Home improvements and finding funding

If you're looking for a way to fill the current spate of rainy weekends, how about a spot of DIY? According to research by Halifax, more than half the population has undertaken some form of home improvements over the past 12 months, which is an increase of 12% on last year's figures.

Improvement motivations

When improving their home, an increasing number if people are motivated by the value it adds. According to the Halifax survey, a quarter (25%) of people cited this reason compared with just 7% last year. Likewise, more people are seeking to increase saleability of their property through home improvements; 16% compared with just 2% last year. Redecorating is still the nation's most popular home improvement, with garden improvements and re-vamping the kitchen also popular.

Phil Jenks, head of mortgages at Halifax, says: "Home improvements are becoming more popular with people looking to add value to their home and improve saleability. Whilst DIYers continue to favour the more simple home improvements, such as redecorating, there are also signs that people are beginning to view their gardens as an extension of their home and are investing more time and money in improving the outdoors as well as the indoors."

Adding value

Consumers and estate agents are divided on what kinds of improvements add value to a property. According to Alliance & Leicester estate agents are more likely to favour improvements that create space or improve decoration, whereas consumers are more likely to support 'leisure add-ons' such as garden makeovers or hot tubs. Nearly three quarters (70%) of estate agents say the best improvement to increase the value of your home is to add extra living space downstairs, yet only 50% of UK adults see the value of this work.

The next best alterations, say agents, are a new kitchen, an extra bedroom or study, or a garage. Meanwhile consumers reckon their property value will soar if they add a conservatory, revamp the garden or install a hot tub or swimming pool.

If you don't want your property's value to fall, steer clear of poorly-fittted kitchens which 65% of estate agents claim will have negative effect on it price. 'Loud' external decoration, polystyrene ceiling tiles and the removal of period features will also see your property's value fall according to agents. They also advise against patterned carpets, woodchip wallpaper and paving over the garden.

06 July 2007 © Moneyextra.com

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