Monday, May 4, 2009
Category:
Home Improvements
Further to a new UK study conducted by AA Personal Loans, the company has revealed that a quarter of homes look set to become larger prior to the end of the recession.
This is the result of homeowners improving their properties ahead of their values.
It would appear that the needs of homeowners are now taking precedence over the resale value of their homes, by viewing them as just that – homes – as opposed to investments. This comes at a time when an average house price reduction of 10 percent has been recorded.
For 24 percent, their living space will be increased with the addition of an extra room. Of those that are intending to extend their home, 23 percent are doing so in order to create extra space for entertaining. However, for 15 percent, this new room will act as an office.
According to AA Personal Loans, virtually 5 million people have taken the decision to refrain from putting their house on the market amid the recession. To add to this, in excess of 6 million people will be carrying out home improvements during the course of the next 12 months. In relation to this, 57 percent of respondents explained that the reason behind the intended home improvements is to create a ‘nicer living environment’. In contrast, 32 percent are intending to make home improvements in an effort to add value to their property.
On a geographic basis, it would seem that homeowners in the South East are particularly inclined to increase the square footage of their property for entertainment purposes. In fact, 30 percent from Southampton, 33 percent from Brighton and 28 percent from London fall into this category. In a more northerly direction the attention turns to a desire for a greater number of bedrooms, with 49 percent of those in Leeds building an extension for this reason. This is also the case for 45 percent of those in Liverpool and 28 percent of those in Manchester. Scotland on the other hand is home to a significant proportion of property owners looking to build themselves offices. More specifically, 25 percent of homeowners in Glasgow, 22 percent of those in Aberdeen and 20 percent of those in Edinburgh can be classified as such.
Editor of Estate Agency Times, Mark Burgess, commented: "Even though the nation is collectively tightening its belt as the recession rolls on, it's not that surprising that many homeowners are bucking the trend by taking out home improvement loans to renovate their properties.
"Understandably some people might not be keen to take out a personal loan at the moment, but additional bedrooms or reception rooms typically add the most value to a property and both can easily serve as an office, something that will benefit many who are changing their working habits.
"Providing you are able to keep up with loan repayments, now is one of the best times to make home improvements. Not only are labour costs more competitive but extending a property during the downturn will not only add value long term but also make the property more comfortable for day to life."
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Property owners that have got
home improvements in mind, but do not currently have the finances required to set to work, could consider taking out a home improvement loan to fund the intended projects. One of many finance options available, a home improvement loan could pave the way to creating that perfect living space. This may be by means of an extension or conservatory, whereas for others a brand new office may be required. A home improvement loan could even finance a landscaped garden in preparation for long summer days.
