Don't waste your money on big projects that reap little benefit. Find out what you can do to your house that is sure to increase its value

It is the great British dream: buy your family home, tastefully decorate and furnish it, and when the time comes, sell it for a whopping profit and move to something bigger and better. Adding value to your house sounds straightforward enough, but it is often trickier than many of us realise and we often get it wrong.

According to the Royal Institute of Chartered Surveyors (RICS), for example, laying new carpets and wooden flooring has little impact on value, and hot tubs can even decrease the value, as parents may be concerned about safety issues. So what does work? We look at five things you can do to your home, big and small, which may help increase its value.

1. Build an extension
'Well-proportioned extensions, not necessarily of the loft, that are in keeping with the design and proportions of the original house tend to add most to value in my opinion,' says Jeremy Leaf, spokesperson for RICS.

'Homeowners should be aware however, that the value of their property will not necessarily be increased by more than the cost of the work unless it is carefully planned and does not create 'top-heavy' accommodation, i.e. too many bedrooms and not enough reception area. A carefully planned conservatory may represent the lowest cost and best value alternative.'

According to RICS, an extension such as a conservatory is likely to add five per cent to the value of your home.

2. Add a new kitchen or bathroom
According to a survey by B&Q, the average value added to a property by replacing an old kitchen with a new one is £5,000, and £3,000 for a bathroom. If you are feeling brave and able to install a bathroom yourself, B&Q suggests that it should cost around a third of the price of having it done professionally: on average around £1,300 (or £3,250 if you get a builder in).

'If you want to increase the value of your property I recommend updating your kitchen and bathroom,' suggests Peter Bolton King, chief executive of the National Association of Estate Agents.

'Many people consider these to be the key rooms in a home and modernising these areas will certainly help boost both the value of your property.'

3. Make your home lighter
Tara O'Gorman, an interior designer (www.taramichelleinteriors.com), suggests making your home lighter to create a more welcoming atmosphere and ultimately increase the price.

'The entrance hall is the first impression of the inside of any home. Create some interest here with the use of warm and inviting colours, such as Farrow & Ball's 'String' colour, or some interesting wallpaper. Add interest and a feeling of light with a crystal chandelier (see our top ten modern chandeliers), quirky mirrors and pictures.'

4. Add a garage
Garages are an increasingly effective selling feature for house hunters. A garage costs between £15,000 and £40,000 to build, but the outlay is likely to be recouped in full when it comes to selling.

Jeremy Leaf says: 'If parking is difficult and expensive in your area, or security of cars is an issue and the rest of the street has a garage, then you should definitely build one.'

5. De-clutter
If you have lived somewhere for more than 10 years, order a mini-skip and throw out anything you are not using.

'People accumulate far too much clutter, and to show your property off to its best advantage, potential buyers need to be able to see the rooms,' says Noel Harris of Bowes Mitchell estate agency.

'And if you are the type of person who can't bear to throw away those birthday cards you received 20 years ago then it's time to call in the professionals. There are 'de-clutter consultants' who will do it for you, such as Anita Kenna (www.anita-design.co.uk).