I bumped into a landlord last week who was toying with the idea of extending a property he owns with a view to achieving a higher rent. Aside from the issues with planning consent and trying to get a decent builder this side of Christmas it did get me thinking about the value of an extra bedroom.

No doubt adding an extra bedroom will increase the value of your property but from a rental perspective does it make sense?

Looking at all the properties currently on the market for rent within 10 miles of where I am sat..

  • 53 are 1 bedroom properties of which 22% are let with average rent of £500 pcm
  • 105 are 2 bedroom properties of which 45% are let with an average rent of £595 pcm
  • 68 are 3 bedroom properties of which 38% are let with an average rent of £795 pcm
  • 33 are 4 bedroom properties of which 36% are let with an average rent of £1200 pcm

Two things that jump out at me from these stats, firstly extending from 1 bedroom to 2 bedrooms is going to increase the demand for your property but moving from 2 bedrooms to 3 bedrooms will have the reverse effect. The second thing I can see from this data is the extra rent you will achieve extending the property:

  • 1 bedroom to 2 bedrooms = extra £1140 rent per annum = extra 19% rent
  • 2 bedrooms to 3 bedrooms = extra £2400 rent per annum = extra 33% rent
  • 3 bedrooms to 4 bedrooms = extra £4860 rent per annum = extra 50% rent

There are of course other things to consider such as the increase in the value of your property and whether the facilities and floor area of the property can cope with an extra bedroom.

So before you rush out and apply for planning consent you may want to consider other options to make your property more in demand or command a higher rent such as:

  • Upgrade the bathroom or kitchen
  • Freshen up the paintwork with some light, plain and neutral colours
  • Replace carpets or window coverings with modern and inexpensive blinds

These things can add an extra 10% to the rent that you can expect to achieve on your property investment and increase the demand for your property without the need for the cost and trouble of extending.

In my forthcoming e-book I will be carrying out a more detailed analysis of this topic.

About Tom Morgan

Founder of Jungle Property the multi award-winning letting agent based in Glastonbury, Somerset. I am passionate about property and Glastonbury and about providing the very best advice to anyone who wants the best return on a buy-to-let property investment. For an open and brutally honest opinion on anything in the Glastonbury property market please contact me via tom.morgan@jungleproperty.co.uk