The best number of bedrooms for London buy to let property · 08/07/2024
Last week, a landlord from London emailed me after reading my London Property Blog, to ask if he should extend his terraced house making an extra bedroom in the loft. He had a builder friend who owed him a favour, and thought a good way would be get an ‘inexpensive’ extension.
Having more useable space is generally thought to be consistent with better quality accommodation, and as letting agents in London, we see that homeowners and tenants are prepared to pay for it.
If you added a bedroom to a two-bed terraced to make a three-bed terraced, it will add 10% to the value of the property.
Turn a three-bed terraced into a four-bed terraced, and 9% will be added to the value. London letting agents should be able to highlight the ROI on bedrooms.
Looking at semi-detached properties in London, and turn a two into a three-bed and 12% will be added to the value, whilst making a three-bed semi into four-bed will add 9% in value.
However, before you rush off to the planning department there are some important considerations, whether you are a homeowner or landlord.
As leading London letting agents, our first question is what would be the cost of making that extra bedroom?
The average value of a terraced house in London is currently £219,100 whilst the average value of a semi detached house is £254,200, meaning to make money the cost of the extension would need to be less than £20,814 on the terraced property and £26,691 on the semi detached house.
Talking to a number of tradespeople in the City, most are booking up into the New Year. Maybe the builder was just thinking of a bit of pointing work on the chimney!
That got me thinking about how bedrooms affected rental prices and rent-ability in London as well, and as letting agents in London, this is our core business focus.
Interestingly below, you will see that whilst bedrooms do have an effect on the rent that can be achieved and the rent-ability of the property in London – the difference does not warrant the expense, hassle and trouble of extending.
* 42.9% of the one-bed properties on the market to rent in London have a tenant with an average rent of £707 per month
* 54.6% of the two-bed properties on the market to rent in London have a tenant an average rent of £1,1041 per month
* 62.5% of the three-bed properties on the market to rent in London have a tenant with an average rent of £1,199 per month
* 46% of the four-bed properties on the market to rent in London have a tenant with an average rent of £1,534 per month
If you want to increase the value of your London property, whether you’re a landlord or homeowner, there are things that cost a lot less than building extra bedrooms. Ask your letting agent in London for hints and tips, too. Here’s ours:
Spruce up the exterior, emulsion all the rooms, buy fresh carpets and curtains.
For London homeowners, a matter of a few hundred pounds will add thousands whilst for London landlords, these things can add an extra 10% to the rent that you can expect to achieve on your property investment.
If you’d like information, hints or tips on property management in London, letting agencies in London or London property agents, feel free to pop into see me at our London letting agency offices on Whiteladies Road in Chelsea or Badminton Road in Downend.
Alternatively, email me on atif@intire.co.uk with any questions.