Home improvers ‘failing to add value’ to properties

Many property owners who carry out home improvements fail to add any value to their houses, a report has revealed.

A study by HSBC has shown that completing work such as decorating, adding new bathrooms or re-carpeting can often cost more than the person recoups in added value.

This could lead to debt management issues if they have borrowed to fund the work.

Head of secured lending at the bank Martijn van der Heijden explained that the credit crunch has caused people to re-assess what factors actually create extra worth for a home.

“Today’s challenging housing market is making valuers reconsider previously held assumptions of what home improvements actually add,” he remarked.

Recently, research by Sainsbury’s Home Insurance found that 30 million UK adults have carried out DIY themselves over the past year rather than calling in a professional, in a bid to save cash.

But the company warned homeowners that they could incur costs if something goes wrong.

By Jamie Price