When you start exploring ways to improve your property, one big question usually appears early in the process. Should you build an extension, or would an internal conversion deliver the result you need? For many UK homeowners...
When you start exploring ways to improve your property, one big question usually appears early in the process. Should you build an extension, or would an internal conversion deliver the result you need? For many UK homeowners planning a home renovation, this decision shapes the budget, the planning route, and the overall experience of the project.
Both options can create more space and dramatically improve living space. However, they involve different levels of structural work, different planning requirements, and different costs. In this guide, we will compare house extensions with internal conversion options such as loft conversion projects, garage conversions, and even barn conversion schemes, so you can decide which approach is right for your house.
Understanding the Core Difference
An extension increases the physical footprint of your house. It adds new walls, foundations, roof structures, and floor space, effectively expanding the building outward.
An internal conversion works within the existing space of your property. Instead of building out, you focus on converting underused areas such as loft spaces, garages, or redundant outbuildings. Both approaches can create additional space, but the scale and complexity of the building process differ.
Understanding this difference is crucial at the early stages of your renovation project, especially when comparing cost, planning permission, and disruption.
What Is a House Extension?
House extensions involve constructing new floor area that extends beyond the original walls of the house. This might be a rear extension, side return, wraparound extension, or even a double storey addition.
Expanding the Footprint
By building outward, you physically add space to your property. This is often the preferred choice when you want a larger kitchen diner, open plan living space, or a completely new room at ground level.
House extensions can significantly increase square metre area and allow you to redesign layout completely. However, they usually require planning permission unless they fall within permitted development.
Structural and Planning Considerations
Extensions require foundations, new roof structures, insulation, and full compliance with building regulations. The planning process may involve submitting planning applications and securing planning approval before work begins.
For properties in a conservation area or area of outstanding natural beauty, planning restrictions may apply, and planning consent can take longer to secure.
What Is an Internal Conversion?
An internal conversion focuses on transforming existing space rather than expanding the building footprint.
Loft Conversion
A loft conversion turns unused loft space into a practical living space. This may include an additional bedroom, home office, or en suite. The feasibility depends on head height, existing roof slope, and structural capacity.
Many loft conversion projects fall under permitted development rights, although larger dormer designs may require planning permission. Loft conversion cost varies depending on roof alterations, steel frame installation, and internal finishes.
Garage Conversions
Garage conversions are a popular way to add space without extending outward. By converting a garage into a new room, you can create extra space for family living, a study, or even extend a kitchen layout internally.
Garage conversions often fall within permitted development, but this depends on your property and local planning restrictions.
Barn Conversion
A barn conversion is typically undertaken in rural settings. Converting agricultural buildings into living space requires careful attention to planning permission and development rights, particularly in areas of outstanding natural beauty.
Barn conversion work can preserve period features while creating modern living space, but the building process can be complex.
Planning Permission: Extension vs Conversion
Planning permission is often the deciding factor between extension and internal conversion.
House extensions are more likely to require planning approval, especially if they exceed permitted development size limits. A new extension that alters the external appearance of the property may also require planning consent.
Internal conversion projects, such as loft conversions or garage conversions, may not require planning permission if they comply with permitted development rights. However, in a conservation area, or if the property is a listed building, even internal changes can require planning approval.
Always confirm whether your project will require planning permission and how the planning process works in your local area.
Permitted Development and Development Rights
Permitted development rights allow certain home conversion projects to proceed without full planning permission. This can make internal conversion attractive from a time and cost perspective.
A loft conversion that does not significantly alter the roof profile may qualify under permitted development. Similarly, garage conversions that retain the external façade often fall within permitted development rights.
However, development rights are restricted in certain locations, particularly in areas of outstanding natural beauty and conservation area designations. Understanding these planning restrictions early can prevent delays.
Building Regulations and Structural Requirements
Whether you choose an extension or internal conversion, building regulations apply.
Structural Work in Extensions
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House extensions require new foundations, load-bearing walls, and roof construction. A structural engineer will typically calculate load paths and specify steel frame elements where needed.
Structural Work in Conversions
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A loft conversion often requires strengthening floor joists, adjusting floor height, and inserting steel frame supports. Garage conversions may involve upgrading insulation, damp proofing, and ensuring structural integrity.
Building control inspections occur throughout the building process, with a final inspection required before sign-off.

