The most profitable home improvements in the UK include installing a new boiler or central heating, energy saving and home security, according to new research.

However, the cost of updating flooring, bathrooms and kitchens may outweigh any added value these kind of improvements could have, says the study from GoCompare home insurance.

Redecorating, laying new flooring or updating a bathroom may slightly increase the value of a property, but the costs of doing so generally outweigh any potential profit, it adds.

It points out that some 26 per cent of home renovations are undertaken to add value to a property, but many homeowners could be making a loss by opting for the wrong projects.

The firm has created what it calls a Property Investment Calculator which shows the home improvements which add value to a property.

A new boiler, central heating and double glazing all add four per cent to the value of a home, while knocking through rooms and installing a kitchen add two per cent and a garden makeover, painting and decorating and a new bathroom add one per cent. New flooring does not add or lose value, while installing solar panels actually reduces the value by two per cent.

“Most people who are thinking of selling their home or looking to improve it to add value will consider the merits of a trip to the DIY store. Some will even consider doing some building work in the hope of adding value, but not all buyers will be prepared to pay for your idea of improvements or good taste,” said Henry Pryor, a property buyer who worked on the research.

“It’s therefore essential that you think carefully about why you are spending extra money and who will benefit. My advice is to spend money on the things that you want and leave other improvements to the next person who may not share your taste,’ he explained.

“Most buyers prefer to pay for the opportunity to be able to add an attic conversion, kitchen extension or convert a basement.”