Renovation ROI inputs
Enter your property and renovation details to calculate the financial return on your renovation investment.
Renovation costs and typical ROI by project type — UK 2025
Not all renovation projects produce the same return. Understanding which works add most value — and which are most overpriced relative to their impact — is as important as knowing the total budget.
| Project | Typical cost (2-bed) | Typical value uplift | Average ROI | Notes |
|---|---|---|---|---|
| New kitchen | £5,000–£15,000 | £8,000–£25,000 | 120–180% | Highest ROI renovation. Buyers and tenants are most influenced by kitchen quality. Mid-range fitted kitchen at £8,000–£10,000 typically produces better ROI than a premium kitchen at £20,000+. |
| Bathroom renovation | £3,500–£9,000 | £5,000–£15,000 | 110–160% | Second-highest ROI. New bathroom suite, tiling, and shower enclosure. For HMO conversion, adding an en-suite can increase room rental premium by £50–£100/month. |
| EPC improvement (insulation, boiler) | £3,000–£10,000 | £4,000–£15,000 | 100–160% | Improving from EPC D to C adds measurable value, reduces void risk, and becomes essential under future minimum EPC requirements. Loft insulation (£300–£600) has the best ROI of any single measure. |
| Full internal redecoration | £3,000–£8,000 | £5,000–£12,000 | 100–130% | Neutral, fresh decoration increases saleability significantly. Undertaking works that require redecoration anyway (plumbing, electrical) makes painting part of the total project cost rather than additive. |
| New flooring (hard floors + carpet) | £2,500–£6,000 | £3,000–£9,000 | 100–120% | Hard flooring in kitchens and living areas, carpet in bedrooms. Quality of finish is visible immediately — scrimping on flooring is often counterproductive. |
| Rewire / consumer unit upgrade | £2,500–£6,000 | £0–£5,000 | 50–80% | Rarely adds direct value above cost but enables EICR compliance and removes negotiating chip for buyers. Essential for older stock — often flagged in surveys. |
| Loft conversion (bedroom) | £25,000–£50,000 | £30,000–£60,000 | 90–130% | Adds a bedroom — significant value addition in constrained markets. Dormer conversions at the higher cost end; simple Velux conversions at the lower. Requires planning in many areas. |
| Extension (kitchen-diner) | £35,000–£80,000 | £35,000–£70,000 | 75–100% | Large capital outlay for modest ROI relative to cost. Most valuable in areas where local market strongly favours larger family homes. Rarely worth it purely on ROI basis for investment properties. |
Frequently asked questions
How do I estimate Gross Development Value (GDV) before starting renovation?
GDV — the property's estimated value after renovation — should be based on comparable sales of similar properties in the same area in finished condition. The most reliable approach: search Rightmove and Zoopla for sold prices on equivalent properties (same number of bedrooms, similar size, same street or immediate vicinity) that have been recently sold in good condition. Average three or four recent comparables that most closely match the renovated specification. For a more formal estimate, a RICS-qualified surveyor can provide a "Red Book" valuation of the completed project — worth commissioning for larger projects or when bridging finance is involved.
The most common mistake is overestimating GDV based on aspirational asking prices rather than actual sold prices. In most markets, the gap between asking and achieved is 2–5% — always use sold prices, not current listings.
What contingency should I budget for a renovation?
15–20% of the total building works budget is standard for residential renovation. On a £25,000 renovation budget, this means £3,750–£5,000 in contingency. The contingency should be held as accessible cash — not the last £5,000 in your account — because renovation contingencies are regularly called upon. Common triggers: asbestos or lead paint discovered on strip-out (remediation cost: £500–£3,000), structural issues revealed when walls are opened, plumbing or electrical that proves more extensive than the survey indicated, and planning-required changes to the specification. Projects that complete within contingency are the exception, not the rule.
Is it better to renovate before selling or sell as-is?
The financial answer depends on the specific renovation and local market. A property in poor condition in a strong market often achieves a "discount" from buyers of 10–20% below its renovated value — more than the cost of basic renovation. Completing cosmetic works (decoration, flooring, kitchen refresh, bathroom update) typically returns more than their cost in the sale price achieved. Structural or complex works (extensions, loft conversions) are less reliable in terms of value return versus cost and time, and carry more execution risk.
Selling as-is makes sense when: the renovation would be too large or complex to manage; the local market is strong enough that the property will sell quickly without works; or the capital and time required for renovation are better deployed elsewhere.
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