With pressures on the financial markets steadily increasing, those consumers who are considering renovating their existing property rather than moving house should make sure that their home improvement intentions do not leave a hole in their finances as well as a gap in the wall.

In the Property Makeover Price Guide released by Building Cost Information Service (BCIS) - which is a trading name of the Royal Institution of Chartered Surveyors - it was revealed that the typical cost of a home improvement project has gone up by a fifth during the last two years. Furthermore, BCIS showed that the cost of resecuring six roof tiles or slates has gone up by 17 per cent over the last two years. Meanwhile, a 3×5 m basement conversion was indicated as costing an average of 8,000 pounds in 2006. Now, such work stands at 10,000 pounds. It was also indicated that roofing work has increased by over a quarter during the past two years, with plumbing and electricity expenses posting growth of 22 per cent. Meanwhile, the cost of painting has gone up by 17 per cent.

Additionally the study showed that the cost of having the same work done will vary depending on its location within Britain. Those living in the north-west who want a 3×3 m single-storey extension carried out will find that it costs them an average of 19,320 pounds. However, for consumers resident in the Greater London area such a project would set them back 23,940 pounds.

For those consumers considering carrying out modifications to their home, whether it is tiling the bathroom, repainting a living room or adding a conservatory, obtaining a home improvement loan could be an advisable way in which to fund such projects.

The rise in home improvement costs was partially attributed to surging oil prices, which drives up the cost of transport. BCIS pointed to analyst predictions that the cost of a barrel of oil will reach the 100 pounds barrier in the years to come. Meanwhile, raw materials as a whole were indicated as becoming more expensive due to surging demand from emerging economies such as India and China. In addition, the incoming of “quality” tradespeople from the European Union was reported to have resulted in increased competition for labour causing costs to rise even further.

Joe Martin, executive director for BCIS, said: “The current downturn in the housing market is forcing some homeowners to become more creative in meeting their accommodation needs. Many are choosing to stay put and renovate or extend in order to upgrade their property rather than taking on more debt in a falling market. This can be a wise strategy as home improvements add value to a property and people will be well placed to take advantage of this uplift in value when the market shrugs off the current slump. Given that the cost of home improvements rose by 20 per cent over the past two years compared with only eight per cent in average wage growth, many homeowners are opting to act now rather than paying more further down the track.”

He went on to report that although financing any home improvement or repair work may be “costly”, for homeowners attempting to ascertain what a fair price they should be paying for such projects may also be challenging.

For those consumers looking for an effective means of financing property renovations obtaining a home improvement loan could be recommended. In taking out this kind of home loan, it is possible that borrowers can pay for materials required quickly, in addition to hiring qualified professionals to carry out the work. Such a homeowner loan may be of particular help after Cheshire Building Society recently advised consumers to make sure that they take steps to ensure the security of their property and belongings before going away on holiday.

By getting this type of loan it is possible that homeowners can afford the cost of installing safety lights, locks and gates.

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