The home improvements that will bag you the biggest profits

Whether you've just moved into a fixer upper, need more space for the family or are trying to haul yourself a rung or two up the property ladder, you'll probably be asking the same question. What are the best ways to add value to your home?

The are plenty of options. You could fit a new kitchen, add a conservatory or fit new flooring, for example. But not every major renovation is made equal. Some will see a bigger increase on a property's value than others – and it's not always about how much you spend, either.

Related: The cheapest times of year to make home improvements – from garden clearing to fitting a bathroom

So to help identify the money makers and dodge the money pits, Towergate Insurance has come up with a nifty little calculator. Pop in the value of your home, and it will tell you which home improvements will add the most value.

We've entered the current average house price of £207,308, and come up with this countdown of the top ten most profitable home improvements.

Can you guess what's at number 1?

10. Add a bathroom

Find room for an en suite or extra bathroom, and you'll see a good return on your money.

Estimated profit £6,115  – based on an average cost of £4,250 and estimated value increase of £10,365 (5 per cent)

9. Renovate your fireplaces

Did you know that adding a wood-burning stove could make your home so much more saleable? Choose one of the new-generation, self-lighting models for maximum wow factor.

Estimated profit £6,865 – based on an average cost of £3,500 and estimated value increase of £10,365 (5 per cent)

8. Paint and decorate

Applying a fresh coat of paint or papering the walls is one of the most cost-effective ways to add value. You probably don't need us to tell you that neutral palette will have the broadest appeal to buyers.

Estimated profit £7,515 – based on an average cost of £2,850 and estimated value increase of £10,365 (5 per cent)

7. Tidy up the garden

Gardens sell homes. Fact. So unless your potential buyer is a wildlife expert, it's unlikely they will want to inherit an overgrown jungle. Invest in some hard landscaping to make your outdoor space more manageable. Or, at the very least, trim back overgrown hedges and mow the lawn.

Estimated profit £7,898 – based on an average cost of £7,650 and estimated value increase of £15,548 (7.5 per cent)

Read more: Pretty patio ideas for every garden space

6. Update your central heating

A modern system will be a must for most homeowners. If your boiler is more than 15 years old, consider replacing it.

Estimated profit £7,970 – based on an average cost of £3,225 and estimated value increase of £11,195 (5.4 per cent)

5. Embrace open-plan living

An updated kitchen alone won't bring you nearly as much profit as creating an open-plan kitchen and dining space. It's obviously an easier and more affordable job if you have non-load baring walls that you can knock down – which is what this profit estimate is based on.

Estimated profit £10,338 – based on an average cost of £2,100 and estimated value increase of £12,438 (6 per cent)

4. Make external repairs

Potential external issues can be extremely off-putting to house hunters. Painting render and addressing any repointing that may need doing will put their minds at ease. Even small details like a creaking garden gate shouldn't be overlooked.

Estimated profit £11,231 – based on an average cost of £9,500 and estimated value increase of £20,731 (10 per cent)

3. Convert the loft

A popular project at the moment, and one that has the potential to make you a bundle of cash when you sell. However, every project is different, and extra structural work like adding dormer windows or raising the height of the roof will eat into any profit. A dormer loft conversion with a double bedroom and en suite could cost £35,000-£40,000.

Estimated profit £13,596 – based on an average cost of £17,500 and estimated value increase of £31,096 (15 per cent)

2. Take energy saving measures

This is an easy win, especially for older homes, as you might be eligible for a Government grant to make improvements. Typical ways to boost energy efficiency are to install double glazing, add cavity wall insulation, or fit solar panels and generate your own power.

Estimated profit £18,303 – based on an average cost of £10,720 and estimated value increase of £29,023 (14 per cent)

1. Convert the garage

Get the job done: How to convert your garage

Sacrificing your garage for living space comes out on top when it comes to profitable home improvements. If you've been using yours as a dumping ground, converting it is a no-brainer. Just remember, though, if your garage is currently home to an actual car, permanently parking it on a driveway or the road might increase your insurance premium.

Estimated profit £18,303 – based on an average cost of £10,720 and estimated value increase of £29,023 (14 per cent)

Related: The pointless home improvements that WON'T add value – so should you even bother?

If you're saving for home improvements, will this affect where you spend your hard earned cash? Or will you be sticking to your guns and changing your home to make you happy, regardless of what value it adds?