Which Improvements Add Value?

When it comes to property development, research is all important. Before you begin any work on the house you've bought, and ideally before you've even bought it, do lots of background work to find out the following. What's selling well in the area? Three bedroomed houses? Homes with garages? Houses with loft conversions? What are they selling for - and what's the difference in value between the most beautifully developed and the house you're interested in? What market will you be aiming at and what are these people's needs? What do local estate agents advise?

Once you've got all the answers and feel satisfied that you are developing your property sensibly, talk to the planning department to check your plans would be approved, set a realistic budget, including extra money for any unforeseen (but inevitable) jobs and a schedule. Then, do your utmost to stick to these rules.

Choose The Right Renovation

'Don't assume big is best,' says Hugo. 'The new rules are all about getting the balance right. Gone are the days of squeezing in lots of bedrooms regardless of how small the living areas are or creating a huge rear extension that takes up most of the garden. The trick now is to design a home that people will want to live in. That means good sized bedrooms, comfortable living areas (open plan is very popular now) and most importantly a good flow throughout the house. And don't forget that you may be able to achieve a great deal without actually extending - simply reconfiguring existing rooms can dramatically change a house.'

Consider The Cost To Value Ratio

'Some renovations, such as adding a basement, will prove far more difficult to generate a financial return from as the cost of the work is much higher than the potential value added to the property. So it's important to consider the cost to value ratio when you're planning to add space. As a general rule the cheapest way to add space is to convert a loft, followed by a rear extension and lastly going down into the basement.'

Get A Good Team

'Making sure your home is finished to a high standard is essential. That doesn't necessarily mean spending a fortune on fixtures and fittings, but it does mean that you should carefully plan your project and critically, get good builders who can realise your plans. Try to choose tradesmen on recommendation if possible or alternatively make sure you check out their references.'

Keep Control Of Costs

'You can lose all of your potential profit just by losing control of costs. To avoid unexpected budget increases make sure you plan your project adequately and get a good set of drawings from the outset. This will allow your builders to give you an accurate quote in the first instance and will also mean that everything gets done in the correct order and on time (which also means on budget). Don't be tempted to make changes throughout the project, ensure all of your creative thinking is done upfront rather than during the build phase as this will make your costs escalate.'