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A powerful way to add value to your home or rental property is to add another room. However, to maximise your financial gain you need to add the right room in the right circumstances. 

There are two main reasons you may want to add a room:

  • To make the property more comfortable, attractive, useable, useful or versatile – which will usually increase its capital value
  • To increase the amount of rent you can get from the property – which will also usually increase its capital value.    


You can add a room by:

  • Building an extension
  • Converting non-living space, such as a loft or coal cellar, into living space
  • Dividing a large room to form two rooms
  • Changing the use of a room – for example, you could convert a bedroom into a bathroom or vice versa.

In some of the above instances, you will be adding floor or living space and such actions should almost certainly increase the value or price of your property.

You may be able to add value even without adding floor space – for instance where you convert a large bedroom into two, thereby making the property useable by more people.


If your property is compromised or blighted in some way in terms of size or layout, it makes sense to rectify the position by adding or creating a room whether by building, conversion or reconfiguration. 

A downstairs bathroom – especially if accessible from the kitchen – is usually a big negative for buyers and you may be able to rectify the position by building a two storey rear extension or using one or part of an existing upstairs bedroom as a bathroom.

If you own a rental property, you should be able to recover more rent by adding a bedroom. 

You may be most inclined to add a room where that will make your property more:

  • Saleable or
  • Profitable.

The rooms most likely to reward you with a higher price and/or greater saleability are a:

  • Bedroom
  • Ensuite bathroom
  • Downstairs toilet
  • Conservatory.

Be cautious about adding living space without increasing the number or type of rooms. For instance, you may add an extension to give you a bigger kitchen – but whether that will add as much value as adding say a second bedroom, office or conservatory will depend on the circumstances.

8 fab ways to add value to your home (things to do to add value to your property)
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Raise funds by remortgaging (borrow funds to add value by a remortgage)
40 ways to add value to a home (a must use action list for savvy homeowners)


The cost of adding a room will depend on how the room is added. Your greatest expense will be where you build an extension or convert a loft or cellar/basement.

The average cost of a typical extension outside London is probably in the region of £1,200 to £1,500 per m2. In London and the South East the average cost is probably £1,500 to £2,000 per m2.

Costs will be lower and more cost-effective if you are simply reconfiguring existing space – such as where you divide a room into two or change the use of a room. 


It is thought an extra bedroom adds around 11% to the value of a home. A large loft conversion can add around 20%.

A good quality conservatory is thought to add about 5%.

If you have an investment property – especially an HMO – and you add an extra bedroom or bedsit, the increase in rental income could result in a proportionate increase in the capital value of the building.

Property is such a high-performing asset, adding to its value is almost always worthwhile – especially in the case of high value properties on the best streets in the best areas. 

Have you added living space to a property? What impact did it have on saleability or value?  Please leave your comments, observations or questions below.

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Dalton Barrett
Rebel Property Coach

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