4th August 2014
With the housing market apparently cruising in fifth gear around a third of Britons are opting to boost their property’s value with home improvement projects, spending an average of £4,000.
But 10% of people are finding they are the victim, self inflicted or not, to DIY botch jobs with an average repair bill totaling £3,200. In some cases the price tag is actually double the original amount according to research from Lloyds Bank.
The survey found that more than half, at 54%, believe the cause of their problems was down to shoddy workmanship. In terms of what people are spending on their home improvements, the analysis found:
As such if the average cost at each level is compared to the average repair cost of £3,200, bad jobs at any level can add an additional 12% to 91% on top of homeowner’s initial outlay.
When the job is done correctly, the perceived value of some home improvements mirrors how much people spent on projects. For example 29% of the total number of homeowners who carried out work believed they had added £10,001 to £25,000 to the value of their home. This is compared to 31% of the total number of homeowners who said it had cost them the same amount to complete the project.
However a high number of people buy properties cheaper with the view to renovate to add value. In fact Lloyds found that some six million of Britons buy under budget, with 25% of those intending to extend or convert their property to add value in the future. In the current market, nearly half buy properties with the view of moving when they can afford something better.
Marc Page, mortgages director at Lloyds Bank, says: “Most homeowners will dabble with home improvements at some stage, whether it’s a DIY project or a major construction. What’s important is to ensure the job is done to a high standard as botched job can be quite costly to rectify. Although the reasons for home improvements may differ from person to person, making a house a home is a key motivator.”