One of the main reservations people have relating to a garden office is how it affects your property value, and if it’s a sound investment or not. It’s admittedly a grey area and it’s not as black and white as something like a building extension or a new kitchen.
To put your mind at ease, I delve into the world of garden offices below and show you how they affect property prices and the potential benefits they have as an investment.
Do Garden Offices Add to House Value?
Yes. I like to keep things short, so if you want a straight answer, there you go! Now, for a little more detail – your own garden office can add value to your home due to the following factors:
- It makes the property more desirable.
- It adds more floor space which is incredibly important today.
- It’s a great attraction for home workers.
- It adds a “wow” factor and can make your property stand out.
So will a garden room add value to my property? Certainly! The main boosting factor is the extra space. Space is a premium today and without paying for a costly extension, you have to buy a large house. Garden rooms give that extra space and thus make properties highly desirable.
They give that wow factor too. You can just picture someone walking down your garden, seeing your immaculate garden office, and thinking about what they could use it for, or how this could be their new garden sanctuary.
How Much Value Does a Garden Office Add?
Ok, I’ve teased you, I admit it. I know you want to know how much value a garden office can add to your home and this is the real kicker. On average, a garden office adds 8.4% value to your home, with the high and low ends being 15-5%.
Let’s put that into perspective. The average UK house price is £284,000 in 2023. That means that on an average-value house, a garden room can boost the value by £23856! That in itself is amazing, but consider how much you will spend on your garden office too.
Obviously, the price is affected by the quality of your garden room. But let’s say that your garden office cost £12,000. That means you have not only got the initial cost back but also made just under £12k profit too! Even if the garden office only added 5% value on, that’s still $14,200 which covers the cost.
Are Garden Offices a Good Investment?
Are garden offices a good investment? This is a separate question but the answer is also yes. They make a fantastic investment due to the following factors:
- They add value to your property of anywhere between 5-15%.
- They make your property more attractive and desirable when reselling.
- The initial cost is far outweighed by the potential property value gains.
- They provide a magnificent QOL improvement.
What’s not to love about this list? So, you’re telling me that a garden office can add value to your property (more than what you originally paid for the structure), make it infinitely more attractive for resale, and give you an immense quality of life boost while you use it? Sign me up!
Do Garden Offices Depreciate?
Ok, so we know the answer to the question, will a garden room add value to my property, but can this value change over time? Can a garden office depreciate like a car?
Luckily, you don’t have to worry about immediately losing around 50% of the value of your garden room as soon as it’s built, unlike a car! They generally don’t depreciate. The caveat is, is that you maintain it and keep it in great condition.
If you think that a 10-year-old dilapidated garden office that has fallen into disrepair is going to be worth as much as you originally paid for it, then think again! Yes, garden offices don’t depreciate, but you need to look after them!
Is Building a Garden Office Tax Deductible?
No. We would all love to get a garden office for free and claim it as part of our business tax, but sadly this isn’t possible. A garden office is a movable item, however, it counts as a structure.
Therefore, if you use it to work from home, it’s essentially your static place of work and the initial cost and installation cannot be deducted from your business profits. The only thing you can do is potentially claim for the furniture and equipment inside your garden office as these are business purchases.
Garden Offices Can Add Value to Your House and are a Great Investment
To summarize – garden offices add on average 8.4% to your property value and make a fantastic investment. Regardless of the financial incentives, garden offices can vastly improve your quality of life, give you extra room, and are an incredibly useful structure to have in your home – whether you intend to sell it or not.