Air conditioning could add more than £20,000 to the value of your home, according to new research, as Britain's increasingly frequent heatwaves reshape what buyers are looking for. Once considered a luxury, built-in cooling is quickly becoming a sought-after feature as rising summer temperatures change expectations of modern homes.
Research by Benham and Reeves found that properties with built-in air conditioning remain exceptionally rare, making up just two per cent of homes currently listed for sale across England. That scarcity could work in homeowners' favour, with the estate agent estimating that installing air conditioning could increase a property's value by more than £20,000.
Here's why air conditioning is becoming one of the UK's most desirable home upgrades, how much value it could add to your property, and why experts expect demand to keep rising.
Why is air conditioning becoming more valuable?
Following record-breaking temperatures in June and with further heatwaves forecast, more of us are looking for permanent ways to keep our homes comfortable during the summer months.
‘The reality is that our homes simply weren't designed to cope with the kind of temperatures we've experienced in recent summers,’ says Marc von Grundherr, director of Benham and Reeves.
However, despite growing demand, homes with built-in air conditioning remain difficult to find on the market.
How much value could air conditioning add?
Installing built-in air conditioning isn't inexpensive, but the figures suggest it could offer a worthwhile return.
Benham and Reeves estimates that installing a wall-mounted air conditioning unit in a single room costs around £1,900. However, it says that doing so could increase a property's value by approximately 2.5 per cent – the equivalent of almost £7,000, based on the current average UK house price.
After installation costs have been deducted, homeowners could still be left with an increase in value of more than £5,000 for a single room.
Extend the installation across four rooms and the potential uplift rises to more than £20,000 – making it one of the few home improvements that can improve everyday comfort while also boosting resale value.
What about rentals?
Demand for air conditioning isn't only influencing property sales – it's also becoming a significant selling point in the rental market. ‘We've also found that homes with built-in air conditioning can command around 15 per cent higher rents on average and, during the hottest periods of the year when demand peaks, we've seen premiums reach as much as 20 per cent,’ explains Marc.
The demand has become so strong that some renters are even willing to pay for it. ‘In fact, we recently agreed a tenancy where the tenant was so keen to secure air conditioning that they offered to fund the installation themselves, in exchange for a longer-term tenancy.’
As hotter summers become more common, air conditioning appears to be moving beyond a premium investment, and towards a feature that both buyers and tenants are increasingly expecting. Installing it now could not only make the next heatwave more comfortable, but also make your home significantly more valuable if and when it's time to sell.
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The Cooling Edit
