at a relatively low cost. For instance, a conservatory remains a favourite for adding space cheaply. In the past it topped ROI rankings at 108%​ [15]. Today, a well-built conservatory (typically £4k–£10k) still adds around 5–7% to property value on average​ [16] – roughly equal to its cost or a slight profit. In prime markets it can be even more (Savills estimate up to 12% value gain for a high-quality conservatory on a London home)​ [17]. Kerb appeal and exterior upgrades also give great returns: Basic landscaping of the garden, fresh exterior paint or rendering, and modernizing windows/doors tend to recoup ~70–80% or more of their cost in added value​ [18]. These projects aren’t very expensive, and they make a house more attractive to buyers – often reducing time on the market as well​ [19]. For example, tidying up an overgrown garden or adding a patio for £5k might boost the home’s value by ~£4k or more (80% ROI) by enhancing usable outdoor space. Upgrading an old front driveway to off-street parking is another high-impact improvement – in city areas, a parking space can add tens of thousands of pounds to value (one estimate: up to £50k in London)​ [20]., far above the few thousand it costs to install a driveway, although this varies by location.
• Kitchens and Bathrooms – High Importance, Moderate ROI:
  New kitchens and bathrooms remain among the most popular renovations and are big selling points for buyers, but they are also costly, so their pure ROI tends to hover ~50%​ [21]. In Zopa’s original index, a kitchen upgrade delivered 49–51% ROI​ [22], and that’s still a good rule of thumb. A midrange kitchen refit might cost £10–£20k and add about half again that (£5–£10k) in value. (It adds significant appeal – a beautiful kitchen can help clinch a sale – but you generally won’t double your money spent.) Likewise, a bathroom remodel often returns around half its cost in added value​ [23]. The exception is if you’re adding an additional bathroom: an extra bathroom can increase a home’s value ~5–6% on average​ [24], which can be very worthwhile if your home has few bathrooms to begin with. For instance, going from one to two bathrooms in a family-size house is a big selling point (Nationwide found a second bathroom adds ~6% value)​ [25]..
• Big Ticket Projects – Large Profit, Lower Percent ROI:
  An extension or major structural addition can yield the largest absolute profit (often £20k–£30k+ value added). Zopa’s past data showed extensions topping the list for median profit (~£14k in 2014)​ [26], and now typical value gains are even higher (an extra bedroom via extension ~15% value boost, which is ~£30k on a £200k home)​ [27]. However, these projects also have high upfront costs, so the percentage ROI (around 50–70%) is more modest​ [28]. For example, spending £50k on a full extension might increase the property’s value by ~£30k (ROI ~60%). New roofing or extensive structural repairs similarly may only break even or add slightly more value than they cost​. The payoff is that they safeguard your home’s value and marketability (a new roof prevents losing value due to a leaky, aged roof). Think of these as long-term investments: they make the home easier to sell and avoid buyers negotiating the price down for required work.

Note: The ROI figures above are estimates – actual returns vary by region and specific project quality. Importantly, any improvement must meet buyer expectations for your area; spending £50k on a kitchen in a small £150k starter home, for example, likely won’t recoup its cost. Smart budgeting and matching the level of improvement to the local market are key to maximizing ROI​ [29].

DIY vs. Professional Renovations: Impact on ROI

An interesting trend affecting renovation costs (and thus ROI) is the balance between DIY (Do-It-Yourself) projects versus hiring professionals. How you choose to execute a project can have a big effect on your return:

