Home Improvement Loan 'Could Boost Value Of Property'

Those consumers taking out a home improvement loan to fund renovation projects could substantially add to the value of their property, new figures indicate

Those consumers taking out a home improvement loan to fund renovation projects could substantially add to the value of their property, new figures indicate.

In research carried out by Halifax an ever-increasing number of consumers are looking towards home improvements, for instance redecorating or getting a kitchen extension, as a way of boosting the worth of their home. A reported 25 per cent of homeowners who have undertaken such a project over the last 12 months have done so specifically to increase the value of accommodation - up from the seven per cent recorded last year.

Meanwhile, 51 per cent believe that the outcome of their home improvement plans will add up to 5,000 pounds on to their property, as a third think that new furnishings will provide a boost of 10,000 pounds. One in five claim that work in the garden would put more than 10,000 pounds on top of house prices.

Commenting on the research, Patrick Sawdon, spokesperson for Halifax Valuers, said: "Our research shows that Britain has become a nation of movers and improvers. It's great to see that so many people are investing time and effort in improving their home. A word of caution though, poorly executed home improvements can actually detract from the value of your property. If you're considering embarking on major work, do consult the professionals and seek any necessary planning permission before getting started."

Overall, redecorating was shown to be the most popular home improvement option - accounting for 66 per cent. Gardening took up 41 per cent of consumer responses, followed by new furnishings and adding a new bathroom which stood at 30 and 24 per cent respectively.

The study also showed that 31 per cent of those surveyed "rely heavily" on their partner for help when working on their home. Meanwhile, 14 per cent turn to family members for such aid - and with 31 per cent looking for advice on how best to finance renovation work, taking one of the more competitively-priced home improvement loans could well be an advisable option.

A new kitchen was viewed by one in five respondents as the single improvement project which would add the most value to property, followed by adding an extension (14 per cent) and a loft conversion (eight per cent).

Research from the financial services firm also revealed that getting a competitively-priced home improvement loan could be a useful way in which to pay for labouring costs, as 35 per cent of those surveyed have called upon professional tradespeople to carry out work. However, younger people were revealed to be willing to get their hands dirty in projects as 68 per cent of 18 to 34-year-olds get involved in renovations. Halifax suggested that a rising number of first-time buyers are looking to boost the value of their home so as to help them sell the property at a premium and move up the housing ladder.

Consequently opting for a cheap personal loan could possibly be the most effective way in which to fund home improvement work. Earlier this year, Which? reported that those considering taking out such a loan should get a copy of their credit history with all three of Britain's credit reference agencies - Equifax, Experian and Call Credit. By doing so, the consumer watchdog claimed that borrowers will be able to identify any discrepancies on their file, which in turn could secure them a more competitive rate of interest on their personal loan.

About the author: Steve Smith writes for 1 Stop Finance Shop. A one stop shop for all your loan requirements, from payday loans, to secured personal homeowner loans, and UK tenant loans.