- 29
- Feb
An increasing number of homeowners are looking to improve their properties, a new study shows.
Research carried out by CreditExpert, Experian’s online credit report monitoring service, as part of its personal credit index reveals that the vast majority of Britons (91 per cent) plan to stay at the property that they presently own for at least the next six months. Of these consumers, it was claimed that many wish to increase the value of their home through renovation work. Young people appear to be particularly keen to carry out improvements on to their homes. Just under one in three (31 per cent) of homeowners between the ages of 25 and 34 state they are looking towards major renovation projects such as fitting a new kitchen or bathroom, adding a conservatory or a loft conversion. Overall, the average person wanting to improve their home is set to spend some 11,142 pounds on such an area over the course of the next six months.
For those consumers looking for a cost-effective way in which to finance any renovations, taking out a home improvement loan could prove to be of assistance.
Research by the online credit provider comes as the nation’s financial confidence is shown to be falling. Over the last three months, such a score was indicated as falling by two points to 96 - a “marked low”. Almost one in ten (eight per cent) of people questioned claimed that they are currently worried about their capacity to meet demands for payment on bills and debts. Those living in the north of England seem to be particularly concerned about money, as optimism in this part of Britain is three points below the nationwide average.
However, it is not all bad news for Britons as 44 per cent of homeowners from the north think that the value of their property has increased over the last six months. Meanwhile about half (49 per cent) of southerners state their house has gone up in worth during this period of time. Overall, 40 per cent of homeowners throughout the country believe their home is of greater value now than it was half a year ago.
Commenting on the figures, Darryl Bowman, director of CreditExpert, said: “With consumer confidence in borrowing dropping two points in the last quarter amidst concerns of an economic downturn, it’s understandable that people are feeling that homeownership is out of their grasp or that they should be ploughing money into home improvements rather than moving. Whatever your financial aspirations, making sure your credit report is in the best possible shape is crucial to allow you to be judged fairly by lenders and to be able to extend the amount you can responsibly borrow - particularly in the current credit cautious climate.”
He added that no matter whether homeowners are looking to improve their property or move into new accommodation, they should take out a copy of their credit report. Getting a copy of such a financial document, Mr Bowman reported, could be a vital step for people getting to grips with reviewing their money.
Upon obtaining their financial history those looking to carry out renovation work in their house may wish to apply for a homeowner loan. By taking out this type of loan it is possible that borrowers can afford to purchase the materials and hire the professionals required to create the home of their dreams. Possible areas of the home consumers may wish to develop may include getting a new bathroom or kitchen or refurbishing a garden.
Earlier research carried out by Halifax Home Insurance indicated that 2.9 million rooms have been knocked down during the last five years in attempts by homeowners to increase the amount of open space they have within their homes. Meanwhile, a further 2.2 million rooms are to be renovated as 2008 progresses.
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