Whether improving your family home or buying and selling a house, garage conversions can add a great deal of value to a house.
There is more competition for parking than ever, and in some cities, it is near impossible to find free parking. Those of us that drive will be unpleasantly familiar with winding down cramped streets with vehicles parked on both sides of the road.
Other than the secure parking space convenience that a garage affords, they also offer a number of other benefits. Namely, they can add value to your home. Below we will find out just how much value a garage build will add to a house.
Will a garage significantly increase home value?
A garage will absolutely add value to your home. Most sources are in agreement that converting a garage will add around 5% value to your home. However less conservative estimations speculate that garages can add around 20% in value to your home. This is nearly a quarter of the value of your house.
According to government statistics, the average UK house price is more than £270,000. Using this house value as a base a converted garage yields a potential increase of £13,500 (5%). The higher end of the estimate would add £54,000 of value to your property.
As you can see a garage can add a tremendous amount of value to your property, but it adds more than just cash value. As competition for parking spaces increases many potential buyers will flat out refuse to buy a property without a garage. The same goes for renters. Not having a garage may mean your home will sit on the property market longer than it ordinarily would. When renting out a property this can amount to months of lost revenue.
Converting a garage is an easy way to add overall value to a home. However, are there any other benefits that can provide even more value?
What else can garages be used for?
What more value can a garage add? Depending on the size, and interior of a garage, it has the potential to bring in extra revenue. The garage itself may even pay for its own conversion. For example, homeowners can achieve passive income by renting out their garage. This is especially profitable if you live in a congested area with surrounding businesses or stadiums. Some homeowners make a handsome sum of money renting their garage to football fans on matchdays.
Similarly, homeowners can convert garages into living spaces, such as studio rooms to rent out. Instead of paying out for hotel rooms, some may prefer to stay at a well converted studio flat/garage. Platforms such as Airbnb have made the option of hosting property far more accessible. A garage can also be rented out as storage space without having to convert anything.
The useable space can also be used as a base for business operations. Converting a garage provides plenty of room for certain businesses. For example, instead of renting an office people can save money by working from their garage. With enough room, a garage can provide excellent premises for a gym. Perhaps a garage will be too small for a commercial gym, but they have potential as premises for private personal trainers.
They can also provide space for other business ventures including dog grooming businesses, fashion and craft workshops, and barbers. Perhaps garages best add value to a property by providing opportunities for entrepreneurship.
How much does a garage conversion cost?
Although prices and estimates vary it is estimated that converting a garage can cost between £469-£1,200 per square metre. Other home improvements such as home extensions cost more on average meaning garages may provide better value for money on your property.
The total cost of building a garage is between £7000 and £20,000, with the average coming in at around £13,500. This is less than other significant buildings and home extensions. For example, a single story extension can cost between £30,000 and £48,00 in the UK. Other home improvements such as a loft conversion, can cost between £20,00 and £49,000 for the most basic conversion.
Therefore, although it is not the biggest investment you can make, this may be the most cost-efficient way to add extra room, as well as off-road parking, to your property.
Is it worth adding a garage to your house?
With prices starting at £7000 some may be wondering if the cost of building a garage is worth it, or if their money can be better spent elsewhere. Ultimately this is a personal decision, but before undertaking a project like this, it is always best to ask an expert for advice. Of course, research should be conducted into the risks and benefits of this kind of conversion.
However, in general, when a garage is attached to a property, its value will instantly increase. But, what value does a garage provide? For starters, it will add a value of 5-20% to your building, meaning even if selling straight away, it improves profits. Not to mention if you keep hold of the house, the investment will be tiny in comparison to the appreciation of property prices, in the near future.
Furthermore, an appropriate conversion can add an extra bedroom to a property. Turning a three-bedroom house, into a four-bedroom house for example. They also make properties more appealing to buyers and renters. Meaning your building will not stagnate on the property market, when you choose to rent or sell.
It can also add value by giving space for entrepreneurs to create businesses. Thus, giving them free space to create profit or passive income. It will further add value by decreasing living costs. If you use this room to park your car, car insurance premiums will likely drop. When you park a car in a garage there is added protection from theft, in comparison to parking on the street, or a driveway.
Therefore there are multiple ways in which a garage can add value to your home. But, what considerations need to be upheld?
What rules and considerations do garages need to adhere to?
Even though you own the property, and extra land needed for a garage, you may still need planning permission. It is always best to double-check and get advice from a local authority before planning any builds. However, as a rule of thumb planning permission is usually required if:
- The garage extends beyond the front of your home
- The garage covers more than half the space of your garden
- The roof is measured at more than 4 metres
- It is within one metre of your house wall, even if it is a detached garage
Further building regulations should also be considered. For example, unlike concrete garages wooden garages are treated as temporary structures, meaning they do not need planning permission.
If you later decide to turn your garage into a bedroom there are further regulations to bear in mind such as ventilation. You will need to add space for a window of at least 450x450mm. There also needs to be a space of 110mm between the floor and the window.
It is also important to ensure the roof, floor, and walls are properly insulated, in order to meet the heating and energy-saving standards. Moreover, it should be properly soundproofed to avoid problems with neighbours.
When a garage is connected to your home, it is recommended to use a proper fire-rated door. Recommended doors include:
- Solid Wood Door not less than 1-3/8 inches thick
- Solid or Honeycome-core Steel Door not less than 1-3/8 inches thick
- 20 Minute Fire Rated Door
There you have it. So, While it is a personal choice, research has shown that a garage can greatly add value to a home.
