The UK property market has shown steady resilience throughout 2025, with house prices rising modestly and buyer demand remaining stable despite higher mortgage rates and cost-of-living pressures. According to the latest Nationwide House Price Index, annual growth edged up to 2.4% in October, and the average property price now stands at £272,226.
But alongside this stable market, one trend continues to rise: homeowners are investing in improving their homes more than ever before. From new bathrooms to loft conversions and solar panels, people are transforming their spaces for comfort, long-term value, and greater efficiency.
So, what’s driving this shift, and which improvements boost your property’s value?
Let’s break it down.
Why Are Homeowners Renovating?
Nationwide’s recent research reveals a clear picture of what’s happening inside Britain’s homes, and why.
To Make Their Home Look Nicer (54%)
The most common motivation is simply creating a more enjoyable space. Whether it’s new décor, updated layouts, or modern finishes, homeowners are seeking homes that feel fresh and reflect their lifestyle.
To Boost Property Value (35%)
Over a third of renovators are thinking strategically by investing in improvements that could raise their property’s market value. This motivation is highest among younger homeowners, who see renovations as part of their financial future.
To Modernise and Make the Home More Habitable (32%)
Older properties in particular often need updates to bring them up to modern living standards, from rewiring and insulation to updated layouts.
To Add More Space (26%)
With flexible working, family changes, and lifestyle shifts, extra space is more valuable than ever. Extensions, loft conversions, and additional bathrooms are becoming increasingly popular.
To Prepare for a Sale (Just 7%)
Interestingly, very few homeowners are renovating with the sole intention of selling. Most improvements are about quality of life now, with the bonus of added value later.
The Most Popular Home Improvements Right Now
Based on national data from the last five years:
Kitchen & Bathroom Upgrades (71%)
These remain the most popular updates across all age groups, and for good reason. Although the index cannot quantify the exact value added, updated kitchens and bathrooms are almost always high on buyer wish-lists.
Additional Bathrooms & Toilets
- 42% added a bathroom or ensuite
- 25% added an additional toilet
More bathrooms make a home significantly more practical and attractive to modern buyers.
Green Improvements (34%)
Eco-friendly upgrades are on the rise, with:
- 56% of green-focused homeowners add solar panels
- Younger homeowners (25–34) being the most enthusiastic renovators, with 69% installing green features
Sustainability is no longer a luxury, it’s becoming a standard expectation for the future.
Which Improvements Boost Your Property’s Value?
While some upgrades improve comfort, others significantly boost property value. Nationwide’s analysis highlights a clear winner:
Loft Conversions or Extensions with a Double Bedroom & Bathroom – Up to 24% Added Value
A large loft conversion or extension incorporating both a bedroom and bathroom can increase the value of a typical three-bed, one-bath home by as much as 24%.
Creating an Additional Double Bedroom – Around 13% Added Value
Adding a well-sized bedroom (around 13m²) provides a strong return on investment, especially in smaller homes where every bedroom counts.
More Floor Space – Approximately 5% Added Value for Every 10% Increase in Area
Buyers will pay more for space. Even modest extensions can add surprisingly strong value.
Solar Panels & Green Features – A Growing Selling Point
While the Index doesn’t assign a specific percentage value increase, demand for green homes is rising sharply. With nearly 1.5 million homes in England now featuring solar PV panels, buyers are increasingly seeking lower running costs and better energy performance.
What This Means for Homeowners and Buyers
If You’re a Homeowner
Renovating isn’t just about aesthetics; it’s about creating a home that works for you and holding onto long-term value.
- Want to increase comfort? Focus on kitchens, bathrooms, and general modernisation.
- Want to increase value? Consider adding space or an extra bedroom.
- Want to future-proof your home? Think green: solar, insulation, energy-smart upgrades.
These changes can significantly increase your home’s appeal whenever you do decide to sell.
If You’re a Buyer
A revamped home can mean:
- better energy efficiency
- lower future renovation costs
- more usable space
- modern layouts aligned with today’s lifestyle
And with house prices currently rising modestly, buying an upgraded home can be a smart way to secure long-term value.
Thinking About Making Changes or Curious How Renovations Could Affect Your Home’s Value?
As your local property experts, we can help you understand:
- which improvements matter most in your area,
- how your renovation plans could affect your home’s value, and
- what buyers are prioritising right now.
If you’re considering selling in the future, or simply want advice on how to maximise your home’s potential, we’re here to help.
Get in touch with our team for friendly, expert guidance.
