More homeowners taking on debt for improvements

Figures taken from Sainsbury`s loans book indicate as many as one in five loans are for home improvements in the UK - Britons are taking on debt and investing in their properties despite the challenging economic conditions.

Of the total value of UK personal loans approved by the supermarket bank in 2011, 20.2% was for home improvements. This is a small increase from 20.1% of the total value in 2010, although the average value of the loans has decreased from £8,827 in 2010 to £8,318 today.

There is a definite trend for British homeowners to `stay put` in their homes and make improvements, as confirmed by new research from the Royal Institution of Chartered Surveyors (RICS).

It questioned chartered surveyor estate agents and found that 48% believe the slow property market is prompting an `improve not move` mentality among homeowners. The trend is more prevalent in areas of the UK with a more depressed property market, such as Northern Ireland, where 75% of homeowners are `improving rather than moving`.

Sainsbury`s Finance estimates that in 2010, £3.2 billion of personal debt was taken on in the UK for home improvements alone.