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The work-from-home setup that could lift your house value by £40,000

Working from home remains a hot topic - and a divisive one - but it can really boost some properties’ value

(Getty/iStock)

There are certain features that have long been in favour for helping to add value to a house price, including a driveway and south-facing garden.

Then there are more recent trends that have increasingly caught the attention of estate agents and buyers - including one that gained momentum following the first pandemic lockdown in 2020.

That is dedicated office space, which can be “highly sought-after” and could even add as much as 15 per cent to a home value in some cases, according to a new estimate shared with The Independent.

While lockdown and full-time working from home may seem a distant memory, it changed the typical working week model for many employers, with a mixture of remote hours and attendance at main company headquarters not uncommon today.

Additionally, a report last year from the British Business Bank found almost two-thirds (61 per cent) of one-person businesses operate from residential premises or are mobile. For many people, a professional home workspace is highly important.

Figures from property website Zoopla show around 82,000 residential properties listed feature an office in the house, during January 2026.

It is not only listing numbers with this feature that have risen: fresh research from estate agency Benham & Reeves suggests house prices can get a meaningful lift from office space. So how much could one be worth?

How much can an office add to house prices?

Marc von Grundherr, director of Benham and Reeves, says in a number of scenarios, a dedicated office space “is no longer a ‘nice to have’, it’s become a highly sought-after feature because it provides the privacy, structure, and practicality that hybrid working demands”.

He adds: “Homes that can offer a genuine workspace, whether that’s a converted room, a garden office, or a purpose-built outbuilding, tend to stand out far more strongly in the market and attract more serious buyer interest.”

The firm looked at wider market house price averages as well as prices of properties with a home office on listing sites compared with those without, taking into consideration various home office options.

Based on the average UK house prices, Benham & Reeves found that an inside-the-home office space which exists in a dedicated room can give a boost in excess of an estimated £40,000.

The full estimates are in the table below, with added value based on the average house price of £270,873, taken from Nationwide’s House Price Index report last month.

Office type

Estimated value added (%)

Estimated value added (£)

Shed/small garden office

5.0%

£13,544

Outbuilding/summer house/large garden office

7.5%

£20,315

Inside office/dedicated existing room

15.2%

£41,173

Bryn Nettle, head of business development at property consultancy Strettons also sees growth potential.

He says: “If designed and presented well, a dedicated home office can add meaningful value, in some cases around £20,000–£25,000 depending on the property type and location.”

Nettle continues: “The key is quality and functionality. A well-insulated garden studio with power, heating and broadband connectivity will command a premium over a makeshift desk in a spare bedroom. Buyers are prepared to pay more for space that feels purposeful and permanent, rather than temporary.”

Naturally, these are just from averages and individual properties will depend on market factors, demand, location, size and more.

Will demand remain solid?

Nettle says that while homes with dedicated office space are certainly more desirable in today’s market, Strettons has not seen consistent evidence that they sell materially faster than those without offices.

Laura Dam Villena, head of residential agency at real assets advisory company Cluttons, believes a home office is now seen as a bonus for buyers, rather than a vital requirement.

She says in the post-pandemic rush of buyers looking for their long-term homes, “it was almost a necessity that buyers would demand an extra bedroom for ‘a work from home’ space in prime central London and beyond”.

Dam Villena adds: “The momentum of this demand has slowed down in central London, as major companies are implementing stricter return to work policies, with this trend expected to increase in 2026.”

Do your homework on home offices

While there can be lots of convenience and appeal for having a home office, including the prospect of your home value climbing, building one carries important tax considerations, according to Lisa Wilson, head of tax at accountancy group Cowgills.

Among facts to be aware of include that employees can only claim working-from-home tax relief where home working is required, not chosen. Or that for self-employed individuals, construction or conversion costs for a home office are not tax-deductible, but ongoing repairs and redecorating are allowable.

Wilson says understanding relevant rules early “can help homeowners maximise the benefits of a home office while avoiding unexpected tax costs when it comes to selling their property”.

When investing, your capital is at risk and you may get back less than invested. Past performance doesn’t guarantee future results.

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