Outdoor space often comes into sharper focus during the summer months, but which garden improvements are most likely to deliver a return when it comes to property values? We take a look at new research that reveals which outdoor upgrades could deliver the biggest returns on investment.
Interestingly, the upgrades delivering the greatest financial return were not necessarily the most expensive. Instead, several practical garden additions outperformed larger projects once sellers deducted installation costs.
Garden room tops the rankings
According to the research, a garden room or home office offers the strongest potential return.
Based on the current average UK property price of £278,880, a garden room could add 7.5 per cent in value, equivalent to £20,916. After installation costs of £12,000, homeowners could achieve a net gain of £8,916.
A prefabricated summer house ranked second, with a potential net value increase of £8,155. While the addition could add £11,155 to a property’s value, installation costs of around £3,000 reduce the overall gain.
Landscaping and patios also perform strongly
Meanwhile, a landscaped garden ranked third overall. The research found that landscaping could increase property values by 4.5 per cent, adding an estimated £12,550. After average costs of £5,400, the potential net gain stands at £7,150.
Patio and decking areas also performed well. An average 40 square metre patio or decking installation could increase property value by 4.3 per cent. As a result, homeowners could achieve a net gain of £6,792 after installation costs.
Meanwhile, adding a garden shed or dedicated storage area could generate a potential value uplift of £5,222 after installation costs.
Outdoor entertaining features offer mixed returns
The research also assessed a number of features designed to enhance outdoor entertaining space.
An outdoor garden bar was estimated to provide a net gain of £3,257, while conservatories and mid-range outdoor kitchens generated potential gains of £3,127 and £3,117 respectively.
Although conservatories and outdoor kitchens can add substantial headline value to a property, increasing value by an estimated £18,127 and £15,617 respectively, their higher installation costs of around £15,000 and £12,500 reduce the potential net gain to £3,127 and £3,117.
At the lower end of the rankings, a basic BBQ island or fire pit area was estimated to add £1,847 after costs, while a mid-range hot tub generated the smallest net gain at £1,616.
Top garden improvements by estimated net value gain
1. Garden room/home office – £8,916
2. Summer house – £8,155
3. Landscaped garden – £7,150
4. Patio/decking – £6,792
5. Garden shed/storage – £5,222
6. Garden bar – £3,257
7. Conservatory – £3,127
8. Outdoor kitchen – £3,117
9. BBQ island/fire pit – £1,847
10. Hot tub – £1,616
Commenting on the findings, Verona Frankish, Chief Executive Officer of Yopa, which conducted the research, said: “Buyers are increasingly looking for practical and versatile outdoor features that extend the living space of a home, whether that’s a garden office, a landscaped entertaining area or simply simply attractive low maintenance outdoor space. What’s particularly interesting is that some of the most valuable improvements are not necessarily the most expensive.”
