Home Improvement Loans Continue To Increase In Popularity
Since the start of the credit crunch and economic slow down, causing house prices across the UK to fall significantly, many individuals who would otherwise have probably moved house, have made the decision to remain in their existing home instead.
This could be down to the fact that many people are either unable, or unwilling to take on a new and larger homeowner loan in the current economic climate, or have lost a high proportion of the equity in their existing home, due to falling prices and have chosen to wait until prices increase again in order to reduce their overall loan to value.
Instead of moving house, many people are now choosing to make improvements to their existing home and, in many cases, are taking out home improvement loans to cover the cost of the work. According to the latest property survey from the Halifax, on average homeowners are spending around £5,300 on improving their homes. Furthermore, more than 75 per cent of these home improvements are for the benefit of the current owners and family, rather than simply to increase the value of the house to make it more saleable, as most intend to remain in the same house for at least another two years.
Improvements range from simple decorations all the way through to new bathrooms and kitchens as well as larger projects such as loft conversions and extensions. Stephen Noakes from the Lloyds Banking Group commented on the change of attitude. He said “In the current housing market, many people have decided to stay put rather than move. Therefore it is no surprise that we have seen an increase in people adding space to their property to make it more suitable for their current lifestyle.”
