MORE than three million homeowners plan to move house over the next 12 months, despite a slowdown in the housing market and worsening mortgage rates. But many recognise that they will have to work hard to sell their existing home, spending on average £3,000 redecorating to improve its saleability.

The determination to move house, highlighted in a study by Alliance & Leicester (A&L) , a bank, has surprised lenders and analysts many of whom are predicting property price falls of 10 per cent by the end of the year.

Richard Taylor, head of mortgage products at A&L, says: "Even within the current climate, there are still millions of people who are looking to move and they are doing all they can to get the best price for their property.”

The most popular way for homeowners to add value to their homes is to redecorate, closely followed by improving the outdoor space and carrying out routine maintenance.

However there is a reluctance to make substantial improvements, with only one in six planning to add an extension and only one in ten planning to make their home more eco friendly.

Research by the consumer champion Which? found extensions and loft conversions added most value to a property although they are also the most expensive to carry out. A conversion can cost around £13,000 to £22,000 for a 4x5m area with stairs, electrics, heating and two windows, according to Which? Extra windows increase the cost. Conversions can take four to six months or more from planning to completion.

For those looking to buy, the most important factor is the number of bedrooms in the property, claims A&L. A large kitchen also features high on buyers' wish lists. Almost half of potential buyers prefer off-street parking, while only a third value having a garage.

Buyers are most put off by transport noise with 74 per cent citing busy roads, 67 per cent nearby railway tracks and 63 per cent air traffic as the top turn offs.

Top tips for extending your home

Planning permission in England, Wales and Northern Ireland is required if the total extra space exceeds 70m squared or 15 per cent of the original volume of the house – whichever is greater. Previous extensions can count towards these limits, so always check with your local authority.

If you need an architect, make sure they are registered with the Architects Registration Board and it may be wise to find one who is also a member of the Royal Institute of British Architects . Once you’ve got the plans right, you must submit them to the local authority for planning permission. This covers appearance, use and access to extensions and new buildings. The work will also need building regulations approval.

When hiring builders, ask for recommendations from friends or family and make sure the trades that you choose are affiliated to a registered body such as the Federation of Master Builders .

Also check whether they are registred with theTrustMark scheme, which lays down government-backed standards for the building trade. The Construction Licensing Executive runs a similar scheme in Scotland.

Even if professionals are members of a registered body, always get three written quotes and references to check previous work.