The survey been undertaken by peer-to-peer lender Zopa who say that more than 82% of buy to let landlords and homeowners are keen on improving their properties rather than selling them.
Giles Andrews, Zopa's chief executive, said: “Homeowners and landlords can add significant value by improving their property rather than by moving.
“In the long-term, home improvements can be a cost-effective way to add value to a property especially with record low borrowing rates.”
Boost a buy to let’s value
The firm says that on average, improvements to a buy to let property will add 10% to its value and give an 80% return on investment.
Topping the list for the best home improvement is to add a conservatory which will add a huge 108% return on its investment.
This means that on average cost of £5,300, the profit to be made is £5,750.
However, the improvement that adds the most profit is for an extension which will, on average, add around £40,000 to the property value.
Buy to let popular improvements
The survey found that the most popular building project is to fit a new kitchen but this only has a return on investment of 49%.
Another popular improvement project on a buy to let property is to fit a new bathroom and this will return 48% of its investment.
So while improving the bathroom and kitchen are two of the most popular improvement projects they are also the worst for the return on investment.
Other good returns will be seen by improving the garden, 88%, and improving the exterior, 75%.
Adding an extension will see a return of 71%, while adding a new roof will see a 63% return.
Mandatory Client Money Protection (CMP) scheme for agents rejected
Meanwhile, SAFEagent, a consumer brand to donate a 'safe' lettings agent, has expressed its disappointment and surprise that a plan for a mandatory client money protection scheme for letting agents has been rejected.
The housing minister Brandon Lewis told the organisation that the government had no plans to make any amendment to the Consumer Rights Bill which would make a money protection scheme mandatory for lettings and management agents.
The organisation's chairman, John Midgley, said: “We are disappointed that a key consumer protection measure looks like being rejected by the government. We will continue our campaign which has seen 3,000 letting agents already signing up.”
However, an amendment to the bill has been made in the House of Lords by the Peer Baroness Hayter and SAFEagent is giving her its full support.
