Home-improvements funded by savings

According a recent survey conducted by the National Home Improvement Show, 62 per cent of home-improvements in the UK are being funded by personal savings making cost control an issue which has become increasingly important.

Spokesperson for The National Home Improvement Show, Michael Holmes, editor-in-chief of Real Homes magazine and presenter of Channel 5's, I Own Britain's Best Home says: “Budgets are considered by many home-improvers as fluid things with the average extension or loft conversion project going over budget by as much as 30 per cent.

“As belts tighten and the ability to secure additional finance to pay for unexpected expenses remaining reduced, home-improvers need to be aware of how to stick to a budget and keep costs down.”

Michael suggests ten different ways to keep within a budget and reduce costs:

1. Invest in a good design
Effective design takes time and costs money and consequently far too many people set out on a renovation project without really planning exactly what they want, or getting accurate drawings. This is undoubtedly a false economy. A project can easily snowball once it starts. A more efficient approach is to spend a little more time and money working through all your options at the outset.

2. Cash is king
Offering to pay in cash shows that you mean business. It can work wonders when negotiating the cost of a job with a builder or subcontractor, or when trying to get a tradesperson to turn up on-site at short notice. Cash can also help to secure a discount when buying second-hand items such as salvaged materials or when buying in person. Be careful, as you’ll need to get some sort of receipt or paperwork so you have proof of payment.

3. Avoid false economies
Getting ripped off by cowboys can increase costs dramatically, so get references and check contractors out in person. This can apply as much to designers as it does to builders.

4. Keep it simple
The simpler the design of an extension, the cheaper it will be to build. A straight wall is the cheapest form and once you start introducing corners and complicated shapes, you will increase labour and materials.

5. Measure twice, cut once
Getting material quantities right is critical. Having too much creates unnecessary waste, while having too little can mean having to pay another full delivery charge for a tiny order. Worse still, the extra materials you order may take a long time to come, delaying your project, and could be from a different batch. Always ask suppliers to help you establish quantities from your plan and specifications including an allowance for wastage. Additionally ask your trades people for their independent view.

6. Shop around and negotiate
To get the best prices from suppliers, you need to negotiate every time you place an order and compare prices from lots of different suppliers.

7. Borrow cost effectively
If you need to borrow money to fund your home improvement project, shop around. A personal loan is likely to be the easiest and most flexible way to borrow. Though if you have the equity in your home to justify increasing your mortgage, this can be even better. The limiting factor will be having sufficient income and enough value in your home to offer as security to meet lenders’ criteria.

For larger projects, it’s worth establishing credit accounts with builder’s merchants. Additionally, make sure you look into VAT savings.

8. Use standard size fittings
Everything from windows and doors to staircases and shower trays come in standard sizes that are available off the shelf. So to save money, make sure you design your project around these sizes. If you use all or mostly all standard sizes, you will find many of the big manufacturers have a product that will fit. This means you can easily shop around for the best prices and take advantage of the various bargain deals on offer in this climate.

9. Phase the whole project
If your ambitions are bigger than your budget, plan your project in stages. For instance, if you want an extension on a budget, you could buy the whole exterior, but only complete the interiors on the ground floor and leave the first floor or loft space to be finished later. The key is to get services such as wiring and plumbing in place before plaster or decorative finishes have been added.

10. Go back to brick
If you are completely renovating an old flat or house which has been empty for some time, it can be more cost effective to gut the place and start again from a shell rather than try to solve patches of damp and rip out the old wiring and plumbing. It is all but impossible to really solve damp any other way and you never get a great finish patching up badly damaged plaster on walls and ceilings.

The National Home Improvement Show will take place at Earls Court, London from 2-4 October 2009.

For more information visit improveyourhomeshow.co.uk.