• DIY to Save on Costs:
  With rising labour rates, many homeowners try to cut costs by DIYing simpler projects. Nearly half of UK homeowners report saving over £1,000 by tackling DIY jobs instead of hiring a pro, and about 1 in 5 saved over £5,000 in labour costs​ [30]. These savings directly improve ROI – money not paid to a contractor is money added to your “profit” if the project still boosts the home’s value. For example, painting and decorating are prime DIY candidates: they’re inexpensive tasks where the cost is mostly your time. A coat of paint can refresh a room’s look and may add value well above the price of paint. Indeed, painting was one of the most common projects in 2021, but only 19% of homeowners fully DIYed their renovations; the majority (81%) did bring in professionals for at least part of the work​ [31]. Those who are “experienced DIYers” see the biggest benefits – in one survey, 36% of experienced DIYers saved >£5k vs. only 12% of novices​ [32]. Clearly, sweat equity can boost ROI, as every £1 saved on labour is £1 less you need the project to add in value.
• When to Hire the Pros: Despite the allure of DIY, more homeowners are turning to professionals for major renovations – 92% planned to use pros in 2021 for at least part of their project​ [33]. Complex projects like extensions, loft conversions, electrical re-wiring, or plumbing should almost always be done by qualified tradespeople. Poor workmanship can hurt your home’s value or incur higher costs to fix later, wiping out any initial savings. There’s also the matter of building regulations and safety – e.g. an improperly done electrical or structural job can be dangerous and will need to be brought up to code before sale. Many Brits admit they aren’t comfortable doing more than basic DIY: about 66% of homeowners say they lack the skills or confidence for serious DIY renovations​ [34]. In these cases, hiring a professional is wise to ensure the job actually adds value. A well-executed project by a pro can command a higher price premium, whereas shoddy DIY work might deter buyers or reduce the home’s value.
• DIY vs Pro ROI: The sweet spot for maximizing ROI often involves a mix of both approaches. Use DIY for cosmetic updates and prep work – for instance, doing your own demolition, painting, or landscaping – to save money, and bring in professionals for high-skill tasks or final finishes that must look top-notch. This hybrid strategy can keep costs down without sacrificing quality, improving your net gain. Also, consider your own time as a cost: a project dragging on for months of DIY evenings has an opportunity cost. Sometimes paying a pro can get the job done faster, letting you realize the value sooner (for example, finishing a loft conversion before a peak selling season). In summary, DIY can significantly boost ROI when done right – homeowners collectively saved over **£1 **billion by DIYing in recent years​ [35] – but it works best on simpler improvements. Know your limits; a botched DIY job can erode ROI and even cost more in the long run.

Sustainability-Focused Improvements and Their Impact on Value

In 2024, energy efficiency and sustainability have moved to the forefront of home improvements. With soaring energy bills and growing eco-consciousness, buyers and sellers alike are focusing on upgrades that make a home “greener” – such as better insulation, solar panels, efficient heating systems, and windows. These improvements can increase property value and appeal, though their ROI often comes in the form of faster sales or lower running costs as much as pure price uplift:

• Insulation and Energy Efficiency:
  Improving a home’s Energy Performance Certificate (EPC) rating is now a major selling point. Over 70% of homebuyers say a property’s energy efficiency is important in their decision​ [36], and many are even willing to pay more for a home with good green credentials (59% would pay extra for one predominantly powered by renewables)​ [37]. Upgrades like loft insulation, cavity wall insulation, and efficient glazing are relatively low cost and can have high ROI in multiple ways. For example, adding thick loft insulation may only cost a few hundred pounds yet can improve your EPC and trim bills – a Remodeling report found loft insulation can return ~108% of its cost in added value in some cases​ [38]. Another analysis by Knight Frank found that improving an average home from EPC D to C (e.g. via insulation or better heating) could add about 3% to the home’s value, roughly a £9,000 uplift, for an investment of around £5,500​ [39]. Bigger efficiency jumps yield bigger rewards: upgrading from a low F/G rating to a C could raise value by nearly 20% (~£64k increase on an average home)​ [40]. In short, insulating and draft-proofing your home tends to pay for itself over time – through energy savings and a higher resale value.
