Potential is money in the bank when it comes to houses — but finding the right project can be tough.

Francis Winstone-Partridge, of Chancellors, said: “Properties that are ripe for developing are far and few between.

“In the most prestigious areas of Oxford where people have been doing them up for years, they are in short supply.”

He suggests investing in a property that is not just in need of modernisation but is also on a plot with scope to extend.

He said: “People are always looking for somewhere that has potential to improve and make bigger.

“It is also important to set a realistic timescale. You can’t do a house up in five minutes and expect it to double in value. Look four or five years ahead.

“If you opt for central North Oxford or the better parts of Headington, you are buying in one of the most buoyant markets in the country and are always looking at a very sound investment.

“But if it is not such a good area, be aware there is a ceiling. No matter how much you do to the property, the location will limit its resale value.”

Chancellors is marketing two three-bedroom houses with potential to renovate and extend.

Carlton Road, in North Oxford, contains a 1930s semi that needs updating on a corner plot. It includes an open-plan sitting/ dining room, kitchen and garage.

Nearby, in Harbord Road, Cutteslowe, is another semi with a sitting room, dining room, conservatory, kitchen and garage.

Carlton Road has a guide price of £550,000 and Harbord Road £450,000. For more information on either property, contact Chancellors on 01865 516161 or visit chancellors.co.uk Another house with potential is 120 Kingston Road in Walton Manor, a Grade-II listed, two/three-bedroom house which needs major refurbishment and could be extended at the back and into the loft.

Number 120 Kingston Road is on the market for a guide price of £500,000. For more information, contact Breckon & Breckon on 01865 310300, or visit breckon.co.uk