However, it was found that over eight million homeowners are still planning to make improvements to their properties in the next year.
Phil Cliff, director of Abbey Mortgages, said: "Our research shows that very few home improvements will actually add more value than they cost to implement at the moment."
He added that it was "important" that people are choosing to make such changes "because they want to live in the end result and aren't doing them in order to add value alone".
Earlier this month, Abbey announced that is was reducing rates on several of its two and three-year mortgage products by up to 0.15 per cent.
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