Adding a bedroom and a bathroom through an extension or loft conversion can add more than 20% to a property’s value, according to Nationwide, topping the list of home improvements that can boost the potential price of your property.

It also found that extending to accommodate an extra bedroom on its own can add more than 10% to your home’s value, while an extra bathroom adds 5%.

Robert Gardner, Nationwide’s chief economist, said: “Location remains key to house values, but other factors such as the size of the property, including the number of bedrooms it offers, are also important to homebuyers. Home improvements that increase floor area, such as an extension or loft conversion, remain a good way to add value.

“Ultimately of course, the decision to invest in the home is an individual one, taking into account the costs and hassle involved, as well as potential benefits.”

Space matters

Having more useable space is generally thought to be consistent with better quality accommodation and people are prepared to pay for it, according to the building society’s research. A 10% increase in floor space, other things equal, adds an average of 5% to the price of a typical house, whilst adding space equivalent to a typical double bedroom to a two-bedroom house can add around 11% to its value.

Energy efficiency

Other ways of making your home more attractive include making it more energy efficient, and energy costs remain a concern for households.

Energy efficiency ratings for homes are gauged in terms of the A-G ratings, comparable to those used for domestic appliances, with A being the most efficient. Since 1996, the proportion of owner occupied property rated A-D has increased from 20% to 71%.