This article explores why some renovations do not deliver the return homeowners expect and ideas about some smarter home improvement projects.
05/06/2026By Sunil Chander · Co-Founder
Many homeowners take on renovation projects believing that every improvement will increase the value of their property. The idea that if you spend money improving a home, the home should be worth more seems quite logical to them. However, the property market does not always work that way. Buyers value certain features and ignore others. Some upgrades can even make a property less attractive to potential buyers.
A key factor in the housing market is return on investment. Property owners often expect the money spent on a project to be reflected in the future selling price of their home. In reality, most homeowners recover only part of their renovation costs when selling. The amount varies depending on the project and the property market at the time. Some improvements add space or functionality and may increase value. Others simply reflect personal taste and rarely influence the selling price.
Understanding which improvements add value and which do not can help homeowners make better financial decisions. This is especially important when using improvement loans for a home renovation. Knowing what buyers expect can also help when deciding how to invest in a property.
Why Some Home Improvements Do Not Increase Property Value
It is important to understand why some renovations do not add value. The first reason is buyer preference. Home improvements that reflect personal style may not appeal to the average buyer. If a renovation is too unique, buyers may see it as something they must remove or change. The second reason is overspending. This happens when homeowners spend more money on improvements than the property value can support. A luxury renovation in a modest neighbourhood rarely increases the selling price enough to recover the investment.
Another factor is practicality. Buyers often prioritise space, functionality and energy efficiency over decorative upgrades. Improvements that increase living space, such as extensions or loft conversions, tend to add the most value because they make the property more useful.
Renovations that do not increase living space or improve function are more likely to be considered cosmetic changes. These changes may make a home look nicer, but do not necessarily increase its market value.
Over-Personalised Kitchen Renovations
The kitchen is considered one of the most important spaces in a home. However, spending a large amount of money on a customised kitchen does not guarantee an increase in property value. Some homeowners choose bold designs, unique colour schemes or specialised appliances. While these features may reflect personal taste, they do not appeal to every buyer. If the kitchen design is too specific, buyers may see it as something they must replace.
Property experts warn that expensive kitchen renovations can fail to deliver a strong return. A homeowner might spend tens of thousands of pounds on custom cabinets and luxury appliances, but the property may not increase in value by the same amount. Instead of investing heavily in highly personalised kitchen designs, homeowners who plan to sell often benefit from choosing simple and neutral layouts that appeal to a wider market.
Expensive Wallpaper and Bold Paint Colours
Decorating a home with bold colours or patterned wallpaper can create a dramatic visual effect. However, these design choices can reduce the appeal of a property to potential buyers. Many buyers prefer neutral colours because this allows them to imagine their own furniture and style in the space. Strong colours or distinctive wallpaper patterns can make it difficult for buyers to visualise the home as their own.
Estate agents sometimes recommend neutral tones, such as white, beige or light grey, when preparing a property for sale. Decorative styles that are too trendy may also date quickly and require updating before a property can be marketed effectively.
Swimming Pools
A swimming pool is often associated with luxury living. In some countries, pools can increase property value significantly. In the UK, however, they rarely have the same effect.
The main reason is the climate. The UK has a relatively cool and wet climate compared with many other parts of the world. Because of this, outdoor pools are only usable for a limited period each year. Pools also involve high installation and maintenance costs. Heating, cleaning and ongoing repairs can make them expensive to maintain. Many buyers see pools as an extra responsibility rather than a desirable feature.
For this reason, a swimming pool may not increase the selling price of a property. In some cases, it may even reduce the number of interested buyers.
Over-the-Top Garden Landscaping
Gardens can improve the overall appearance of a property. A tidy and well-maintained outdoor space can create a strong first impression for potential buyers. However, elaborate landscaping projects can sometimes have the opposite effect. High-maintenance gardens with complex layouts may discourage buyers who want simple outdoor spaces.
Large water features, extensive planting schemes and unusual garden designs may require ongoing work. Buyers may worry about the time and cost required to maintain these features. A practical garden that is easy to maintain usually appeals to a wider range of buyers than an elaborate landscape design.
Converting Bedrooms into Specialised Rooms
One of the most common mistakes homeowners make is converting bedrooms into specialised spaces. Examples include turning a bedroom into a home gym, a walk-in wardrobe or a hobby room. While these spaces may suit the current homeowner's lifestyle, they can reduce the perceived value of the property. Bedrooms are one of the most important factors when buyers assess a home. A property with more bedrooms usually has a higher value than one with fewer bedrooms.
