A record level of mortgage equity withdrawal is fuelling increased spending on home improvements, research by FPDSavills reveals.
Figures show that the average household is spending around £6,400 per annum modernising and repairing their home. This equates to a spend of over £300,000 over the 50 years of owning a property - double the average price of a house in the UK.
But the study shows less than a fifth of the equity withdrawn from housing is spent on major home improvements like loft conversions, extensions and cellar refurbishment, even though latest research shows the key to adding value to a property comes is by expanding space rather than giving the home a cosmetic makeover.
Simon Jones, director at Savills Private Finance, says: ''Most of what is spent goes into updating the internal cosmetics of the dwelling on items such as new kitchens, bathrooms and general redecoration.
“The chances are that you will sell your current property for a much higher value if you have spent money on expanding space rather than just redecorating in a style that may not appeal to others. We suggest that those who are remortgaging for home improvement purposes should think carefully before they go ahead and spend.''