• Solar Panels:
  The popularity of residential solar photovoltaic (PV) panels has surged as installation costs fall and electricity prices rise. Solar panels make a home more attractive to cost-conscious buyers, and studies show they do increase property values. Estimates vary on the exact boost – one study of millions of home sales found installing PV adds roughly £1,800–£2,700 to the sale price on average​ [41]. That’s a fairly modest uplift (often <1% of home value), but other analyses suggest a larger effect: 4–6% increase in value on average for homes with solar, especially in certain regions​ [42]​. For instance, a typical 3-bed semi could see perhaps £10k higher value with solar panels than without. In percentage terms the ROI on solar isn’t sky-high if you only look at sale price – a ~£5k solar array might add a few thousand pounds in value (say ~50% ROI) – but the panels pay dividends in other ways: the current owner benefits from lower energy bills (often hundreds of pounds saved per year). And when selling, a property with solar tends to attract more interest and may sell faster​ [43], since buyers appreciate the future energy cost savings. Homes with renewables also often achieve higher EPC ratings, which, as noted, can command a price premium. As the UK moves toward greener standards, solar panels and other renewable tech are increasingly seen as assets rather than oddities.
• Efficient Heating & Green Tech:
  Replacing an old gas-guzzling boiler with a modern condensing boiler or heat pump can boost your EPC score and appeal to eco-minded buyers. While the UK government’s plans to ban new gas boilers by 2035 have been in flux, there is a clear policy push toward low-carbon heating. A heat pump installation is expensive (~£7,000–£15,000), and on its own may not recoup full cost in sale price yet. However, it significantly lowers heating bills and future-proofs the home. Expect buyers (and lenders) to increasingly factor in efficient heating and good insulation when valuing homes. Features like triple-glazed windows, smart thermostats, underfloor insulation, and EV charging points can differentiate a property. They might not have had explicit ROI calculations a decade ago, but in 2024 they contribute to a home’s overall value package. For example, an electric car charging point can make a home more marketable as EV adoption grows, and upgraded double or triple glazing both saves energy and enhances comfort, which buyers are willing to pay for indirectly.
• Regulatory and Market Influence:
  Sustainability improvements are also driven by regulations. The UK government aims for as many homes as possible to reach EPC band C or better in coming years​ [44]. Nearly half of homes are at least C now (47%, up from just 16% in 2011)​ [45], and the trend is accelerating. Landlords in particular face proposed minimum EPC requirements to be allowed to let their properties. This means energy-efficient upgrades have strategic value: if you invest in them now, you not only make your home more valuable and sellable today, but you’re also aligning with future standards that could otherwise limit your buyer pool or rental options. All these factors give sustainable homes a value edge. As one survey put it, “energy efficiency…continues to occupy the top spot” for what buyers and tenants prioritise​ [46]. In fact, almost all buyers (and renters) now say a home’s energy efficiency is crucial or important to them​ [47]. Many are willing to pay a premium for lower running costs​. So, while a solar panel or insulation roll might not be as visually exciting as a new kitchen, these upgrades can substantially improve your home’s market value resilience – they make sure your property isn’t left behind in a market that’s increasingly favouring green, efficient homes.