When a bedroom is converted into a specialised space, the property may appear to have fewer bedrooms. This can reduce the number of buyers who consider the home suitable for their needs.
Built-In Furniture and Fixed Units
Built-in furniture can be attractive and functional. Examples include fitted shelving, custom wardrobes or permanent entertainment units. However, these installations can limit the flexibility of a room. Buyers often prefer spaces that they can adapt to their own preferences.
Built-in features can also be expensive to remove or replace. As a result, some buyers view them as obstacles rather than improvements. A flexible room layout usually appeals to more buyers than one designed around permanent fixtures.
Luxury Flooring Materials
Flooring upgrades can dramatically change the appearance of a home. Materials such as marble, hardwood or designer tiles are often associated with luxury interiors. Despite their appearance, these materials do not always increase property value. Flooring preferences vary widely among buyers. Some people prefer carpet, while others prefer wood or laminate.
If the chosen material does not match the buyer's preference, they may plan to replace it after purchasing the property. This reduces the value they place on the renovation.
Luxury flooring should therefore be considered a lifestyle choice rather than a guaranteed investment.
High-Cost Bathroom Remodels
Bathrooms are important rooms in any home. However, completely remodelling a bathroom with expensive fixtures may not increase property value as much as expected. Large renovation budgets can include items such as freestanding baths, luxury tiles and designer fittings. These upgrades can cost tens of thousands of pounds.
In many cases, buyers simply expect the bathroom to be clean, modern and functional. As long as the bathroom is in good condition, a high-end renovation rarely adds a proportionate increase in value.
Homeowners considering improvement loans for home upgrades should carefully evaluate whether such projects will deliver a meaningful return.
Smart Technology That Does Not Improve Efficiency
Smart home technology has become increasingly popular in recent years. Devices such as smart lighting systems, speakers and automated gadgets can make homes feel modern. However, some buyers view these technologies as unnecessary or complicated.
Technology that improves energy efficiency may add value. Examples include solar panels or energy-efficient heating systems. Devices that provide only convenience may not influence property value.
Insurance and Borrowing
Before starting any major home improvement project, homeowners should consider home renovation insurance. Standard home insurance policies may not cover damage that may occur during major building work. Renovation insurance can protect the structure and liability during construction.
Homeowners who plan to finance improvements with improvement loans should also carefully evaluate the expected return. Borrowing money for a project that does not increase property value can lead to financial difficulties if the property is sold soon after the renovation.
Consulting property experts or estate agents can help homeowners decide whether a project is likely to increase value.
Property Value
Property value depends on several factors, including location, size, condition and market demand. Renovations that increase usable living space often have the greatest impact on price. By contrast, decorative improvements rarely change property value significantly. When planning a renovation, it is helpful to consider whether the project improves functionality or simply changes appearance.
Conclusion
Home improvements can make a property more comfortable and enjoyable to live in. However, not every renovation increases the financial value of a home. Projects that reflect personal taste or focus on luxury features can fail to deliver a strong return on investment. Examples include swimming pools, elaborate garden landscaping, highly customised kitchens and expensive decorative upgrades. Improvements that increase space, practicality or energy efficiency tend to add the most value. Buyers often prioritise additional bedrooms, better layouts and improved energy performance over cosmetic upgrades.
Before beginning any renovation project, homeowners should consider whether the improvement aligns with buyer expectations and the local property market. Consulting property experts can help homeowners make informed decisions.
FAQs
Q. Do all home improvements increase property value?
A. Many renovations improve comfort or appearance but do not increase property value. Improvements that add space or improve energy efficiency usually provide the best return.
Q. Does redecorating increase the value of a house?
A. Redecorating can make a property more attractive to buyers. However, it rarely increases the official market value unless the previous condition was poor.
Q. Should I take improvement loans for home renovations?
A. Improvement loans can help fund renovations, but homeowners should ensure the project will deliver financial benefits or long-term enjoyment before borrowing money.
Q. Will adding luxury features increase my home's value?
A. Luxury features may improve the appearance of a property but often fail to increase value unless they match buyer expectations and the surrounding property market.
About the author
Sunil Chander
Co-Founder
Sunil oversees operations and compliance at Pauzible, drawing on his extensive experience as the founder and CEO of Dawnbud Limited, a financial services consulting firm. His prior career included senior roles in investment banking at Smith New Court and NatWest. He holds an MBA from LBS, M Litt from Oxford and a PhD from Cambridge.
home improvementsproperty valuerenovationsreturn on investmenthomeowners
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