One in five loans for home improvements

Britons are continuing to invest heavily in their homes despite continued reports of challenging economic conditions, according to Sainsbury's Finance.

The bank said that in the first half of 2010, one in five personal loans was taken out solely to pay for home improvements.

Spending on home improvements has held steady, showing almost no decline from last year, and from 2007 to 2009 the figures reveal a 47% increase in the number of people using their loans for home improvement purposes.

The average value of a personal loan taken out by the average improver has gone up 12% from £8,237 to £9,225 from 2009 to the first half of 2010.

The bank estimates that in 2009, the total value of personal loans taken out across the UK for home improvements alone was more than £3.2bn and says it is likely to be a similar figure this year if the current trend continues.

Steven Baillie, head of loans at Sainsbury's, said:

"Some recent reports indicate that many Britons are delaying buying major items at the moment, but our figures indicate that when it comes to our homes, improving them is the exception, perhaps because despite increasing positivity in the housing market, many may still be choosing to improve rather than move."