Two million (63%) homeowners in London are planning home improvements over the next year, according to research carried out by the fintech Selina Advance.
The findings showed that two-fifths (39%) of London’s homeowners are prioritising outside renovations including garden landscaping, paving and driveways, or adding a pool or hot tub to their properties.
Nearly one in 10 homeowners (9%) said they are planning a total home renovation or remodelling of their property.
Selina Advance also found that, over the past year, more than two-thirds (69%) of London’s homeowners had already made improvements to their properties.
The main reason given for this by more than a third (35%) of respondents was to have “as good a house, or the best house, among neighbours or friends”.
Other reasons included to create more space for home working (16%) and to add to a property’s value (15%).
Selina Advance said that over half of London’s homeowners (58%) had used credit to fund home improvements over the past year. Half of those relied on unsecured credit either in the form of a credit card or loan, while just under a third said they had re-mortgaged to raise the necessary funds.
Going forward, about two-thirds (63%) of homeowners said they planned to use credit to pay for their improvements.
This month, Selina Advance claims to be the first company to bring Home Equity Line of Credit (HELOCs) to UK homeowners. Used in the US, Canada and Australia, HELOCs offer homeowners a flexible form of lending to finance large purchases.
Hubert Fenwick, co-founder of Selina Advance, said: “A growing number of homeowners in London say they plan to borrow to fund the works to their home, with almost two-thirds choosing credit for renovations planned this year.
“HELOCs offer a new way for these homeowners to borrow affordably, responsibly and with flexibility that is often needed with these projects in mind.”
