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Upsizing costs 44% per room – the cheapest upsizing locations revealed

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The latest research by leading estate agent comparison site, GetAgent.co.uk, has revealed that on average, every additional room adds 44% to a property’s value.

GetAgent.co.uk pulls data from all of the major portals which they then cross-reference with the Land Registry using proprietary algorithms to create a comprehensive record of what is selling, where, for how much and how long it’s taking. 

GetAgent’s latest research looks at the number of bedrooms in a property and how much they are currently selling for, as well as the price increase between each threshold and where is home to the most cost-effective up-sizing property markets in the UK.  

The data shows that the average jump in value between each property size is a 44% increase for every additional room.  

The current average cost of a one-bed is £193,226 climbing 26% to an average of £243,762 for a two-bed.  

The popularity of three-bed homes for growing families and a lack of stock to accommodate this demand means that the price jump between a two and three-bed property is one of the largest at 47%, second only to the difference between a four and five-bed home.  

Upsizing between a three and four-bed requires an additional 42% in property prices with the biggest jump predictably that between a four-bed property and a home with five or more bedrooms – a 62% increase.  

With a growing population and a lack of housing stock being delivered, it’s no surprise that the cost of an additional room in London is higher, with an additional 52% required for every room upsized.  

Again, the jump between two and three-bed homes is the second largest at 59%, with an increase of 63% between four-bed homes and properties with five beds or more.

The most and least affordable upsizing locations

However, upsizing doesn’t have to be a tough financial hurdle. There are plenty of pockets of the UK where improving your property potential is pretty cost-effective.

The smallest average increase between the price of a one and two-bed can be found in Blackpool (0.2%), while the most sought-after two to three-bed jump is at its cheapest in Middlesbrough, with a 13% increase.  

While the cost of buying in the borough of Islington is high, it’s home to the smallest increase in property price between a three and four-bed home at just 3%, with Buteshire is the best place to go big and move from a four-bed, to a five-bed or larger, with an increase of 5%.

Founder and CEO of GetAgent.co.uk, Colby Short, commented:

“More space is very sought-after resource particularly in the UK’s more built-up areas and as we reach life’s traditional mile markets, such as marriage and kids, many of us will look to upsize in order to accommodate our growing family.

Unfortunately, this comes at a cost with the most expensive jump being the move from a two to a three-bed home. As a result, many are now choosing to expand their current property potential with a renovation or extension, but this might not necessarily add the value expected.  

Yes, an additional room is a plus and will command a higher price, but the reason we see such notable jumps in value between property thresholds is the overall size of a home, the extra bathrooms, the larger garden, the additional space for hosting guests. These are the factors that make a bigger ‘family home’ and command a higher price.”

Great Britain – Cost of Upsizing  
Category Average Asking Price
1 bed £193,226
2 bed £243,762
3 bed £357,858
4 bed £508,031
5 bed £822,770
Average £425,129
   
   
London – Cost of Upsizing  
Category Average Asking Price
1 bed £396,267
2 bed £613,550
3 bed £977,475
4 bed £1,264,476
5 bed £2,058,532
Average £1,062,060
   
Asking price % difference – by number of beds  
Lowest difference – 1 to 2 bed  
Location Asking Price Average % Difference – 1 to 2 bed
Blackpool 0.2%
Caerphilly 0.2%
Fylde 1%
Knowsley 1%
Wigan 1%
West Lindsey 1%
Rugby 1%
Bradford 2%
Redcar & Cleveland 2%
Monmouthshire 2%
   
Highest difference – 1 to 2 bed
Location Asking Price Average % Difference – 1 to 2 bed
City of London 109%
Lanarkshire 108%
Westminster 104%
Rushcliffe 102%
Shetland 88%
Falkirk 87%
Kensington and Chelsea 79%
Camden 78%
Ayrshire 77%
Tendring 72%
   
Lowest difference – 2 to 3 bed  
Location Asking Price Average % Difference – 2 to 3 bed
Middlesbrough 13%
North East Lincolnshire 17%
Caerphilly 19%
Western Isles 20%
Newham 23%
Castle Point 24%
South Gloucestershire 25%
Blackpool 26%
Wolverhampton 26%
Rhondda Cynon Taf 26%
   