Market Factors Influencing ROI in 2024

Beyond the projects themselves, broader market forces in the UK are shaping the return on home improvements:

• Rising Material and Labour Costs:
  In recent years, the cost side of the ROI equation has been under pressure. Building material prices have surged, driven by supply chain issues and high demand. Since 2020, overall material costs are up about 35%​ [48], with peaks in 2021–2022 and only a slight easing in late 2023. Key components like lumber, steel, and concrete saw especially steep hikes (e.g. pre-cast concrete products +59% since 2020)​ [49]. At the same time, a shortage of skilled tradespeople has pushed labour wages higher – construction wages rose ~4.7% year-on-year in Q2 2023​ [50]. For homeowners, this means renovation projects now cost significantly more than they did a few years ago. Higher costs can shrink ROI, since if you spend £10k more on an extension due to inflation, the value added to the house might not have increased proportionally. We’ve indeed seen some ROI percentages dip slightly from a decade ago for that reason. For example, if a conservatory that cost £5k in 2014 now costs £10k in 2024, but adds a similar ~£10k in value, the ROI goes from ~108% to ~100% – still solid, but no longer “money for nothing.” It’s important to budget carefully and shop around for quotes to ensure rising costs don’t erode your potential gains. On a positive note, inflation in construction costs has started to level off by late 2024​ [51], which may help ROI stabilise.
• Changing Buyer Priorities:
  The features homebuyers value have shifted in the wake of the pandemic and growing environmental awareness. There’s been a “race for space” – buyers pay premiums for extra rooms, home offices, and gardens​ [52]. This trend has bolstered the ROI of loft conversions, extensions, and any improvement that adds usable square footage. Even a small garden office or studio can be a selling point now that work-from-home is common. High-speed broadband availability (and space to use it) is another new priority – a JLL survey found home office space and good internet are high on wishlists alongside energy efficiency​ [53]. On the other hand, certain flashy upgrades might matter less; for example, buyers today might prefer a well-insulated home with a heat pump over one with an extravagant media room but poor insulation. Understanding what buyers in your market value in 2024 is crucial. Broadly, energy-efficient, low-maintenance, and multi-functional spaces are in demand. Family buyers still love open-plan kitchen/dining areas, but some now also appreciate flexible layouts (the ability to close off a home office, etc.). The net effect on ROI: projects aligning with current buyer preferences (extra bedroom, energy upgrades, modern kitchen) will yield higher returns, whereas out-of-step projects (e.g. a luxury upgrade that overshoots what local buyers seek or can afford) may not pay off. Always consider your neighbourhood’s context – for instance, off-street parking yields huge value in a city​ [54], but in a rural village with ample street parking it won’t add nearly as much.
• Housing Market Conditions:
  Overall housing market trends influence improvement ROI as well. In a rising market, home improvements effectively ride a tailwind – general price growth can amplify the value added by upgrades. The 2013–2016 period saw strong house price rises, which helped many projects “lift all boats.” By contrast, 2023 has seen a cooling: UK house prices fell about 1.8% over 2023 (and are ~4.5% below their late 2022 peak)​ [55] amid higher interest rates and cautious buyers. In a flat or declining market, it’s harder to out-renovate the market – you can still add value, but there’s less general price inflation to mask or boost your ROI. This puts pressure on choosing improvements wisely. Buyers facing high mortgage costs are more budget-conscious, so while they appreciate improvements, they won’t always pay dramatically more for them if overall prices are soft. That said, a well-improved home in a slow market can stand out and sell faster. When buyers are scarce, houses with the “right” improvements (energy efficient, move-in ready, extra space already added) have a competitive edge and can avoid low-ball offers. Market conditions also affect whether homeowners invest in improvements in the first place – with high interest rates, some may not borrow for renovations, potentially reducing demand for contractors and stabilizing costs. Additionally, stamp duty and moving costs remain high, which incentivizes homeowners to improve their current homes rather than move. This trend, observed in earlier Zopa surveys (e.g. in 2014, 82% of renovators weren’t planning to sell soon​ [56]), continues in 2024 as many choose to create their “forever home” and wait out market volatility. The longer you stay in a home after improving it, the more likely any value gains will eventually be realized (and you get to enjoy the improvements yourself in the meantime).
• Regulatory Influences:
  We touched on energy regulations pushing green upgrades. There are also planning and tax factors. Relaxed Permitted Development Rights in the UK make certain extensions and conversions easier (no planning permission needed for many loft conversions or small extensions), which can improve ROI by saving time and fees​ [57]. On the flip side, any changes in regulations (for example, stricter rules on adding dormer windows, or local conservation area restrictions) can add cost or complexity, slightly damping ROI. Keeping up to date on planning rules, building codes, and any available government incentives (grants for insulation, solar, heat pumps, etc.) can help homeowners maximize returns and reduce out-of-pocket costs for sustainable improvements. For instance, if there are local council grants or 0% VAT offers for certain green retrofits, taking advantage can improve your net ROI. Always factor in transaction costs too: if you’re renovating to sell, remember expenses like estate agent fees and stamp duty on your next purchase aren’t reflected in ROI of the project but do affect your overall financial outcome.

Comparison with Historical Data (2014 vs 2024)

Looking back at Zopa’s earlier Home Improvement Index reports (2014 and 2016/17) provides a useful perspective on how the home improvement ROI landscape has evolved:

