Over 14 million people (44 per cent) have undertaken major work on their current property or plan to do so in the next year, research from Lloyds Banks has revealed.
Of those, almost 2 millions say they are doing so as they can’t afford to move house.
Those aged between 25 and 34 are most likely to undertake redevelopments in the next 12 months, with over a quarter (27 per cent) planning work. Within this age group, a further 30 per cent have already completed significant home improvements on their current property.
Keeping up appearances
Improving the look of the house is the most frequent reason for undertaking home improvements, with 40 per cent saying this was key driver.
This shows that carrying out work on the house is a decision that is predominantly made to make a house a home, rather than for financial gain.
However, a third (33 per cent) of respondents also said adding value was a reason for improvements, ahead of making improvements out of necessity, for example to accommodate their immediate family growing (22 per cent).
When it comes to looking at the function of the new space created by home improvements, creating additional living space is the main priority, with 60 per cent of respondents stating this as an average across England and Wales. New kitchens (40 per cent), bathrooms (30 per cent) and bedrooms (28 per cent) are the next priorities for home owners looking to improve.
Downsizing
Almost one in five (18 per cent), or nearly 6 million homeowners nationally, have previously bought smaller property than they would have liked as a result of rising house prices. In the South East, this figure rises to 21 per cent. Of those that did buy a smaller property than they would have liked, a quarter (25 per cent) did so with a view to extending or improving the property to add value, and a further 18 per cent did so to extend and meet their housing needs.
Marc Page, Lloyds Bank mortgages director, said: “With over 14 million of us opting to carry out large scale improvements, these kind of projects are seen by many as at the best way to make a house a home.
“Rising house prices are clearly having an impact, with almost one in five buying smaller properties than they would have liked. However, this is giving more people an opportunity to undertake home improvements, whether they are trying to maximise the value of their property, or even make it more sellable in future.”
Investment
Significant sums of money are also being spent to improve, with nearly a third (32 per cent) of homeowners spending between £10,000 and £25,000 on the necessary work. A further 22 per cent of people have spent between £5,000 and £10,000 and 13 per cent of respondents spent between £25,000 and £50,000.
These figures are strikingly similar in comparison to how much value people feel the improvements added to their property, showing people felt that the amount they invested was similar to the amount of value it added.
- 20 per cent felt that their improvements added between £5,000 and £10,000.
- 29 per cent felt that their improvements added between £10,000 and £25,000.
- 13 per cent felt that their improvements added between £25,000 and £50,000.
