Millions of homeowners are planning to make a profit on their homes during the slow down in the property market.

According to research by Abbey mortgages, 1.2 million people say that they will trade up to a larger home in the hope of picking up a bargain before prices start to rise again.  And millions more, says Sainsbury's Bank, plan to add value to their exiting home by investing in extensions and conversions.

In all, Abbey estimates that two million people will take some action to make the most of what they see as an opportunity.  Some will sell up and rent, others will downsize, but by far the largest number are looking for an opportunity to buy a bigger and better home at a knockdown price.

Despite the large number of homeowners hoping to bag a bargain, Abbey says that the great majority have no plans to move at all.  Over two thirds (67 per cent) of owners have no plans to sell in the next 12 months.  Even here, however, nearly one in four (39 per cent) of those who don't intend to move are planning some form of home improvement.

That conclusion chimes with the results of research by Sainsbury's Bank which suggests that as many as 20 per cent of homeowners are gearing up to undertake some major home improvement.  The top five most popular improvements are: loft extension; conservatory; rear or side extension; converting outbuildings; and converting an existing basement.  Over half of these home improvers expect to spend between £5,000 and £20,000 on adding value (and space) to their home.