Many 'improving not moving'

Almost one million homes are being renovated over the coming 12 months rather than sold because owners are worried about the effects of the credit crunch, research reveals.

Despite belt tightening in other areas of spending, over half (57 per cent) of all Brits have undertaken home improvements in the last six months or plan to complete them in the next 12 months, according to a survey from home insurer LV=.

Some 15 per cent said they have made or are making improvements in an expectation of making money on their property when the housing market recovers.

A further 14 per cent admit to improving their home because moving at the current time just isn't affordable, while six per cent attribute their investment in home improvements to a concern about the credit crunch.

Emma Holyer, spokesperson for LV= general insurance said: "Despite the challenging housing market and lack of affordable mortgages, we are still a nation obsessed with our homes and what money we can make on them.

"Many homeowners told us they were spending this money so they could profit more on their homes when they do come to sell them after the market has stabilised. This shows that although people are concerned about the short term housing market there does appear to be optimism in the long term."

Of all home improvements undertaken or planned in the next year, the most popular types of home improvements other than simple painting and decorating are: improving floors (39 per cent), refit the bathroom (33 per cent) landscape the garden (29 per cent), refit the kitchen (29 per cent) and install new windows (16 per cent).

A recent study from GE Money Home Lending found the best way to add value to a home is to add additional living space in the form of a loft extension, an extension or a conservatory.