Almost two million families are undertaking home improvements because they can no longer afford to move.
According to new research from insurer LV=, a massive 14.25 million households have either carried out home improvements in the last six months or plan to complete them in the next 12 months, spending an average of £5,249 each.
Of these households, 14%, or 1.99 million, say they did so because moving homes at this time simply wasn’t affordable. A further 855 million (6%) cited concerns over the credit crunch as the reason for improving rather than moving.
The findings provide a stark illustration of how many families are feeling the pinch as the cost of living in the UK continues to soar.
Could be a blessing in disguise
Obviously it would be preferable to move on to something bigger and better, but sticking where you are and renovating can prove a great investment.
According to research from GM Money, home improvements can increase the value of a house by up to 12% - that works out to nearly £23,000 on the average UK house.
The research identified loft conversions as the biggest booster of your home’s value, followed by building an extra room (11% increase in value) and building a conservatory (7%).
Assuming you undertook all three of these projects, your home would be worth a whopping £54,922 more.
Top up your home’s value
"The current housing market means that more people are looking to improve their home rather than move,” says GE Money mortgage marketing head Gerry Bell.
“However, before embarking on any improvements, it pays to know which ones will add the most value to your property.
“Region, type of property and location are all factors which will determine which improvement is best for a particular property, with the creation of extra living space continuing to be the best value improvement."
Green innovation adds little value
Of the less drastic home improvements, installing central heating had the most significant impact on a home’s value, increasing it by 3.4% or £6,243.
New windows (2.9%), a new bathroom (2.8%) and redecorating all living rooms and bedrooms (2.6%) all increased value by a similar amount.
Interestingly, the research found that eco-friendly improvements have little impact on a property’s value. For example, installing solar panels only increased the average home’s value by 0.8%, or £1,469.
“Whilst we may be striving for an eco-friendly environment, estate agents still do not see energy saving improvements as generating hot profits,” says Bell.
