Best Home Renovations for Return on Investment

When planning home improvements, it’s easy to get swept up in design trends or luxury upgrades, but if you're thinking long-term, return on investment (ROI) should be a top priority. Whether you're preparing to sell or simply want to enhance the usability and appeal of your home, certain renovations consistently deliver strong financial returns.

Not all upgrades are created equal. Some boost your property's market value significantly, while others may look great but offer little return. In this guide, we’ll explore which renovation projects offer the best ROI, which ones may fall short, and how you can make strategic improvements—especially in key areas like flooring—to maximise both style and resale value.

Top Renovations with the Best ROI

When it comes to increasing your home's market value, certain projects consistently offer better payback than others. Below are the most profitable renovations, ranked for their cost-effectiveness and impact on buyer appeal.

1. Improve Curb Appeal and Exterior Finishes

• ROI: Up to 100% or more
• Why it works: First impressions matter. Replacing your front door, repainting the facade, or adding modern house numbers and lighting can significantly improve perceived value.
• High-return updates: New garage doors, landscaping, and composite decking are also top performers.

2. Minor Kitchen Remodels

• ROI: 70%–80%
• Why it works: Buyers look for clean, functional kitchens. Simple updates like new cabinet doors, modern fixtures, or energy-efficient appliances can yield excellent results without the cost of a full renovation.
• Smart tip: Keep the layout intact to save on plumbing or electrical changes.

3. Flooring Upgrades

• ROI: Around 70%–90%
• Why it works: Floors set the tone for the entire home. Swapping worn-out carpet or tired laminate for quality wood, engineered, or LVT flooring can instantly modernise your space.
• Pro tip: Opt for neutral tones and durable materials that appeal to a wide audience.
• Explore options: Engineered wood and LVT/SPC flooring are two of the most cost-effective upgrades for resale value.

4. Interior Refreshes

• ROI: Often over 100%
• Why it works: A fresh coat of paint, modern light fixtures, and updated skirting or mouldings can transform a dated interior for very little cost.
• Budget-friendly ideas: Paint in warm neutrals, install LED lighting, and refresh floor trims for a sleek finish.

5. Bathroom Touch-Ups

• ROI: Around 60%–75%
• Why it works: A bathroom doesn’t have to be gutted to make an impact. Swapping old taps, replacing a tired vanity unit, or regrouting tiles can refresh the space affordably.
• Quick wins: Frame the mirror, upgrade lighting, and use stylish hardware for a modern look.

These renovations not only help your home stand out in a competitive market but also improve comfort and functionality for daily living. Next, we’ll explore which projects tend to offer lower returns—and how to avoid over-investing in the wrong areas.

Renovations That Often Yield Low ROI

While many home improvements can add value, some projects don't deliver the return homeowners expect. These renovations tend to be expensive, overly personalised, or too specific to recoup their costs when it’s time to sell.

1. Major Bathroom or Kitchen Overhauls

• ROI: Often 50%–60%
• Why ROI is lower: Full remodels are costly and can include moving plumbing, retiling, or upgrading all appliances—costs that buyers may not be willing to pay a premium for.
• Tip: Focus on surface-level updates unless the room is completely outdated or dysfunctional.

2. Home Extensions or Loft Conversions

• ROI: Typically 40%–60%
• Why ROI is lower: While these can improve space and lifestyle, the high upfront cost of structural work, permissions, and insulation often outweighs what you’ll recoup in resale—especially if done without a clear plan.
• Tip: Ensure any extension blends well with the property and adds usable, high-demand space like a bedroom or home office.

3. Luxury or Over-Customised Features

• Examples: Built-in aquariums, wine cellars, high-end entertainment systems, or statement wall features.
• Why ROI is low: These appeal to niche tastes and don’t add universal value. In some cases, they may even turn off potential buyers or increase perceived maintenance costs.
• Tip: If adding these features, do so for your enjoyment—not for resale value.

4. Swimming Pools (in the UK)

• ROI: Generally low unless in luxury homes
• Why ROI is low: Pools require maintenance, space, and heating—features that may deter more buyers than they attract, particularly in the UK climate.

Avoiding low-return upgrades doesn’t mean you shouldn’t make them—just be aware of their limitations if your primary goal is financial return rather than personal enjoyment.

Tips to Maximise ROI on Home Renovations

Getting the best return on your renovation investment isn't just about what you upgrade—it's also about how you plan, execute, and prioritise. Here are expert tips to help you maximise the value of every pound you spend.