• Then vs Now – ROI Rankings:
  In 2014, Zopa’s index crowned a conservatory as the top ROI project at 108% (spend ~£5.3k to gain ~£5.75k profit)​ [58]. A decade later, in 2024, conservatories are still a strong option, but not quite as unrivalled – typical ROI is closer to ~100% for a quality build​ [59]. This slight shift is due to higher costs and the fact that other extension types (full room additions) have caught up in popularity. Garden improvements were also stars in 2014 with ~88% ROI​ [60], reflecting the value of kerb appeal. However, later surveys found that once everyone spruced up their gardens, the marginal ROI dropped – by 2017 a “garden makeover” showed only ~14% ROI on average​ [61]. This indicates that the first bit of landscaping (making a wilderness into a usable garden) adds a lot of value, but additional luxury garden spend yields diminishing returns. In 2024, we assume a moderate ROI (~80%) for typical landscaping, but not the nearly double-your-money seen in earlier data, unless it adds something substantial like parking or an outdoor office.
• Extensions & Conversions – More Valuable than Ever:
  Space-adding projects have always been lucrative, but they’ve become even more valuable post-2010s. Zopa’s mid-2010s research showed lofts and extensions returning ~50–70% ROI and adding significant value​ [62]. Today, demand for space (partly due to pandemic lifestyle changes) has pushed those value gains higher. Nationwide’s 2023 analysis found a loft conversion + big bedroom + bath can add 25% value (vs 22% in 2016)​ [63] – a noticeable uptick. In essence, a well-done loft or sizable extension can nearly increase a home’s value proportionately to the floor area added, especially in areas where space is at a premium. ROI-wise, the percentage may still be around 50–100% depending on cost, but the absolute added value is greater now because home prices per square foot have risen. Back in 2014, an extension yielded ~£14k profit​ [64]; now it’s not uncommon to see £20k–£30k gain from a similar project, albeit with higher spend. Another historical change: garage conversions and home offices barely featured a decade ago, but now they’re one of the best improvements you can do for the money. Converting underutilized space (garage, loft, box room) into an office or extra bedroom has extremely high ROI in 2024, reflecting new working patterns – something not as emphasized in 2014.
• Kitchens and Bathrooms – Steady Importance:
  The value of a great kitchen or bathroom has been a constant. Zopa’s 2014 and 2017 findings put kitchen ROI around 50%, and bathrooms ~48%​ [65]. Our 2024 report similarly pegs them ~50%. What has changed is the approach: earlier homeowners might have installed high-end bespoke kitchens chasing a wow-factor, whereas now there’s more awareness of not over-personalizing. The advice remains to renovate kitchens/baths in a broadly appealing way to maximise value​ [66] – that hasn’t changed. One notable stat: Zopa’s 2017 index actually found decorating (basic redecoration) had a 62% ROI​ [67], which underscores that simpler refreshes go a long way. That’s a timeless tip – a coat of paint and modern fixtures can yield big returns relative to their low cost, both in 2014 and 2024.
• Energy Upgrades: From Afterthought to Priority:
  Perhaps the biggest shift from past to present is the rise of energy efficiency as a value driver. Zopa’s 2014/2016 reports didn’t even list insulation or solar panels in their top ROI projects. At that time, green improvements were often seen primarily as cost-saving measures on bills, not value-adding renovations. Fast forward to now: improving your EPC rating can absolutely boost your sale price (as discussed, potentially several percent or more)​ [68]. This is a new dimension to ROI that wasn’t in the spotlight before. An owner in 2014 might opt for a new kitchen over insulation; in 2024, many savvy owners first ensure the basics like insulation, efficient heating, and double glazing are done, knowing buyers will pay a premium for a well-rated, energy-efficient home (and may even be required to by future regulations). Essentially, “invisible” improvements have gained visibility in their impact on value.
• Overall ROI Trends:
  Despite cost inflation, many home improvements continue to pay off handsomely in the UK. The average ROI has remained in the ballpark of 50% – meaning you won’t usually profit every pound spent, but you’ll get a significant portion back in value, plus enjoy the upgrade. It’s worth noting that few home projects ever consistently yielded >100% ROI (i.e., making more money than you spend) – even in 2014, only the conservatory surpassed that threshold on median. That’s still the case in 2024 (only very low-cost conversions like garage to room can easily double your money). The purpose of improving, for most, is as much about lifestyle and avoiding the hassle of moving as it is about pure financial gain​ [69]. In 2014, over 80% of people improved their home to live in it longer, not to flip it​ [70], and in 2024 homeowners express similar sentiments. The good news is that the projects that make your home nicer to live in often do increase its value – so it’s a win-win, even if the profit margin isn’t sky-high on every project.

Squaring up

In 2024, UK homeowners should approach renovations with a strategic eye: focus on adding space and efficiency, keep an eye on costs (DIY where sensible, negotiate with contractors), and tailor improvements to what the market values today. A balanced investment – from a warm, insulated home to an open-plan kitchen and perhaps a new loft bedroom – can significantly boost your home’s worth while improving your quality of life. As our updated Home Improvement Index shows, the right projects can still yield ROI between ~50% and 100%+, even in a changing economic climate. By learning from past trends and adapting to current priorities (think green and spacious), you can make sure your hard-earned renovation budget pays off when it comes time to sell or revalue your home.

Disclaimer:
This article is provided for informational purposes only and should not be considered as financial or investment advice. Home improvement ROI figures and profit estimates are based on general industry data and may vary by individual circumstances. Please consult a professional advisor before making any financial decisions related to home renovations.