An overwhelming 91% of homeowners think their house value has increased since they bought it – by an average of £33,125, according to Co-op Insurance.

The firm undertook research which revealed that 31% of homeowners considered the money they could make from their investment when they bought their property.

Of these, a reliance on house prices increasing generally was the main way (62%) homeowners were hoping this would happen.

Location was also a key deciding factor with over a third (34%) buying in an already desirable area whilst 32% of people did their research and sought out properties in areas classed as ‘up and coming’.

The majority – 76% – of homeowners in the UK have made changes to their property since they moved in. And, of these, 60% believe the renovation works they’ve completed has led to an increase in value. On average, the renovation and decorative work that homeowners have invested in came to £18,224. This means that, on average, homeowners are seeing a £14,900 profit as a result of these works.

Caroline Hunter, head of home insurance at Co-op, said: “Our study shows that homeowners believe by investing in décor and bigger renovation works they are adding value to their homes for future years.

“Kitchens have long been lauded as the heart of the home and our study continues to solidify this, with over half of homeowners believing that this is the room of the house that could make, or break, a sale.”

“Whilst they are a big draw for prospective buyers, they can be expensive, therefore it’s important to revisit your home insurance policy to ensure you have the right level of cover in place during the building works, to protect you from additional risks during the work. Don’t assume your builder will have insurance in place that covers you in every eventuality.”