The latest research from Nationwide has revealed that home improvements can boost property prices, with extensions or loft conversions with a bedroom increasing value by up to 24%.

Andrew Harvey, Nationwide's Senior Economist, said: “Location remains key to house values, but other factors, such as the number of bedrooms, are also important to homebuyers. Home improvements that increase the size of the property, such as an extension or loft conversion, remain a compelling way to add value.

“Having more useable space is generally thought to be consistent with better quality accommodation and people are prepared to pay for it. A 10% increase in floor space, all things equal, adds 5% to the price of a typical house. But our analysis suggests that it is additional bedrooms that are key to adding value. For example, adding space to create an additional double bedroom can add 13% to the value of an existing two-bedroom house.

“Homeowners that add a loft conversion or extension, incorporating a large double bedroom and bathroom, can add as much as 24% to the value of a three-bedroom, one-bathroom house.

“Our analysis suggests that, providing the room is useable, this can be a good way to increase the value of a property.”

Converting a 2-bed into a 3-bed adds 13% to the value of a terraced home, 14% to a semi-detached and 17% to a detached home. Whilst adding a bedroom to a 3-bed home adds 10% to both terraced and semi-detached, and 13% to a detached home.