NEARLY HALF OF HOMEOWNERS STRUGGLING TO AFFORD RENOVATIONS DUE TO INCREASED COST OF BUILDING MATERIALS – AVERAGE COST CLOSE TO £10,000
- 47% of homeowners are struggling to make home improvements due to the increased cost of building materials
- 54% of people have had to delay construction plans due to the increasing cost-of-living
- 65% cited painting as the most popular renovation, followed by decorating (61%), bathroom/kitchen remodelling (53%), and flooring/plastering (40%)
- 61% of homeowners are financing improvements with their own savings
New research from comparethemarket.com reveals that almost half (47%) of homeowners are struggling to afford home renovations due to the increased cost of building materials, with the cost of making home improvements averaging at £9,706. Younger homeowners aged between 25-34 years old are amongst those most impacted, with almost three-fifths (58%) struggling to afford renovations.
Painting is the most common type of renovation (65%). Decorating follows in second (61%), with bathroom/kitchen remodelling (53%) and flooring/plastering (40%) as other popular improvements.
38% of homeowners are currently in the process of renovating their home and 61% of people are using their savings to finance improvements; the highest proportion of homeowners choosing this form of payment are aged over-55 (69%).
However, data from the Department for Business, Energy and Industrial Strategy (BEIS) shows that, since 2015, the price of construction metals has increased by 36.8% on average, as of March 2022. The overall cost of construction works has risen by 49.8% over the same period, therefore many homeowners are finding it difficult to make renovations. Over half of homeowners (51%) have needed to delay their renovation plans due to the expensive cost of building materials and labour.
Alongside rising construction prices, the increasing cost-of-living is causing many homeowners to modify their renovation plans. 53% of people are opting to do the work themselves, as opposed to hiring a tradesperson because of increased living costs. Additionally, over half (54%) of people have had to delay works due to the ongoing cost-of-living crisis. 41% of homeowners who have needed to delay their renovation plans have instead prioritised spending money to help with their increased living costs, while 39% are saving up the money, rather than using it for home renovations, should they need to use it for future bills.
Alex Hasty, director at comparethemarket.com, said:
“Unfortunately, increased labour and building material costs come at a time when the cost-of-living continues to grow. As a result, many homeowners are delaying home improvements and are also deciding to do the work themselves to save money. While it is understandably a way of reducing costs, it is important to be aware that making renovations yourself could lead to both physical and/or insurance policy implications. Poor or faulty workmanship isn’t usually covered under a home insurance policy.
“You should always let your insurance provider know if you plan to make home improvements so they can assess the risk to the property and the potential extra value that could be added once the work is completed. If your home insurance premium does increase as a result, we recommend shopping around online to find a better deal. In addition to home insurance, households could shop around on other bills to save money and help offset the rising cost-of-living. For example, people could save £150 on average if they switch to the cheapest motor and home insurance providers ahead of their renewal.”
For more information on whether renovations impact home insurance policies, visit: https://www.comparethemarket.com/home-insurance/content/home-improvements/
Notes to editors
Censuswide survey on behalf of comparethemarket.com of 2,022 UK homeowners between 24-25 May 2022
comparethemarket.com was launched in 2006 and has grown rapidly over the past sixteen years to become one of the UK’s leading price comparison websites.
‘Average’ value calculated of cost of home improvements = mean value
Department for Business, Energy and Industrial Strategy (BEIS) Building materials and components statistics: April 2022. https://www.gov.uk/government/statistics/building-materials-and-components-statistics-april-2022
Motor and home insurance data is sourced from comparethemarket.com (January 2022 - March 22)
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