The Best Ways to Add Value to an Investment Property
Please note this article is intended to help you generate ideas and does not constitute financial advice of any sort.
People across the UK are seeking to build wealth via investment in property. Property investment can be relatively stable and offer high returns, whether holding onto your asset or selling it. There are countless ways you can build upon your investment increasing it value. Buy-To-Lets (BTL), House of Multiple Occupation (HMO), and Property Flipping are all ideal ways to see a return on your investment. Also consider turning a property into serviced accommodation or an Air BnB to further diversify your revenue streams. Edgehill Property Group can help you renovate your newly purchased property into an income machine.
Make Targeted Renovations Improving Appeal to and Function
Renovations are always a method buyers consider when purchasing a new property. But what parts of it should you renovate? Before you make any decisions, you should take note on your area ceiling price. Simply asking your local agent or doing some research on Zoopla will help you recognise what properties like yours are selling for. As a rule of thumb try not to spend more on renovations and the purchase than the ceiling price of the home.
Depending on your wriggle room you can begin to plan renovations expensive renovations like a new roof, or large modern kitchens and bathrooms are more expensive but can add significant value to a property. If you don’t have much financial room to work with you can also make targeted renovations to make your property more appealing to buyers or renters; a fresh coat of paint, clean garden, and new kitchen countertops can easily transform a home.
In addition to aesthetic improvements, you could also seek to improve the function of your home, removing walls to make a large spacious open plan feel or adding a partition wall in a large room to create an extra bedroom, can all increase your properties resale value. Also consider a downstairs bathroom if space allows as more bathrooms are much more appealing to renters or buyers with larger families.
Work Within Your Permitted Development to Create Space
Many new investors could be put off of adding large scale renovations to change the space within a property because they don’t want to go through the ordeal of obtaining planning permission, however there are many improvements you can make to your property that don’t require planning permission and fall within your permitted development rights.
If your property already has a converted basement then you can renovate it to create a relaxing bedroom or living room without planning permission. However, if you are creating a new basement or adding a light well, may require planning permission.
A loft conversion can add significant value to your home and can easily fall within permitted development providing you are not altering the shape / structure of your roof and not exceeding size limits. A new loft conversion is an ideal way to create an additional bedroom or living space within your property.
Smaller Extensions, a smaller rear or side home extension is a perfect way to add function and style to your home. Many new investors do not realise that smaller extensions may not require planning permission and fall within your permitted developments rights. Using our sister company Edgehill Builders, you can learn quickly how much you could extend your new property by without planning permission.
Consider Making Your Home More Energy Efficient
The energy efficiency rating of your property is becoming more and more crucial to buyers and renters alike. An energy efficient home is much more appealing to environmentally conscious homeowners, especially the younger demographic in the UK. As well as making your property more environmentally friendly an efficient home will also help the occupants save on energy bills throughout the year.
Energy efficient upgrades you could consider are a new efficient boiler, new uPVC windows and composite doors, cladding, loft insulation, a new roof, or a full electrical rewire. All these additions will not only improve the energy efficiency of your home but could also increase its market value for both sale and rental purposes.
As the UK strives to hit Net Zero by 2050 there are many government backed incentives for improving the energy efficiency of your properties. Some of the incentives that could help you are –
ECO4 Scheme – With a drive for more energy efficient homes the government can help households gain access to new boilers, heat pumps, and renewable energy solutions.
The Great British Insulation Scheme (GBIS) – This scheme administered by Ofgem aims to help occupants improve the energy efficiency of their homes and reduce energy bills with underfloor insulation, roof insulation, cavity wall installations, and more.
LA Flex Scheme – This scheme is an extension to the governments ECO Scheme; the difference is the eligibility criteria is made by your local authority rather than the government increasing your chances of approval.
Improve The Aesthetics of Your Property
Often overlooked the exterior of a property could be the clincher in a new sale or not. A good first impression of a home can drastically change the viewers outlook on it. You can make both financial and free upgrades to your existing properties exterior to improve its aesthetics.
Free Upgrades you could make – A simple clean up of the front and rear garden and maintaining the cleanliness of the property could make a huge difference to a buyer viewing. A well-maintained exterior of a home signifies quality and could inform a buying decision without costing you any money.
Paid Upgrades you could make – Affordable and effective upgrades to improve the aesthetic appeal on your home are things such as exterior painting, painting the front door or adding a new composite door, and spraying the uPVC window frames. You can also opt for some more expensive exterior upgrades that will also benefit your home such as adding cladding or ensuring all pointing of the brickwork is up to date.
Improve Your Garden – Gardens are often overlooked but can perfectly complement a home, adding affordable items such as decking, new fence panels, or patio furniture can easily make your garden and property look more inviting.
Consider a Change of Use
Many properties can provide you with ample opportunities to maximise your yield from them. Larger homes can be converted into HMOs or Serviced Accommodation allowing you earn more from the amount of rooms within your property. While renovations can be much more costly and complicated using experienced HMO and serviced accommodation renovators like Edgehill Property Group can expedite the process for you.
Your location will be relevant to your decision making, if your property is near a city centre, or transport links then the rooms will be in much higher demand. You can also price accordingly based on location. Making revenue from multiple rooms within a property will mean you can still turn a profit even if the property isn’t fully occupied.
Act Quickly with The Right Funding
The property market can be a very competitive space to operate in especially with large portfolio holders outbidding you for properties with more resources available to them. When working with Edgehill Property Group you will get access to our team of dedicated financial specialists meaning you can be approved for a bridging loan or other finance options within 48 hours allowing you to seize any opportunity that arises.
Focus on Location and Market Trends
Location is king in the property market, and understanding market trends can guide your value-adding efforts. Buy in an up-and-coming area where property values are rising, and your renovations will amplify that growth. You may have heard the age-old advice of “but the cheapest property on the most expensive street you can afford” This is because external factors such as neighbours, area, and school catchment areas can all impact your property value.
Edgehill Property Group’s deep knowledge of the Northwest property market can help you pinpoint high-potential locations. Our strategic advice ensures your investment aligns with current trends, enhancing both capital growth and rental yields.
Partnering with Edgehill Property Finance
Adding value to an investment property requires a mix of vision, execution, and financial savvy. Edgehill Property Group brings all three to the table. Our comprehensive services cover every stage of the process:
Renovation Expertise: From cosmetic fixes to full extensions, their builders maximize your property’s potential within your budget.
Funding Solutions: Whether it’s a BTL mortgage, HMO financing, or a bridging loan for a flip, their finance team secures the best deals.
End-to-End Support: They manage projects from start to finish, including planning, construction, and even tenant sourcing for rental properties.
In Conclusion
Adding value to an investment property isn’t just about spending money, it’s about spending it wisely. Strategic renovations, space conversions, energy upgrades, and Kerb appeal enhancements can transform your asset, while smart financing and market awareness ensure profitability. Whether you’re flipping for a quick return or building a rental portfolio with BTLs or HMOs, the right approach can unlock substantial gains.
Partnering with Edgehill Property Group takes the guesswork out of the process. Their experience, tailored services, and funding expertise make them an invaluable ally in your property investment journey. Ready to boost your property’s value? With the right strategy and support, your investment can reach new heights in 2025 and beyond.