Highest difference – 2 to 3 bed
Location Asking Price Average % Difference – 2 to 3 bed
City of London 139%
Midlothian 88%
Shetland 87%
Birmingham 87%
Hammersmith and Fulham 86%
Westminster 85%
Burnley 82%
Ribble Valley 81%
East Ayrshire 80%
Kensington and Chelsea 78%
   
Lowest difference – 3 to 4 bed
Location Asking Price Average % Difference – 3 to 4 bed
Islington 3%
Tower Hamlets 9%
Midlothian 13%
Southwark 17%
Hammersmith and Fulham 17%
Comhairle nan Eilean Siar 18%
Barking and Dagenham 23%
Newham 23%
Enfield 23%
Redbridge 24%
   
Highest difference – 3 to 4 bed
Location Asking Price Average % Difference – 3 to 4 bed
Buteshire 127%
Middlesbrough 126%
East Ayrshire 108%
Pendle 106%
Hartlepool 103%
Blaenau Gwent 100%
County Durham 89%
Burnley 89%
St. Helens 88%
Bolsover 88%
   
Lowest difference – 4 to 5 bed  
Location Asking Price Average % Difference – 4 to 5 bed
Buteshire 5%
City of London 7%
Manchester 7%
Bexley 17%
Preston 18%
Merthyr Tydfil 19%
Luton 21%
Barking and Dagenham 22%
Copeland 23%
Middlesbrough 24%
   
Highest difference – 4 to 5 bed
Location Asking Price Average % Difference – 4 to 5 bed
Runnymede 249%
Windsor and Maidenhead 185%
Birmingham 147%
Cotswold 146%
Chichester 139%
Elmbridge 134%
Westminster 122%
Woking 121%
Hertsmere 114%
Salford 114%

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Cost of maintaining a buy-to-let hits £12k a year in parts of the UK

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Leading property management platform, Howsy, has looked at the cost of maintaining a buy-to-let property each year and how this varies across the UK.  

Buy-to-let can be a tricky business if you don’t tackle it properly and there are a whole host of costs that can trip up the amateur investor. From the more obvious additional three percent stamp duty tax, to various other tax implications, void periods, mortgage costs, agency fees, the cost of finding a tenant, and more, Howsy’s previous research shows the average buy-to-let brings an annual return of just £2,000.

With the Government’s continued attack on UK landlords, making the most out of your investment financially can be tough and even when you consider all financial commitments for a property, many can still be caught unaware by out of the blue maintenance and repair costs. 

Buy-to-let landlords should squirrel away savings in anticipation of these events and an industry rule of thumb is an annual budget equivalent to 1% of your property’s value. 

So what does that equate to?  

Across the UK landlords should be tucking away an annual budget of £2,344 to cover repairs and maintenance, with this rising to £4,746 in London, with the North East home to the lowest repair costs at just £1,328. 

Of course, markets with higher rent returns may seem promising from an investment standpoint but the higher the reward, the higher the cost when things do go wrong. In Kensington and Chelsea, this annual 1% saving climbs to an eye-watering £12,292, hitting nearly £9,000 in both the Cities of London and Westminster.  

Outside of London, South Bucks and Elmbridge are home to the most expensive buy-to-let maintenance costs at £6,091 and £6,019 respectively.

Head to the likes of Burnley or Blaenau Gwent however, and this yearly maintenance budget drops to less than £1,000 a year.

Founder and CEO of Howsy, Calum Brannan, commented: 

“The buy-to-let sector can be a minefield for the amateur investor and now more than ever, it’s imperative that you do everything you can to maximise the return on your investment.

While technology now allows a greater level of control and service when managing your investment at a lower cost via online platforms, it isn’t just about the financial side of things. Providing a fit for purpose property is not only a legal requirement but essential to ensure a happy tenancy and a reduction in void periods.

Of course, things can go wrong and having the budget available to fix them is a must. In the worst-case scenarios, a cash pot equal to one percent of your property’s value might not be sufficient, but it should cover you for most eventualities and is a good benchmark to start on.

As with all buy-to-let investments, good preparation, organisation, and education are key, and whether you go it alone or have a great management agent if you stay on top of things, a bricks and mortar investment is still one of the best you can make.” 

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