More people are making the most of the current low interest rates to borrow money to improve their home, and view the spending as an investment for the future.

The top five home improvements are currently:

1. adding central heating
2. having a new kitchen
3. fitting a new bathroom
4. adding insulation
5. an extension

But pouring cash into home improvements offers no cast-iron guarantee that you will increase your home’s value.

As a general rule, if you’re going to make alterations, then you should do it because you want to for your own convenience and comfort, rather than to simply add value.

A spokesman for what?price.co.uk said: “At the end of the day, many improvements should add to the saleability of your home, and make a huge difference to selling.

“However that still doesn’t stop people from asking what home improvements really pay off when the time comes to sell your house?”

“That answer starts with the fact that really major improvements – room additions, total replacements of kitchens and bathrooms, etc., rarely pay off fully in the near term. It ends with the fact that small and relatively inexpensive changes can pay off in a big way in making your home attractive to buyers if your decision is to move now.

“It’s a simple fact, consistently confirmed across the UK over a very long period of time, that even the most appropriate major improvements are unlikely to return their full cost if a house is sold within two or three years.”

Does that mean that major home improvements / renovations are always a bad idea? Of course not. It does mean, though, that if your present house falls seriously short of meeting your family’s needs you need to think twice – and think carefully – before deciding to undertake a major renovation.

Viewed strictly in investment terms, big improvements rarely make as much sense as selling your present home and buying one that’s carefully selected to give you with what you want.

The what?price.co.uk spokesman said: “Even if you have a special and strong attachment to the home you’re in and feel certain that you could be happy in it for a long time if only it had more bedrooms and baths, for example, there are a few basic rules that you ought to keep in mind before undergoing any house renovation.

“Probably the most basic rule of all, in this regard, is the one that says you should never – unless you absolutely don’t care at all about eventual resale value – improve a house to the point where its desired sales price would be more than 20 per cent higher than the most expensive of the other houses in the immediate neighbourhood.

“Try to raise the value of your house too high by performing major home improvements and surrounding properties will pull its value down.

Indeed, some “improvements or renovations” can actually reduce your home’s value, and your chances of selling at a good price.”

So, what are the sure-fire winners, which should pay for themselves and boost saleability when you come to move?

These key points should be considered before booking a builder:

Central heating can be expensive to install in your home but future potential purchasers may be put off if you haven’t got it, so you should recoup your money with this improvement.

Secondary-glazing on the inside of existing windows may be preferable to double glazing for a period home with original features. Although you are likely to get back only a third of your money on double glazing, savings will be made on household electricity and heating bills.

The what?price.co.uk spokesman said: “Make sure any improvements are appropriate to the character of the property. Try to avoid replacing old features – such as stained glass, picture rails and original skirting boards with modern ones.”

Rooms which add value

An extra bathroom should keep its value, as long as it is not built at the expense of a bedroom. If the property is fairly large and has upward of five bedrooms with one bathroom – converting a bedroom into a bathroom may have appeal and homeowners may possibly break even on their investment.

The what?price.co.uk spokesman said: “A new kitchen is a popular home improvement but homeowners are unlikely to get back more than their original investment.”

Knocking through walls may provide additional space but will also provide fewer rooms – and any reduction in rooms could devalue the property.

The what?price.co.uk spokesman said: “Never rearrange the interior of your house in a way that reduces the total number of bedrooms to less than three. Never add a third bathroom to a two-bath house unless you don’t care about ever recouping your investment. Garages are sought after features and will almost certainly recoup an investment.”

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Photograph shown by Philip Bier