Renovations That Add the Most Value

Waqas Ali
Jan 12
3 min read

Not All Renovations Are the Same

Every investor wants to buy a house, fix it up, and see its value go up. But not every renovation gives you the return you want.

Some upgrades look excellent but don’t do much for your home’s value. Others quietly add thousands to your equity and rental yield.

At Genius Academy, we teach investors to think like valuers instead of decorators. The goal isn’t just to make the property look better—it’s to make it worth more.

Why ROI Is More Important Than Spending

Many landlords make the mistake of over-renovating, spending £20,000 on finishes that only add £10,000 in value. ROI (Return on Investment) shows whether your money is working efficiently.

Formula: ROI = (Value Added ÷ Cost of Renovation) × 100

If you spend £10,000 and the value increases by £25,000, ROI = 250% because £25,000 ÷ £10,000 = 250%.

That’s the strength of strategic refurbishment — getting the most value for every pound spent.

1️⃣ Kitchen Upgrades: The Heart of ROI

A modern, neutral kitchen is one of the most appealing features for both buyers and renters.

Average cost: £4,000–£8,000
Average value increase: £10,000–£15,000
ROI: 125%–200%

Advice:

Use timeless, neutral colours and designs.
Replace doors and countertops before doing a full remodel.
Add built-in appliances to increase perceived value.

2️⃣ Bathroom Refresh: Small Space, Big Effect

Bathrooms are all about comfort and cleanliness. Even a small refresh can improve both value and rental demand.

Average cost: £3,000–£5,000
Average value increase: £5,000–£8,000
ROI: 100%–160%

Advice:

Choose bright tiles and strong lighting.
Add modern storage and fixtures.
Prioritise ventilation and durability.

3️⃣ Structural Changes: Making Space Work Smarter

Turning unused areas — like dining rooms, large landings, or lofts — into bedrooms or utility rooms can significantly raise value.

Examples:

Adding a bedroom: +10–20% value increase
Open-plan kitchen/dining: +5–10% value increase
ROI: 150–300% (depending on demand)

Tip: Always check planning and building regulations before starting major work.

4️⃣ Curb Appeal and Exterior Improvements

First impressions are powerful — especially for valuations and rental listings.

Upgrade	Cost Range	ROI
Repainting exterior	£1,000–£2,000	~100%
Landscaping / driveway	£2,000–£4,000	80–120%
New windows & doors	£2,500–£5,000	90–150%

Often, small exterior improvements yield big perception and marketing gains.

5️⃣ Energy Efficiency Upgrades

With rising utility costs and stricter EPC regulations, energy-efficient homes are more valuable and mortgage-friendly.

Examples:

Loft insulation: ~£400 → ROI 200%
Double glazing: £3,000–£5,000 → ROI 80–120%
Efficient boiler: £2,000–£3,000 → ROI 100%+

Higher EPC ratings also make properties more rentable and attractive to lenders.

6️⃣ Full Cosmetic Refresh

A simple refresh—painting, new flooring, and modern fixtures— offers one of the highest returns for minimal work.

Average cost: £2,000–£4,000
Average value increase: £8,000–£10,000
ROI: 200–300%

Even older homes can feel new again with fresh décor and lighting.

Example: Renovations Ranked by ROI

Type of Renovation	Average Cost	Average Value Added	ROI (%)
Cosmetic Refresh	£3,000	£9,000	300%
Layout Improvements	£10,000	£25,000	250%
Kitchen Upgrade	£6,000	£12,000	200%
Bathroom Update	£4,000	£6,000	150%
Energy Efficiency	£3,000	£3,000	100%
Curb Appeal	£2,000	£2,000	100%

Think About Why You Want to Renovate

Not every renovation must be luxurious — it must be profitable. Each improvement should either:

Increase property value
Raise rental yield
Reduce long-term costs

Before you start painting, ask yourself:

Will this upgrade attract better tenants?
Will it raise the value or the yield?
How long will it take to pay for itself?

At Genius Academy, we remind investors that smart renovations don’t just change the look—they change the balance sheet.

Keep Learning

📘 Related Lesson: BRR (Buy, Refurbish, Refinance) Strategy

📊 Related Blog: How to Finance a Renovation