Loan News

Homeowners `opt to stay put and renovate`

4 August 2008

More homeowners are opting for home improvements over selling their property, according to a new report.

Research by Lloyds TSB Personal Loans has found some 55 per cent of estate agents have experienced sellers taking their property off the market to conduct renovations.

Meanwhile, the bank has reported a 19 per cent increase in personal loan applications for home improvement projects.

The survey also showed 59 per cent of homeowners who were looking to sell have put their plans on hold until the market improves.

Of those homeowners, half are planning to carry out some form of renovation.

David Wishart, director of personal loans at Lloyds TSB, said people can no longer sit back and expect the value of their property to increase.

He stated: "If you want to trade up and avoid substantially increasing your mortgage, you`ll need to add value to the house you`re currently in."

Elsewhere, Savills has warned until general economic conditions in the UK improve people are going to struggle when it comes to buying and selling property.