Lloyds TSB today said it had seen a near 20% jump in the number of people looking to borrow money to improve their home.
The bank said personal loan applications for home improvement work were 19% higher during the first six months of the year than they had been during the same period of 2007.
Research carried out by the group also found half of estate agents reported seeing an increase in the number of people taking their home off the market in order to carry out improvements.
At the same time, 59% of homeowners who said they had been considering moving have put their plans on hold due to the current market conditions, with half of these people saying they had decided to do work on their property instead.
Around 55% said they hoped the improvements would help them to sell their home despite the market downturn, while 23% said they were making changes to either enable them to continue living in their home or to boost its value.
David Wishart, director of personal loans at Lloyds TSB, said: ‘In recent months we have seen a significant increase in home improvement personal loan requests.
‘For the last decade homeowners have been able to sit back and rely on rising property prices to increase the equity in their home but sadly this is no longer possible.
‘If you want to trade up and avoid substantially increasing your mortgage, you’ll need to add value to the house you’re currently in.’
* Tickbox.net questioned 1,081 homeowners during June and The Survey Shop questioned 500 estate agents during June.
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