Properties for sale with a home office command a premium of £17,500, according to Direct Line Home Insurance.

It found the average price of a home with an office is £456,500, 4% higher than equivalent properties without one (£439,000).

Nearly three quarters (73 per cent) of estate agents say a dedicated home office now adds considerably to the desirability of a property.

What counts as a home office?

Studies and dedicated office rooms account for many listings (35 per cent), while sellers are also calling external studios (29 per cent), converted lofts (nine per cent) and even landings or mezzanines (six per cent) home office space.

Estate agents recommend clients market large landings (12 per cent) and garages (eight per cent) as ripe for office conversion when putting their home on the market.

But they advise against converting bedrooms into home office space, saying it can negatively impact the property price.

Demand up

The pandemic and lockdown have fuelled demand for home offices, with 18.8 million people now working from home.

Just one in 10 of homeworkers are lucky enough to already have a dedicated workspace. Nearly two thirds (61 per cent) of home workers have had to set up their office in a shared or social space like a living or dining room.

Dan Simson, head of Direct Line Home Insurance, said: “Home working is likely to be in place for millions of people for a long time to come because of the pandemic. While lockdown is easing, many employers are already encouraging their workforce to work flexibly long term, to reduce numbers in the office for social distancing measures and to save on office costs.

“As their home office is likely to become a permanent fixture in their lives, it’s understandable many people are now starting to think about the changes and improvements they could make to their property to make home working more comfortable.

“Our research shows, not only does a dedicated office help a separation between work and home, it can also add significant value to a property. Anyone considering building work just needs to remember to inform their insurer before the work is carried out and update them on any additional rooms created so they have the correct level of cover.”