The amount you should allocate in your home renovation budget when renovating your home depends on how much you are willing to put into the project and what you anticipate getting back. If it’s your dream forever home, your home renovation budget might be more flexible, but if you’re looking to make a profit and sell it on afterwards, it might pay to be a bit more frugal with your spending. Generally speaking, when setting your home renovation budget, it’s a good idea to avoid overspending on aspects that may not add much value to your home.

One rule of thumb you can use for your home renovation budget is to spend no more than 20% of your home’s value on renovations. For example, if your home is worth £1,500,000, your home renovation budget could be around £300,000. However, this is just a guide and it will often depend on what you’re investing in and how much value it might add. And if you’re planning to stay in your home for a long time, you’ll want to think about the benefit to you over the long term and whether your home aligns with your style.

Some interventions will naturally have a better return on investment (ROI), such as kitchen and bathroom remodels, while others might not fit within the home renovation budget due to the extra expense. An estate agent can help you assess the potential value of your planned renovations and advise on setting an appropriate home renovation budget.

Ultimately, determining your home renovation budget depends on what you feel comfortable with. With a project of any size, it’s essential to establish a clear home renovation budget and define your goals before making any major decisions.