Essential reading for retailers and suppliers in the home improvement market

Borrowing for home improvements on the rise

Published: 3 May 2019 - Fiona Garcia
 
 

The average home improvement loan has increased by 16% in 2019, with households in the South East borrowing more for home improvements than any other region in the first quarter of this year, whilst the East Midlands saw biggest spike in home improvement loans.

According to new data from Shawbrook Bank, the South East is the UK’s ‘DIY capital’, with households borrowing more for home improvements than anywhere else in the country during the first three months of 2019 and across the whole of 2018.

As much as 17% of Shawbrook Bank’s lending for home improvements went to borrowers in the South East in the three months to March, although this is down on the share for the whole of 2018 (21%). This is despite official figures reporting that house prices in the region increased by just 0.1% in the past year, with only London and the east of England experiencing lower growth.

Meanwhile, the East Midlands has seen the biggest spike in the first three months of the year compared to 2018, with the share of Shawbrook’s total lending for home improvement loans reaching 12% in Q1 2019.

Notably, the East Midlands has also seen the largest increase in house prices of any English region over the past 12 months.

The most recent official figures from the Office of National Statistics show house prices in the region increased by 4.4% in the 12 months to January 2019.

Shawbrook Bank managing director Paul Went said households “are clearly looking to maximise the value of their home by carrying out home improvements”, regardless of whether house prices in their region are flat or increasing.

Analysis of Shawbrook’s loan data shows the average size of a home improvement loan has increased by 16% when comparing the first quarter of 2019 with the same period for 2018.

The increase in the amount of money Shawbrook’s Personal Loan customers are borrowing to renovate their homes could be due to changes in the value of the pound. Since the EU referendum in 2016 the value of sterling has fallen and therefore the cost of imported goods and raw materials has risen.

Although the cost of home improvements may be on the rise if construction firms are forced to pass on price increases to their clients, there is still value to be made from renovations that are well-planned.

 

Figure 1: Share of all home improvement lending by Shawbrook Bank

Top 10 UK regions

Q1 2019

2018 (12 months)

South East

17%

21%

London

15%

15%

North West

13%

12%

East Midlands

12%

7%

Scotland

10%

9%

Yorkshire & Humber

9%

9%

West Midlands

7%

8%

North East

7%

4%

East Anglia

5%

4%

South West

4%

7%

Wales

1%

4%

 

 

 

Comments


(Your email address will not be published)
Already Registered?
Sign In
Not Yet Registered?
Register
Printable View E-mail Bookmark
*

What do you think?


Are we seeing a rise in consumers interested in smart home security?



Latest reader comments

re: Further Homebase closures ahead

Shaun Collorick
Cheltenham homebase has closing down signs outside, but not Gloucester homebase.... Yet!...

re: B&Q sales slide, as Screwfix decision to exit German market costs millions

B&Q bob
No surprises from us on the shopfloor management paralysed by fear of jobs and to weak to take chances so bumble around. Ranges boring, and ...

re: Further Homebase closures ahead

Miss l'a tesha gc Wilson
Please keep me updated regards all Store closures Thank you...

re: Graham Bell to head up B&Q as part of Kingfisher reshuffle

Peter Earl
I HOPE GRAHAM BELL THE NEW CEO OF B&Q GETS TO GRIPS OF THE COMPANY VERY SOON.MY WIFE WENT FROM SHADOXHURST TO GILLINGHAM TO GET SOME ...

re: Quick and easy wood treatment oil from Frogsuit

Helen
hi, I have some brand new teak garden furniture would the clear be suitable to keep the new look of the wood....

Most read stories