April - a time for home improvements

As the pace of economic recovery quickens, many homeowners will face the dilemma: ‘move or improve’?
 
But even though the housing market is gathering pace, new research by Populus for AA Financial Services shows that a third of those borrowing money this year intends to use it for home improvements.
 
The research, released during Home Improvement Month, shows that four out of ten want to make changes to their home this year.
 
Decorating is the most popular change which one in five would like to do and one in fourteen wants to revamp their garden. While these improvements are at the cheaper end of the scale, one in seven intends to make a more costly change such as installing a new kitchen or building an extension or conservatory.
 
Mark Huggins, Director of AA Financial Services said: “Improving a home is something a lot of people want to do but often can’t fulfil their ambition because they don’t have the funds available. Extensive work, such as building an extension could take a long time to save up for, which is why credit tends to be a popular option for such projects.
 
Personal loan rates are at an all-time low, which is prompting a rise in loan applications which many say is to do up their home.“Rates are typically lowest for personal loans of £7,500 and above,” Mr Huggins points out.
 
“Credit cards – particularly those which offer a money transfer facility – can also be a useful way to pay tradesmen as they have added protection in case anything goes wrong.
 
“Although carrying out home improvements can initially be expensive, the homeowner is likely to benefit in the longer term as the changes they make may well add value to the property and make it more attractive to potential buyers.”
 
Under 35s are most likely to borrow money to pay for home improvements.