More and more American homeowners are being forced to live in their cars as the credit crunch continues to take its toll.

According to The Guardian, there are a growing numbers of middle-class professionals in the USA who are losing their homes and having to live out of their cars.

The paper reports that a homeless agency in California has launched a safe parking scheme, to give those who have nowhere to go other than their vehicle a place to park.

Luckily for us, most homeowners in the UK have not been hit quite as badly by the crunch – in fact, according to GE Money Home Lending, by making just three home improvements, Brits could add £54,922 to the value of their home.

Gerry Bell, head of mortgage marketing at GE, says: “With the softening of UK property prices, more consumers are potentially looking to carry out home improvements rather than move house and our analysis has revealed how much certain improvements can add to the value of your property.”

The lender has found that the top home improvement is a loft conversion, which could increase the value of a UK home by over 12%.

The research found on average a loft conversion would potentially add £22,898 to the price of a property, whilst building an extension could increase the value by approximately £19,800. Adding a conservatory, the third best way to add value to your home, could increase its value by around £12,229. These three improvements combined could add £54,922 to the value of a typical home.

And people are acting fast – according to Alliance & Leicester, more than one in three homeowners have made improvements specifically to increase the sale appeal of their home.

A&L has predicted that 3.25 million homeowners are looking to move over the next 12 months. It also found that more than one in three homeowners who have sold a property in the past have, at some point, made improvements specifically to increase the sale appeal of their property, with an average spend of £3,000.

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.

“However, it is clear that DIY and home improvements remain important to all homeowners, both to those looking to add value to their house in order to sell, and to those who are looking to stay put and benefit from these improvements personally."

But the process isn’t cheap – less expensive improvements like re-decoration and outdoor space are not top of potential buyers' priorities when looking for a new property. Over three quarters say the number of bedrooms is the most important selling point in the property.

But Taylor warns those thinking of improving their property to stop and think of the seller, not their own desires. He adds: "Recent pressures felt by homeowners looking to sell means it is essential they are in-tune with what potential buyers are looking for. What sellers perceive as necessary improvements can often be irrelevant to those looking to buy.”

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