How to add value to your house - a step-by-step guide ¦ Property Guides on Times Online

The property market has come to a halt and we can no longer expect the price of our homes to rise month after month automatically. However, there are ways of boosting the value of your own home even through sluggish times, provided that you are careful and canny. Here are 10 things you need to know before you embark on a costly project:

1. It may not be worth it: Make sure that the amount you are spending is proportionate to the overall value of your home and other property in your area. In other words, don’t spend £50,000 on a new kitchen if your house is worth less than £500,000. You will not get the money back. Check with a local estate agent.

2. It is always going to be more expensive than you think: Few projects come in on budget and get done on time. Builders tend to give optimistic quotes rather than worst case scenarios. Build in a margin of error. For a ‘ball park £30,000” read £50,000, instead.

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3. Some Improvements add more value than others: Expanding the actual size of the property is the best way to add the most value. A loft conversion, a rear or side extension, or even digging out the cellar gives you more space. But modernising the kitchen and the bathroom (in that order) should also be high on the priority list.

4. Bad DIY will reduce the value of you property: Remember the sins of the 1970s. Avoid stone cladding and removing period features such as fireplaces and decorative plasterwork. Make sure any home improvements are in keeping with the age and style of the house. uPVC windows and laminate floors may work well in a new flat but can cheapen a Victorian home. Adding an extension that occupies the entire garden is also bad news.

5. Never lose a bedroom: It may be tempting to turn a small bedroom into an extra bathroom or even a dressing room. But you could lose out. Although more estate agents now market homes according to their square footage, especially at the top end of the market, the number of bedrooms is still the preferred indicator of the size of a property for most people.

6. Buyers are unlikely to pay more for eco-features: Sad but true. Although making your home more energy efficient will save money on heating bills, it will not necessarily boost its price. However, in a slow market a property which is well insulated and has a new condensing boiler will have the edge over one which doesn’t.

7. Put in central heating: Most properties now have full central heating. But adding some where there is none boosts value.

8. Park the car: Turning the front garden into a parking space is neither environmentally sound nor attractive. But a property with off-street parking does carry a premium of 6 per cent over similar homes, especially in built-up areas.

9. Invest in a skip: The cheapest and most effective way to increase your living space might be to decrease the amount of clutter in your home. You may not need to build that extension after all.

10. The project will drive you and your neighbours mad: Make sure you understand the size and scope of the project yourself and be upfront with your neighbours. Living with builders can be disruptive, noisy and dirty. Be realistic about the time frames.

How much does it cost?

There is no limit to what you can spend upgrading your home. But here are some rough estimates based on a three-bedroom semi:

1. Simple loft conversion - £35,000 to £45,000

2. Rear extension - £20,000 to £30,000

3. Basement conversion - £6,000-£70,000 if you already have a small basement up to £200,000 if you are starting from scratch

4. New bathroom - £3,000 to £4,000 but this could double if you upgrade materials

5. New kitchen £4,000 for a simple kitchen but you could easily spend £40,000 or more on something bespoke

Figures from the Federation of Master Builders