Trapped homeowners doing DIY on credit

British homeowners who are unable to sell their home are taking out loans and spending large amounts on credit cards to make improvements to their properties. According to research from price comparison website moneysupermarket.com, one in five Brits have borrowed money to fund home improvements, with the average resulting debt totalling £14,037.

The poll also revealed that 16 per cent of Brits planned to take advantage of April’s bank holiday weekends by embarking on some home improvements and a further one in five plan to take out a loan in the near future in order to make home adjustments.

Although some owners have no doubt caught the DIY bug, experts suggest that the slow property market has been a factor in many people’s decisions to launch into home-based projects and in turn borrow money.

Tim Moss, head of loans and debt at moneysupermarket, said: "Following the drop in house prices, many people may be left in negative equity and unable to sell their property. Therefore homeowners who had been looking to move may be forced to spend money to improve the value of their property, or simply make changes to ensure they can live happily in their home for an extended period.”

With the housing market remaining difficult due to lack of mortgage approvals combined with rising house prices, the outlook for those currently struggling to sell their homes is problematic. However, not all property owners have access to credit to improve their homes. For those who would prefer not to borrow or are unable to do so, or owners who are experiencing pressures which mean they require a quick sale, there are other options. Gateway Homes are specialist property buyers who offer homeowners quick sales on their properties, whatever the location or condition of their homes. If you think you may benefit from their help, take a look at their website at www.gateway-homes.co.uk.