A survey by the Homeowners Alliance and Federation of Master Builders (FMB) found that 65% use savings to fund repairs and upgrades, with over a third using mortgage borrowing to get the work done.
The survey said that much of the money was being used for essential work. More than a quarter (27%) are upgrading electrics, plumbing or heating systems, while 24% are fixing structural damage or disrepair.
Brian Berry, CEO of the FMB, said: “These aren’t luxury kitchen extensions. People are fixing dodgy electrics and crumbling walls because they have no choice.
“Homeowners are stretching themselves financially to make their homes safe – raiding pension pots, maxing out credit cards, and piling on more mortgage debt”.
Paula Higgins, CEO of the Homeowners Alliance, added: “Homeowners are doing the responsible thing by maintaining their properties, but many are stretching themselves financially amid rising mortgage costs, higher living expenses and stagnant wages. When people put this much on the line, the risk of being ripped off or left with substandard work becomes even more serious. Homeowners deserve better protection, and the government can deliver this by licensing builders.”
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The study found that among mortgage holders, 14% had increased their mortgage or remortgaged, 10% had turned to credit cards, 9% had used supplier financing and 5% had taken out personal loans for building work.
Just under a quarter – 24% – could afford to pay for building work from regular household income alone.
The news comes after a recent study from BuildLoan found that the average cost of renovating an uninhabitable home was around £70,000 – and higher for properties that have not been lived in for a significant period.
