The lending market for home improvement has huge potential for growth, according to Datamonitor.
A new report, Home Improvement Lending, found lending for home improvement are being driven by the popularity of DIY and the start of a slowdown in the housing market.
Datamonitor forecasts £17.6bn will be advanced in personal loans this year to people undertaking such projects. With low interest rates and rising house prices, the market is expected to grow strongly over the next few years.
However, there are regional variations. Households in the South of England are more likely to undertake a major home improvement than their Northern counterparts. Although few Greater London households undertake major pro-jects in comparison to other regions, Greater London has experienced the greatest increase in the first six months of 2002, with home improvement planning applications up 42%. The total home improvement and DIY market was £23bn in 2001.