Boost sale prospects

8:10am Monday 18th August 2008

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IN today’s financial climate, there is an extra reason for giving your home a makeover, as it will enhance your prospects of selling your property in the near future.

More than half (55 per cent) of estate agents nationwide have just reported an increase in homeowners taking their property off the market in favour of making home improvements.

Lloyds TSB Personal Loans surveyed 500 UK estate agents and more than 1,000 home owners, and the findings reveal that three in five (59 per cent) homeowners who had been looking to sell their property have put plans to move on hold, due to rising concerns over property prices. Half of those staying put are opting to renovate their existing property instead.

Fifty five per cent plan to undertake improvements to boost chances of a sale in today’s less buoyant market. However, almost a quarter (23 per cent) admit they are adapting their property to accommodate changing lifestyle needs, and are keen to recoup any potential fall in house prices by adding long term value.

David Wishart, director of personal loans at Lloyds TSB, said: “In recent months we have seen a significant increase in home improvement personal loan requests. For the last decade homeowners have been able to sit back and rely on rising property prices to increase the equity in their home, but sadly this is no longer possible. If you want to trade up and avoid substantially increasing your mortgage, you’ll need to add value to the house you’re currently in.

TV presenter and property finder, Phil Spencer, commented on the research: “The current cooling of the property market is making homeowners think twice about selling up, and many are opting to improve instead. In a buoyant market, people taking on a home improvement project could get away with less than perfect preparation or some slapdash sums, as their mistakes were covered by rising property prices. However, in today’s environment it is vital you plan any project thoroughly to ensure maximum return on investment.”

Lloyds TSB quizzed both estate agents and homeowners on the features most likely to help a property sell in the current climate.

The findings reveal the top improvements likely to appeal to buyers are: new kitchen (79 per cent), new bathroom (59 per cent), extension (47 per cent), loft conversion (29 per cent) and re-decorate (25 per cent),