Comparing Cost and Budget
Cost is one of the most important considerations in any renovation.
Extension Cost Factors
House extensions generally involve higher costs because you are constructing entirely new building elements. Foundations, roof work, drainage, and external finishes add to the budget.
Cost per square metre for extensions is often higher than internal conversion work. The costs involved should include design, structural engineer fees, planning applications, and labour.
Conversion Cost Factors
Loft conversion cost depends on structural complexity, roof modifications, and internal layout. Garage conversions can be more affordable, especially when major structural changes are not required.
Including a healthy contingency in your budget is essential for either route, as unforeseen issues may arise during structural work.
Space, Layout, and Usability
When deciding between extension and conversion, think about how the space will function in everyday life.
An extension allows you to create a large, open-plan living space with improved natural light and garden access. It can dramatically change how the ground floor feels. A loft conversion creates additional bedroom space upstairs, potentially freeing up rooms below. Garage conversions can create usable space without altering the garden footprint.
Consider whether the goal is to create more space downstairs or to add extra space above.
Impact of Property Type
Your property type will influence what is feasible. A terraced house may have limited side access for house extensions and may require compliance with the Party Wall Act. A semi-detached house or semi-detached property also triggers Party Wall Act requirements when undertaking structural work near shared walls.
If you own an old house, preserving period features during renovation is important. Converting a loft in an older building may involve relocating a water tank or adapting roof timbers.

Party Wall Act Considerations
The Party Wall Act applies when structural work affects shared walls. This is common in terraced house and semi-detached house projects.
Both house extensions and loft conversion projects may require serving notices under the Party Wall Act. Failing to follow this legal process can delay building work.
Always discuss Party Wall Act obligations with your contractor before starting the project.
Disruption During the Build
Extensions can be more disruptive because building work takes place both externally and internally. Excavation, roof construction, and structural work can affect daily life.
Internal conversion projects, such as garage conversions, may allow you to remain in the house with slightly less disruption, particularly if the space is separate from the main living areas.
Ask for a step-by-step guide outlining the building process and timeline so you understand what to expect.
Resale Value and Long-Term Benefits
Both extensions and conversions can increase property value.
A loft conversion that adds an additional bedroom or en suite can significantly boost appeal. A well designed new extension can transform kitchen and dining areas into flexible family space.
Consider whether you are creating your forever home or renovating with resale in mind. Each conversion project should balance cost against long term value.

Self Build Versus Professional Contractors
Some homeowners consider self-build options to save money. However, major structural work requires professional oversight.
Building regulations compliance, structural engineer input, and final inspection sign-off must be handled correctly. Mistakes can be costly to rectify. Working with experienced contractors ensures the renovation process runs smoothly and safely.
Planning in Special Locations
If your property is in a conservation area or an area of outstanding natural beauty, planning permission rules are stricter.
Barn conversion and loft conversion projects in these areas may require detailed planning approval and careful design to protect the character of the location.
Listed building status adds another layer of complexity, often requiring specialist advice.
Creating a Practical Living Space
Ultimately, the goal of any renovation is to create a comfortable, practical room that improves daily life.
Whether you choose house extensions, a loft conversion, or garage conversions, consider how the new space will connect with existing rooms. Think about natural light, storage, and layout flow.
The best solution is the one that suits your house, budget, and long term plans.

Top Tips for Deciding
Here are some expert tips to help you decide between extension and internal conversion:
- Assess whether your loft space has adequate head height
- Compare the loft conversion cost with the extension cost per square metre
- Confirm whether the project will require planning permission
- Review permitted development rights carefully
- Include a healthy contingency in your budget
- Consider impact on garden space and privacy
Every property is different, so weigh the advantages carefully.
Final Thoughts
Choosing between an extension and an internal conversion is a major decision in any house renovation. Both routes can create additional space, improve living space, and enhance property value.
House extensions physically expand the building, offering flexibility and dramatic layout changes. Loft conversions, garage conversions, and barn conversions unlock hidden potential within existing structures.
By understanding planning permission requirements, building regulations, cost implications, and structural considerations, you can confidently choose the option that delivers the best outcome for your property and lifestyle.
The Conversion Guy - A Trusted Home Renovations Specialist in Derbyshire & Staffordshire
Are you ready to take the plunge and transform your home? Well, look no further! The Conversion Guy is committed to providing you with a home renovation experience that is unparalleled.
With over 40 years of experience in home renovations, we are looking forward to helping you turn your home into a functional and beautiful space! We love talking conversions, so be sure to get in touch today or book a free consultation and start your journey towards a more spacious, versatile home.
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