1. Keep It Neutral and Timeless

• Choose classic finishes like neutral paint colours, natural wood tones, and simple tile patterns that appeal to a broad range of buyers.
• Avoid bold, trendy styles that may go out of fashion or limit buyer appeal in the future.

2. Match Your Neighbourhood Standards

• Over-improving your property compared to others on your street can lead to diminishing returns.
• Check local property values and renovation trends to align your investment with what buyers in your area expect.

3. Focus on High-Impact, Low-Cost Changes

• Fresh paint, new flooring, updated lighting, and improved insulation often provide great ROI without major structural changes.
• These upgrades also improve comfort and energy efficiency—benefits that today’s buyers value highly.

4. Plan With Professional Advice

• Get a property valuation before and after planned works to better estimate potential resale gains.
• Working with experienced installers—especially for flooring, bathrooms, or kitchens—ensures a high-quality finish that protects your investment.

5. Think About Daily Use, Not Just Resale

• While ROI is important, so is how the upgrade will enhance your daily life.
• Choose improvements that add value both financially and functionally—for example, upgrading to durable, easy-to-clean flooring that suits your household's lifestyle.

By balancing style, practicality, and budget, you can enjoy the benefits of your renovation now while also increasing your home’s long-term market value.

Flooring Upgrades as Smart ROI Moves

Among all interior renovations, upgrading your flooring is one of the most effective ways to boost home value and attract buyers. It’s a high-impact improvement that changes the entire feel of a space, improves functionality, and often recovers a significant portion of its cost at resale.

Why Flooring Offers Strong ROI

• Wide appeal: Clean, modern flooring is a top priority for buyers, especially in living rooms, kitchens, and hallways.
• Durability: Materials like engineered wood and LVT are long-lasting and resilient to wear and tear.
• Low maintenance: Smooth floors are easier to clean than carpet and reduce allergens in the home.
• Visual impact: Matching flooring across rooms creates a seamless, high-end look that elevates property perception.

Top Flooring Options to Consider

• Engineered wood flooring: Offers the elegance of solid wood with better stability and moisture resistance.
• Luxury Vinyl (LVT/SPC) flooring: Highly durable, water-resistant, and ideal for high-traffic or moisture-prone areas like kitchens and bathrooms.
• Laminate flooring: A cost-effective option that still delivers visual appeal and is easy to install.

These options provide a great balance between upfront cost and long-term value. For even better results, choose styles that complement your home’s décor and remain appealing to future buyers.

Real-Life Examples: Flooring Renovations That Paid Off

At FlooringFirst!, we’ve helped hundreds of London homeowners upgrade their flooring as part of smart home improvement strategies—and the results speak for themselves. Here are just a few examples of how thoughtful flooring choices have increased property value and enhanced everyday living:

Case Study 1: Engineered Oak in a West London Flat

• Project scope: Replaced worn-out carpet in a 2-bedroom flat with engineered oak flooring throughout.
• Outcome: Transformed the feel of the space, improved natural light reflection, and added perceived luxury.
• Estimated ROI: 80%–90% based on local estate agent valuation.

Case Study 2: LVT Flooring in a Rental Property in Camden

• Project scope: Installed durable LVT planks in the kitchen and hallway of a buy-to-let property.
• Outcome: Reduced maintenance between tenants, improved rental appeal, and increased monthly rental income.
• Estimated ROI: Full return within 12 months via higher rent and fewer flooring repairs.

Case Study 3: Laminate Flooring for a Budget Renovation in Enfield

• Project scope: Fitted mid-range laminate flooring in a semi-detached family home before selling.
• Outcome: Delivered a fresh, uniform look across ground floor rooms and helped secure a quick sale at above asking price.

No matter the size or style of the home, the right flooring upgrade can add significant value. And with professional advice, you can make confident choices that balance cost and return effectively.

Make Smart Renovation Choices That Pay Off

Not all renovations are equal when it comes to adding value to your home. By focusing on upgrades with strong return on investment—like new flooring, minor kitchen updates, and curb appeal enhancements—you can improve both the functionality and financial worth of your property. Avoid over-personalised or overly expensive projects that may not deliver value when it’s time to sell.

At FlooringFirst!, we specialise in helping homeowners make cost-effective, high-impact upgrades that truly transform a space. Whether you're upgrading to engineered wood, laminate, or LVT, our expert team is here to guide you from selection to installation.

Ready to boost your home's value with a flooring upgrade? Book a free site survey or contact us today to get personalised advice and a quote from our experienced London-based team.