One in five of all personal loans taken in the UK was used to pay solely for home improvements in the first half of 2010, according to new research from Sainsbury's Finance.
The figures show almost no decline from 2009 (20.7%) while, between 2007 and 2009, they reveal a 47% increase in the number of people using loans for home improvement purposes alone. The average value of a personal loan take out for home improvements has gone up 12% from £8,237 in 2009 to £9,225 in the first half of 2010.
Sainsbury's Finance 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.
Sainsbury's head of loans Steven Baillie 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."