Released on: August 6, 2008, 2:18 am
Press Release Author: Lloyds TSB
Industry: Financial
Press Release Summary: Lloyds TSB Personal Loans has revealed that UK estate agents are losing out as homeowners are taking their property off the market and loans for home improvement projects soar.
Press
Release Body: New research from Lloyds TSB Personal Loans has
revealed that over half (55 per cent) of estate agents nationwide have reported
an increase in homeowners taking their property off the market in favour of
making home improvements.
Lloyds TSB Personal Loans,
surveyed 500 UK estate agents and over 1000 home owners to understand how would-be
sellers are responding to the cooling housing market*. The research is published
as Lloyds TSB
revealed a 19 per cent, year on year increase in personal loan applications
for home improvement projects.
The findings reveal that three in five (59 per cent) homeowners who had been
looking to sell their property have put plans to move on hold due to rising
concerns over property prices. Half of those staying put are opting to renovate
their existing property instead.
Fifty five per cent plan to undertake improvements to boost chances of a sale
in the current less buoyant market. However, almost a quarter (23 per cent)
admit they are adapting their property to accommodate changing lifestyle needs
and are keen to recoup any potential fall in house prices by adding long term
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."
TV presenter and property finder, Phil Spencer, commented on
the research: “The current cooling of the property market is making
homeowners think twice about selling up and many are opting to improve instead.
In a buoyant market, people taking on a home improvement project could get away
with less than perfect preparation or some slapdash sums, as their mistakes
were covered by rising property prices. However, in today’s environment
it is vital you plan any project thoroughly to ensure maximum return on investment.”
Lloyds TSB quizzed both estate agents and homeowners on the
features most likely to help a property sell in the current climate. The findings
reveal the top improvements likely to appeal to buyers are:
New kitchen (79%)
New bathroom (59%)
Extension (47%)
Loft conversion (29%)
Re-decorate (25%)
David Wishart continued: “Whether the motivation
is a quick sale, adding long term value or accommodating changing lifestyle
needs, it’s vital homeowners consider the financial investment they’re
about to make. A personal loan can provide a hassle free, affordable way of
spreading the cost.”
To help homeowners add value to their home Lloyds TSB personal loans
has teamed up with Phil Spencer to create the Move
or Improve Guide, offering practical advice and insider tips on
the do’s and don’ts of home improvement. An audio podcast and PDF
version of the guide is available to download free of charge.
Notes to editors:
* 1081 homeowners surveyed by Tickbox.net in June 2008. 500 UK estate agents surveyed by The Survey Shop in June 2008.
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