Brits 'use homeowner loans to improve property'
Published On 25 May 2007
Rising house prices and changes in demographic habits mean that more and more people in the UK are undertaking major conversion projects in their homes and using homeowner loans to finance the work.A study by AA Home Insurance found that British homeowners have spent £90 billion converting the 'dead space' in their homes in to new living areas.
Over half (52 per cent) of the converters said they had had work done on an attic. With this work typically costing £10,391, many people may have used a homeowner loan to finance the conversion.
The main reasons cited by people for the work was increasing their home's value (27 per cent) and making room for their adult children to live in (18 per cent).
"Many homeowners relish turning unused or ugly areas of their homes into liveable rooms as it means more space for family and less dusty boxes and clutter," explained Janet Pell, head of home insurance at AA Insurance.
"But it is important that you ensure you have the appropriate building regulations approval before going ahead."
A recent study suggested that a loft conversation can add around £100,000 to the value of a property, making it a sensible investment for a homeowner loan.
