Brits choose improving over moving

As concerns about the UK property market continue, home insurer LV= reveals that almost one million homes are being renovated or revamped over the coming 12 months rather than sold because owners are worried about the effects of the credit crunch.

The total cost of these renovations is estimated to be over £4 billion.

Despite purse strings tightening in other areas of spending, over half (57%) of all Brits have undertaken home improvements in the last six months or plan to complete them in the next 12 months.

6% attribute their investment in home improvements to a concern about the credit crunch, and 15% have made or are making improvements in an expectation of making money on their property when the housing market recovers. A further 14% admit to improving their home because moving at the current time just isn't affordable.

Emma Holyer, Spokesperson for LV= General Insurance said: "Despite the challenging housing market and lack of affordable mortgages, we are still a nation obsessed with our homes and what money we can make on them. Many homeowners told us they were spending this money so they could profit more on their homes when they do come to sell them after the market has stabilised. This shows that although people are concerned about the short term housing market there does appear to be optimism in the long term."

Of all home improvements undertaken or planned in the next year, the most popular types of home improvements other than simple painting and decorating are:

5.6 million (39%) improving floors (carpets, tiling or sanding floors)
4.7 million (33%) refit the bathroom
4.1 million (29%) landscape the garden
4.1 million (29%) refit the kitchen
2.3 million (16%) install new windows

The research found that many homeowners are planning to do the work themselves - possibly to save money. 44% of people planning a new kitchen and 46% of those planning a bathroom said either them, or a member of their family, would be doing the work.

Clearly room is an issue for many homeowners: 6% of people are extending their homes and 4% are building loft conversions - leading to 1.5 million major building projects specifically commissioned to extend the space.

Emma Holyer added: "Anyone planning an extension or significant building work should inform their insurer and also check anyone they are employing to undertake the work is fully insured. On most occasions an extension or loft conversion will need some form of planning permission so you should call in the experts for advice and not be tempted to try and do the work yourself."

Homeowners in the South East of England spend the most on home improvements with an average cost of £6,333. Homeowners in Scotland and Northern Ireland committed to spending half that amount at £3,616.