Homeowner loans 'could fund DIY projects'
Published On 11 June 2007
People in the UK use homeowner loans and other borrowing to finance DIY projects which they believe will add to the value of their property, a new report suggests.According to Halifax, 58 per cent of the UK population have carried out a DIY project in the last year.
Now 25 per cent of people said that they did the DIY work to add value to their property - last year just seven per cent carried out work for this reason.
People are most likely to use a homeowner loan to finance a redecoration project. This was what 66 per cent of people said their DIY project had been.
Roughly half (51 per cent) of the people who had carried out a DIY project had spent £2,500 on the work, but 11 per cent said their improvements had cost them over £10,000 - making a homeowner loan necessary in more cases.
"Home improvements are becoming more popular with people looking to add value to their home and improve saleability," explained Phil Jenks, head of mortgages at Halifax.
"Whilst DIYers continue to favour the more simple home improvements, such as redecorating, there are also signs that people are beginning to view their gardens as an extension of their home and are investing more time and money in improving the outdoors as well as the indoors.
Recently, GE Money found that using a homeowner loan to finance a loft conversion could add £45,000 to a property's value in London.
