Which outbuildings add the most value to your home?

When people want to increase the value of their home, they usually turn to extensions, loft conversions and kitchen renovations. However, outbuildings can also make a significant difference (and they usually get forgotten about).

From garages and workshops to garden rooms and annexes, the right outbuilding can improve the functionality of your home while also increasing its value.

In this guide, I’ve taken a look at the types of outbuildings that can add the most value, as well as what you should look for and how to maximise the return on your investment.

 

How much value can an outbuilding add?

This depends on a few different things (sorry, I hate when articles don’t answer the question properly!). It depends on the size, quality, location and use of the outbuilding. For example, a well-designed, insulated garden room that can be used throughout the year is likely to add more value than a basic storage shed.

Property experts generally agree that high-quality outbuildings can add between 5% and 15% to a home’s value when they create genuinely useful additional space. For a property worth £300,000, that could equate to an increase of between £15,000 and £45,000.

If you want to add an outbuilding to increase the value of your home, remember that potential buyers will be looking for practical uses for it. An outbuilding that allows for extra storage, more working space or leisure facilities is more appealing than one with a very niche purpose.

 

Is it worth installing a garden room/pod?

Garden rooms have become SO popular in recent years. They’re an extension of your home and allow you to create an extra room that you can’t fit in your house, be it a gym, an office, a craft room, a bar and more. They are usually designed with insulation and electricity so they’re completely functional and not just a basic shed.

 

To give you an idea of price, a garden office shed could add as much as £12k to the value of your home (or around 5% to 15% of the property’s value), so it could be a worthy investment, even if you don’t use it as a home office.

To maximise value, the garden room should be well-insulated and finished to a high standard with lighting and electrical outlets.

 

Do garages add value to a house?

Garages have recently become useful spaces, instead of somewhere to house a car. In fact, most modern cars are way too big to fit into a single garage anyway, so they’ve become something else entirely. It can be used for:

• General storage for all your bits and bobs
• DIY projects
• A home gym
• A utility room
• A workshop space.

A garage can definitely add value to a house, as most people really want the additional space (plus a house with a garage usually has a decent-sized driveway, which is desirable to most people). It’s thought to add around 5% to 10% of the property’s value.

Our old garage was a place to house all of Jay’s tools, but it also functioned as my utility room. We put the tumble dryer and washing machine in there as there wasn’t enough space in the kitchen. Our current garage now stores all the things for our DIY projects, as well as our boiler and hot water tank, freeing up space in the house.

 

Can a shed add value to your house?

 

The classic shed is an essential for any house, somewhere to store the lawnmower and other gardening essentials that just won’t go in the house. But I’m sorry to say, it probably won’t add value to your house.

It might still make the property more desirable to potential buyers, particularly if it’s in good condition (no rot/damp/falling apart roof). Larger sheds that function as workshops or hobby spaces may add more appeal, especially if they have electricity and good security features.

 

Workshops and hobby buildings

If a buyer has practical hobbies or a home-based business, then an outbuilding that helps them will make your home far more desirable. However, if it’s a very small building with no electricity supply, it’s the same as a standard shed and won’t add much value.

 

Annexes and granny flats

Out of all the different types of outbuildings, self-contained annexes are likely to add the most value to your home.

An annexe can provide:

• Accommodation for elderly relatives
• Independent living space for adult children
• Guest accommodation
• Potential rental opportunities
• Multi-generational living arrangements.

HOWEVER, while they can add the most value, they are also the most expensive to build/add on if you haven’t already got one. It would be a significant investment, and you’d need to decide whether the cost is worth the outcome.

 

Farm buildings and stables

 

Farm buildings and stables will likely add value to your property, particularly as they mean you probably have a lot of land with your house, but they also offer other income opportunities too.

If you already have a barn or stable, then renting them out to farmers or using them as a livery yard can bring in some extra money.

If you don’t have a barn already, it’s hard to say how much value it will add and whether the cost of building one (around £10k) is worth it.

If you have stables that you don’t use, you could consider converting them into an annexe or granny flat for extra income.

 

Do you need planning permission for an outbuilding?

Most outbuildings don’t actually need planning permission, but there are some exceptions (there always are). You will probably need planning permission if:

• The property is listed
• The property is in a conservation area
• The outbuilding will be bigger than the permitted development size limits
• The building is intended as separate living accommodation
• The structure is particularly tall or positioned close to boundaries.

As planning rules vary by location and circumstances, it’s always worth checking before building starts.

 

Are outbuildings ‘better’ than an extension?

You might be wondering if one is ‘better’ than the other, and the answer depends on what you’re using the space for. Extensions are great for increasing the footprint of your home for additional living space, or more bedrooms. However, they can be costly and building an extension can be extremely disruptive.

An outbuilding, however, is usually faster to build, far less disruptive and cheaper, making it a far more suitable option, especially if you want to have a gym, an office or a hobby room.