Over a fifth (21 per cent) of homeowners plan to make major structural changes to their home over the next year, a new study from Sainsbury's Bank has indicated.
The company notes that the slowdown in the property market might be having a marked effect on consumers plans to improve their homes, with many looking to boost their property value rather than go through all the bother of moving. It also seems consumers are willing to spend significant amounts of money to add equity to their current property, with an average house refurbishment spend of 17,361 pounds for those intending to make improvements.
Of those intending to start out on such projects 19 per cent of commented they intended to spend over 20,000 pounds. For those looking to discover a practical way to fund substantial property renovation, taking advantage of home improvement loan may be of help.
In choosing this sort of loan, people might discover they have the necessary capital to hire professional tradespeople to ensure the job is done properly, thus reducing the risk of making a home insurance claim.
Doing so might be a good recommendation to the one per cent of those that took part in the study who said they intended to spend between 100,000 and 200,000 pounds on major refurbishment and structural development to their house in next 12 months.
Regardless of overall spend, Sainsbury's strongly recommended all homeowners to check with their insurer before commencing work that will alter the structural layout of their property. The group reported that failing to do so could result in them invalidating their policy and being left without cover.
Results from the company indicate that as many as a third (33 per cent) were unaware of the fact that neglecting to do so could put them in such a position.
Neil Laird, home insurance manager at Sainsbury's Finance, said: "In the current housing climate, creating extra space in your home is another option for those who have maybe decided to put their plans to move on hold. But, as buildings insurance premiums are calculated based on the type of house, for example the number of bedrooms it has, creating extra rooms can have an impact on your premium even if you have unlimited cover.
"We want to make sure that homeowners are aware that they could be left underinsured or even invalidate their insurance entirely in the event of an incident during or after the works if they have not informed their insurer first."
In a breakdown of the work scheduled in British properties in the next 12 months, Sainsbury's Bank suggested that as many as 1,344,000 consumers seem to be planning a loft or roof conversion, while an additional 1,186,000 intend to build a conservatory. Rear extensions appear to be a priority for 949,000 and 713,000 want to build a garage extension.
For those requiring efficient ways to fund such structural overhauls, taking out a home improvement loan may provide an effective way to meet the costs of development.
An earlier report from Alliance & Leicester Personal Loans indicated that a lot Britons appear to be finding inspiration in DIY programmes such as Changing Rooms, Grand Designs and 60 Minute Makeover.
The group added that such projects can have more than an aesthetic impact on the property, with home renovations said to add as much as 10,000 pounds to the value of a property.
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