How Much Does an Extra Bedroom Add to a Home’s Value?

When it comes to increasing the value of your home, one of the most common and impactful renovations is adding an extra bedroom. Whether you’re considering converting an attic, expanding your living space with an extension or repurposing an existing room, an additional bedroom can make your property more appealing to potential buyers and increase its market value.

But just how much value does an extra bedroom actually add? The answer isn’t straightforward, as it depends on various factors such as location, property size and the quality of the addition. In this blog, we’ll explore the financial impact of adding a bedroom, how much value you can realistically expect to gain and whether adding an extra bedroom will be worth it for you.

How much value does an extra bedroom add?

Adding an extra bedroom can significantly increase a home’s value. However, the exact number will vary depending on a myriad of factors, including the property market and location.

On average, adding an extra bedroom can increase a home’s value by 15%. In monetary terms, adding an extra bedroom could see a return of around £15,000 to £30,000, depending on the location and property type.

What affects how much value an extra bedroom will add?

When considering the value an extra bedroom can add to a property, it’s important to understand the various factors that influence its impact. This includes the size and location of the property, the quality of the addition and the broader market trends and buyer preferences.

Property size and location

The size of the property and its location are two of the most important factors when determining the added value of an extra bedroom. Larger homes typically see a more significant increase in value from an additional bedroom, as there’s often more room for expansion without overcrowding the space.

The location also plays a crucial role. For example, in areas where family-sized homes are in high demand, such as suburban or commuter zones, an extra bedroom can make a property much more desirable to buyers. In contrast, in densely populated urban areas or regions with limited space, the return on an extra bedroom may be lower as homes are already priced higher due to location, and buyers may prefer open plan living over additional rooms.

Quality of the addition

The way an extra bedroom is added can significantly affect how much value it brings to a property. High-quality, well-integrated additions, such as a loft conversion or an extension, can increase the property’s value considerably, especially when the new room is both functional and aesthetically appealing.

However, the quality of the renovation matters too. If the work is poorly executed, it could negatively impact the home’s value. A bedroom that feels cramped or poorly lit, such as one added in a basement or an attic with limited headroom, might not attract the same level of interest from buyers and could even lower the property’s value if it’s perceived as subpar.

Market trends

Market trends and buyer preferences can influence how much value an extra bedroom adds. In some regions, there may be a growing demand for larger homes, particularly for families looking for more space, so adding an extra bedroom would likely yield a higher return. In other areas, however, the trend may favour homes with open-plan living spaces or smaller, more modern layouts, meaning that adding a bedroom might not be as lucrative.

You could consult with a local estate agent to gain their insights on the local market or look at the types of properties that seem to be selling quickly in your area. If you notice that larger family homes seem to be coming off the market quickly, this could be a sign that homes with more bedrooms are in demand.

How much does it cost to add an extra bedroom?

The cost of adding a bedroom can vary widely depending on the method of addition, the existing structure of the home and the location of the property.

A simple conversion of an attic or basement into a bedroom might cost anywhere from £5,000 to £15,000, while building a full extension could range from £20,000 to £50,000 or more, depending on the scale of the project.

You’ll need to factor in costs for your finishes and interior design, such as furniture, internal doors and decorating. Additional costs may also include permits, materials and the need for professional tradespeople such as architects, builders and electricians. You should get detailed quotes from contractors and consider all potential expenses, including any structural work required to ensure the new room complies with building regulations.

Is adding an extra bedroom worth it?

When deciding whether adding a bedroom is worth the investment, it’s important to weigh the renovation costs against the potential return on investment (ROI). While adding a bedroom can increase a property’s value, the increase may not always cover the full cost of the renovation.

For example, a high-quality attic conversion might cost £15,000 to £20,000, but the resulting increase in home value might only be £10,000 to £15,000, making it a less profitable project in some cases. However, in areas with high demand for family homes or limited space, the value added by an extra bedroom could be far greater.

To make an informed decision, it’s essential to conduct thorough market research and consider factors such as the price per square foot in your area, the size of your home and how many comparable properties in the neighbourhood have multiple bedrooms. Balancing these costs and potential returns will help you determine whether the investment is worthwhile for your specific property.

JB Kind has a huge range of interior doors in a variety of styles, perfect for your new bedroom. Download our brochure or contact us to find out more.