Some home improvements do nothing to raise value

Everyone is a property expert in Britain these days or so they think. It seems half the country are decorating their homes to sell for a profit while the other half want to build up buy-to-let portfolios.

Yet, despite the abundance of useful tips available from watching the 19 hours of property and home improvement programmes aired during an average week on British television, it seems the growing army of small-time developers know less than they believe about what they are doing. They often waste time on pointless 'improvements' and sometimes their efforts lose them money.

Alliance & Leicester bank has found that one in five of its borrowers take out a loan to improve their homes. It has also discovered that many of these alterations lower the value of their borrowers' properties.

Its research shows estate agents consider decorative improvements and, better still, increasing the size of a home through building extensions are the best ways to add value. Seven in 10 estate agents say adding extra living space downstairs is the best improvement, but only half of homeowners agree.

Many borrowers fritter away loans on adding a conservatory, having a garden makeover or even installing a hot tub or swimming pool, in the belief that these schemes will add value. Estate agents shake their heads. Less than 1 per cent of those surveyed said swimming pools and hot tubs would add even a penny to the value of a property.

Worse, many home improvement projects make a property tougher to sell.