New research has revealed a quarter of British homeowners are planning to plough money back into their property by embarking on substantial home improvements this year.

With house prices lower than they have been in several years, Unbiased.co.uk has found that homeowners are determined to beat the slump by improving the home they’re currently in. Over one in ten homeowners said they are saving up in order to cover the cost of their desired home improvements. A sixth of people are looking to make more space for their family, while 8% want to add value to their property.

But worryingly, 5% of younger people plan to finance their renovations through credit cards or unsecured loans. Nearly a third said they’d like to improve their home but simply wouldn’t be able to pay for it.

Unbiased.co.uk says: “As the housing market continues to show no solid signs of recovery, many consumers may be put off buying or selling a property. It is therefore encouraging to see not all homeowners are allowing themselves to be beaten by the downturn. Many are turning their attention to the house they’re in and planning substantial home improvements this year, which could potentially add both monetary and aesthetic value to a property.

“However, we would urge anyone planning to invest significant sums of money into their home to seek advice on how best to finance these renovations in the current climate. Those who are currently considering their options should seek professional advice from an independent financial adviser.”

SOURCE: Unbiased.co.uk, 29/04/09

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