A home is the largest investment most people will ever make. So, when it comes to renovations, the big question is: will it pay off?
With financial issues like house prices and rising energy bills, 2025 is a very interesting year to look at the return on investment (ROI) of home renovations. As always, there are some projects that will add significant value to your home, while others may cost too much to be worthwhile.
Here are the projects that we believe will make financial sense this year.
Why ROI Matters in Home Renovations
Every homeowner wants their house to be comfortable and personal to them but when you’re spending tens of thousands on a large project, you also want the reassurance that you’re not throwing money away.
When looking at ROI, it’s important to consider the savings on running costs as well as the increase in value of your home. One factor that often gets overlooked is the improvements to your quality of life, which is harder to measure but crucial to consider.
Renovations With the Best ROI in 2025
1. Energy-Efficient Upgrades
With the fluctuating, unpredictable energy prices in 2025, eco-friendly renovations are becoming more and more valuable. Projects like improved insulation, heat pumps, or solar panels are perfect for ensuring significant future savings on energy bills.
Not only do these cut monthly bills, but they’re increasingly sought-after by buyers who are looking for an energy-efficient/greener home.
2. Kitchen Renovations
Despite all the housing uncertainty in 2025, kitchens remain at the forefront of most buyers’ wish lists. A modern, functional kitchen can transform how a house feels and functions, often leading to it being a deciding factor when people are choosing between properties.
But beware: overspending is easy. A £40,000+ designer kitchen won’t necessarily give you a larger return on investment than a well-done £15,000 upgrade. At Alexander Builders Suffolk, we can use our expert knowledge to give you our opinion on what kitchen will give you the largest increase in value on your property.
3. Loft Conversions
With the increasing house prices, space is becoming more and more premium. A loft conversion that creates an additional bedroom, office, etc, can significantly boost your property value. This increase can often be upwards of 15-20%.
It’s also much less disruptive than a typical extension, making it a great option for families who need more room without moving.
4. Bathroom Upgrades
Bathrooms can make a huge difference to the look and feel of your home, while transforming the functionality as well. A well-designed bathroom often reassures buyers that a property has been cared for, which makes your home much more desirable.
However, it’s important to get an expert opinion on what is best for your home, as small touches (e.g. new tiles, good lighting, modern fixtures) often go further than a complete rebuild.
5. Open-Plan Living Spaces
Knocking through walls to create open-plan kitchen-diners or family spaces is still in demand. Buyers love flexibility, natural light, and flow between rooms.
That said, it’s worth making sure you don’t remove too much. A house that loses all its private spaces can be less appealing to certain buyers.
Final Thoughts
Renovations can be an excellent investment, but not all projects are created equal. In 2025, the sweet spot is practicality and efficiency: spaces that make everyday life easier and homes that are cheaper to run.
At Alexander Builders Suffolk, we work with homeowners across Suffolk to plan, design, and deliver renovations that not only improve day-to-day living but also make financial sense in the long run.
Thinking about upgrading your home? Get in touch today for straightforward advice and a free consultation.
Thinking of starting a project?
Get in touch today to speak with one of our specialists: