As homeowners again look to increasing value in their properties instead of moving, many may be making entirely the wrong decisions about which improvements to make.

Homeowners believe that new kitchens and bathrooms are most valuable property improvements, but estate agents say differently. On average, say the agents, loft conversions and extensions offer £18,000 more value and after costs are accounted for, loft conversions add up to 4 times more value than new kitchens or bathrooms.

Andy Deller, director of banking and insurance at Egg said: “Homeowners making improvements to their homes to increase their value seem to be missing out on the most valuable additions."

"With many people borrowing money via either a loan or remortgaging, it’s essential that the work carried out genuinely increases the property’s value.”

Average UK homeowners could improve the value of their home by almost £25,000 after costs by carrying out estate agent valuers’ top two recommendations of a loft conversion and a room extension. However homeowners’ top two choices, of a new kitchen and bathroom, would add on average only £7,000.

The table below lists the improvements homeowners say they would carry out first, in order to increase the value of their property. To contrast these consumer views Egg also polled 110 estate agents from across the UK for their recommendations based on the average home in their area.

Andy Deller again: “In many cases homeowners justify a desirable new kitchen or bathroom to themselves as they think it will increase the value of their home. However, in reality improving durable fixtures and fittings adds considerably less value than extensions or loft conversions that ultimately increase a property’s living area.”

Regional differences

Best value home improvements differ considerably, both in type and value, depending on region and style of property. In the more metropolitan and densely populated areas of London and the South East, loft conversions on average offer the best potential increase to a property’s value, adding as much as £26,750. However, in the more rural area of East Anglia, conservatories backing out onto open spaces benefit properties most, adding an impressive £18,800.

Even estate agents’ widely considered worst value improvement, outdoor decking, varies hugely on location. In built up areas such as London, where making the most of any outdoor space is important, decking adds on average £2,400. In contrast, in the countryside dominated South West, a decked or terraced area adds a negligible £85.

Type of property

Similarly, the type of property largely influences which improvements are likely to add most value – clearly, extensions just aren’t possible in many flats. The strategy of ‘making the most of what you have’ holds true for apartments. Estate agents suggest that new kitchens, followed by new bathrooms are likely to add the most, where as resurfacing a run up or parking area are the biggest waste of money for a flat owner.