46% of UK homeowners – 15 million people – are planning improvements to their home in the next year, rising to 55% for those with net assets of £250,000+, according to new research for Selina Advance.
22% prioritise outside renovations including garden landscaping, paving and driveways, or adding a pool or hot tub.
17% of homeowners who made renovations in the last year did so to have as good a house, or the best house, among neighbours or friends.
Selina Advance, which is bringing Home Equity Line of Credit (HELOCs) to UK homeowners this month, found that aside of outdoor improvements, bathroom renovations are a key priority for almost three million (9% of all homeowners), followed by kitchen extensions or renovations (6%). 1.3 million homeowners plan to upgrade their home’s smart technology and a further 4% plan to make their home more sustainable, for example with solar panels (rising to 14% and 10% among those aged 18-34 respectively).
Over the last year, Selina Advance found that 55% of all homeowners had made home improvements, rising to 75% of those aged 18-34 and 69% among those living in London. The top motivation was to add value to their home (23%), followed by creating more entertaining space (18%).
11% made improvements to enable home-working, rising to 16% of 35-54 year olds, and 8% wanted to create space for children and growing families (rising to 14% of 18-34 year olds).
Hubert Fenwick, co-founder, Selina Advance, said: “The recent lockdowns have made us all think differently about our homes and it’s made many of us aspirational about how we want our homes to look, feel and operate.This looks set to continue as a further 15 million Brits have their sights set on upgrading their homes in the next 12 months and many of these will benefit from using a HELOC which gives greater flexibility and affordability. You only pay for what you need, when you need it.”
Selina Advance’s new research has also found that more than a quarter of homeowners (26%) used credit to fund home improvements made in the last year (22% used unsecured credit such as credit cards or loans and 9% remortgaged), rising to 34% among those with net assets of £250,000+ (28% with unsecured credit such as cards and loans and 13% remortgaged).
Similarly, among those planning renovations in the next year, 35% plan to use credit (32% with unsecured credit such as a credit card or loan and 10% plan to remortgage). Among those with higher assets (£250,000+) 39% plan to use some form of credit (including 13% that plan to remortgage).
