Extended dreams

The DIY and home improvement bug is set to reach epidemic proportions as growing numbers of UK homeowners set about making better use of the space they have by adding loft conversions, extensions or even basement rooms rather than risk losing money on a house sale. According to the Halifax Home Improvement Survey 2008, over a quarter (28%) of homeowners polled said that they planned to undertake home improvements by the spring of this year. Almost half (44%) believe these home improvements will add up to £5,000 to the value of their property, with more one in ten (12%) believing the increase will be between £10,000 to £25,000. For many Britons with growing families who can’t afford to buy a larger property, extending their existing home is a tempting solution. The flurry of new building works has also been further fuelled by the new government building planning legislation, which came into effect in October 2008. The new law allows loft conversions and rear extensions to be added to homes without owners having to seek planning permission. While this has given the green light to those dreaming of an additional bedroom or study, it is essential that homeowners still inform their buildings insurance provider and update their home insurance cover prior to starting work. As buildings insurance premiums are calculated based on the type of house – for example the number of bedrooms – creating extra rooms can have an impact on your premium even if you have unlimited cover. And before you pick up your hammer or power drill, you must be aware that you could be left underinsured or even invalidate your insurance policy entirely in the event of an incident during or after the works, if you have failed to inform your insurer first. And if you don’t have the makeover and canny property development skills of Lawrence Lleweyln‐Bowen or Sarah Beaney caution is the operative word! According to previous research in 2007 by Halifax Home Insurance, three quarters of a million Britons have wreaked havoc in their homes after trying to emulate ideas featured on home improvement TV shows. And at an average cost of £484 per time to rectify the damage, bungling Brits had to shell out over £350 million for repairs in 2007 alone. If you are planning to carry out work yourself, be realistic about your own knowledge and capabilities and make sure you have sufficient home insurance and contents insurance cover before you embark on any DIY work inside your home. And if you have decided to leave the hard work to the professionals, check that builders and contractors are suitably qualified to tackle the work you’re asking them to do. Plan carefully to ensure that your house extension is all you dreamt it could be – otherwise you could end up requiring a costly extension on your overdraft – to pay for the damage.