A belief that fitting new kitchens or bathrooms will boost resale value is the basis for widespread market confidence, with 57 per cent of Scots undertaking work to improve their property after purchase.
Research by Co-op Insurance revealed that 87 per cent of homeowners north of the border think their house value has increased since they bought it - by an average of £27,542.
The study found 31 per cent of homeowners bought their property with their eye firmly on how much money they could make from their investment.
The average price of a property in Scotland in December 2016 was £141,553 - an increase of 3.5 per cent on the previous year.
Caroline Hunter, head of home insurance at Co-op, said: “Our study shows that homeowners believe by investing in décor and bigger renovation works they are adding value to their homes for future years.
“Kitchens have long been lauded as the heart of the home and our study continues to solidify this, with over half of homeowners believing that this is the room of the house that could make, or break, a sale.
“While they are a big draw for prospective buyers, they can be expensive, therefore it’s important to revisit your home insurance policy to ensure you have the right level of cover in place during the building works, to protect you from additional risks during the work. Don’t assume your builder will have insurance in place that covers you in every eventuality.”