More than half of homeowners are choosing to improve their property rather than move, a survey suggests, as mortgage rates and wider living costs bite.
Some 52% of 1,000 homeowners surveyed across the UK said they had either renovated over the past year or plan to do so in the next 12 months, according to research for the Compare the Market home insurance team.
The cost of moving, cost of living pressures, and emotional attachment to their current home were the top reasons for staying put, researchers found.
For younger homeowners aged 25 to 34, high mortgage rates were the biggest factor for staying put, with nearly three in 10 (29%) people in this age group citing this.
Homeowners living in Manchester, London and Edinburgh are the most likely to have picked a revamp over relocation – with those in Sheffield, Belfast and Liverpool being particularly inclined to move – the survey found.
New bathrooms, garden upgrades and kitchens are among the most common makeovers, the research indicated.
Energy efficiency upgrades and smart tech were also popular.
People are spending £15,987 typically on their renovation work, with nearly a third (29%) splashing out more than £20,000, according to the research, carried out in March by Censuswide.
Not all costs were planned, with nine in 10 (88%) saying they had encountered unexpected expenses during renovation work.
The most common unexpected cost was the price of materials (37%), while a quarter (25%) had to fix issues uncovered during the work, and more than a fifth (22%) had to pay tradespeople more than expected.
More than a fifth (22%) of people said they did not check their home insurance before carrying out work – rising to more than a third (37%) of homeowners aged 45 or over.
Anna McEntee, home insurance expert at Compare the Market, said: “Renovating instead of relocating can be a smart financial move, but it’s important to make sure your insurance reflects the changes you’ve made. And with so many homeowners encountering unexpected costs, the last thing you want is to find out you’re not properly insured.
“Even if the work is carried out professionally, projects that affect the structure, value or use of your home can impact your cover.
“Speak to your provider before getting started as they might consider having building work done as an extra risk to your home. And review your policy when the work is done, especially if the renovations have increased the value of your home or altered its layout.
“You need to make sure your policy still gives you sufficient cover as you don’t want to end up underinsured.”
The Bank of England will announce its latest base rate decision on Thursday, with some predictions that there could be a quarter-point cut, from 4.5% to 4.25%.
Several banks have launched more sub-4% mortgage rates onto the market in recent weeks or eased their lending assessments, which could make it easier for some borrowers to access deals.
However, stamp duty discounts have become less generous from April. Stamp duty applies in England and Northern Ireland.
Households have also had to endure “awful April”, during which various bills were hiked.
Figures released by the Bank of England last week showed that the number of mortgage approvals made to home buyers fell for the third month in a row in March, in signs of a slowdown as the stamp duty changes loomed.
The Bank of England said 64,300 mortgages for house purchases were approved in March. Approvals are an indicator of borrowing taking place in the future.
