Longer daylight hours at this time of year prompt many home owners to tackle DIY projects but which ones will add most value to their property?

With higher taxes on moving home, four increases in the rate of stamp duty, and other costs associated with conveyancing, financial advisers say there is a strong argument for »improving not moving».

Richard Winder, spokesman for the professional advice website Unbiased.co.uk, said many people are planning substantial home improvements this year.

HomeServe, a home repair and maintenance company, estimates that more than 130,000 households embarked on home renovations during the past three months, costing between £25,000 and £50,000.

Jon Florsheim, chief executive of HomeServe Membership, said: In a depressed market, many home owners are taking extra care to improve their home by redecorating and investing in kitchen and bathroom upgrades.

But before you reach for the hammer, it is important to realise that home insurance could be invalidated if you do certain tasks without following the relevant compliance procedures.

Research by Sainsbury’s Home Insurance suggests that more than 5.2m people have carried out electrical work in high-risk areas such as kitchens, bathrooms and gardens this year, leaving them without cover should things go wrong.

Mr Florsheim said home owners who attempt jobs above their skill level often find it can be false economy, as bodged jobs require professional help to correct.

Utilising approved and vetted tradesmen can help Britons ensure they do not invalidate their home insurance policies if a problem occurs, he said.

If you are set on tackling a renovation, always ensure you have accidental damage cover in place with your home insurance so you are covered should you cause unintended damage. For example, if a home owner has added home emergency cover to their policy and drills through a water pipe, many insurers will provide cover for call-out charges and the repair of the water leak by a plumber, plus costs incurred to replace the damaged pipe and repair the surrounding wall.

Mike Pickard, head of risk and underwriting at esure home insurance, said: For anyone thinking about attempting DIY jobs around the home, having ample buildings and contents insurance, plus accidental damage cover to foot the bill of any DIY mishaps, is definitely worthwhile.»

Not all refurbishments will pay for themselves when a property is sold. For example, according to RICS, installing a basement could cost £50,000, but might only make a measly £4,000 when you sell. While reinstating original chimneys and fireplaces might seem like a great way to bring back period features, it does not add extra value, according to RICS.

Melanie Bien, director of independent mortgage broker Savills Private Finance, said: You should also consider carefully how you fund the project. A further advance from your lender may be the easiest way but lenders are looking more closely at overall loan-to-values (LTV) so if this takes you above the 75pc mark, you may find it harder to remortgage at a later date. If the LTV goes above 90pc the lender may insist on a valuation of the property. Remortgaging the entire amount and raising extra to cover the cost of improvements is another option, although only advisable if you are coming to the end of your existing deal so you don’t have to pay a redemption penalty.

Some projects require you to apply to the local authority for planning permission, which covers appearance, use and access to extensions, and new buildings and the work will also need building regulations approval. This relates to structural alterations, construction standards and safety.

For major works on listed buildings such as structural repair, your local authority or regional office of English Heritage might be able to help. Visit www.english-heritage.org.uk

The introduction of Home Information Packs in 2007 has prompted owners to improve their home’s energy efficiency. Energy grants offer discounts for loft and cavity wall insulation, reductions on energy-efficient appliances and grants towards a boiler and low carbon products. To find if you qualify for help, visit energysavingtrust.org.uk and lowcarbonbuildings.org.uk for more information.