Home insurance provider, Sainsbury’s Home Insurance has found that the slower housing market may be having a direct impact on the nation's plans to make the most of where they currently live as a fifth (21 per cent) of British homeowners plan to undertake major structural changes to their properties in the next 12 months.
Redecorating has been said to be a productive and price effective way of increasing the value of a home. With the present conditions of the credit crunch affecting the housing market, every little helps, when it comes to increasing a home’s value.
The bank's new research puts the average amount to be spent per household at £17,361; although nearly a fifth (19 per cent) of those planning works intend to spend more than £20,000, 4 per cent plan to spend over £50,000 and 1 per cent, expect their works to cost between £100,001 and £200,000.
Sainsbury's Home Insurance warns that homeowners looking to undertake any structural changes that will increase the size of their property should inform their buildings insurer first in order to ensure that they are fully covered for the increased value of their home.
When questioned, a third (33 per cent) of people planning on carrying out structural works said that they were not aware that they had to inform their home buildings insurer before the works started.
Up to 5.3 million homeowners intend to undertake some sort of major structural work in the next 12 months. Of these, 1.3 million say they are planning on converting their loft or roof, 1.2 million will erect a conservatory and a further 950,000 are planning on a rear extension to their property.
Around 228,000 homeowners are planning on carrying out a basement excavation to create a new room, which is in line with a new trend that is emerging in city or town centres, where space is often at a premium.
Neil Laird, Home Insurance Manager, Sainsbury's Finance said: "In the current housing climate, creating extra space in your home is another option for those who have maybe decided to put their plans to move on hold. But, as buildings insurance premiums are calculated based on the type of house, for example the number of bedrooms it has, creating extra rooms can have an impact on your premium even if you have unlimited cover.
He added: "We want to make sure that homeowners are aware that they could be left underinsured or even invalidate their insurance entirely in the event of an incident during or after the works if they have not informed their insurer first."
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