Home Improvement Loans Rise By 54%

More homeowners are renovating their properties instead of moving house these days, according to the latest research from Zopa.

The lender revealed its customers have borrowed more than £50 million already in 2016 to improve their residences.

This is a 54 per cent increase compared with the same five-month period in 2015, demonstrating the rise in homeowners getting help from tradesmen using steel rebars to fix their roofs, install a new kitchen, or add an extension.

Jaidev Janardana, chief executive office of Zopa, said: “Whilst renovating can seem pricey, it’s significantly less expensive and disruptive than moving house.”

The survey found that while home improvements add value to the property, nearly half of homeowners (47 per cent) do not have plans to move for at least ten years. Indeed, only eight per cent plan to sell up within 12 months, and just nine per cent think they will relocate in one to two years.

In fact, 73 per cent said they are not interested in whether their home improvements have increased the value of their property or not.

The most popular work homeowners borrowed money for was to renovate their kitchen (33.7 per cent), followed by general decorating (32.4 per cent) and updating their bathroom (23.7 per cent).

Among the top ten home improvements according to Zopa were getting work done on the roof, installing a conservatory, converting the loft, a new boiler and fixing windows.

This comes after Saga Home Insurance revealed homeowners over 50 typically spend £17,000 on home improvements.