Homeowners put off investing in structural changes

As the economic downturn takes its toll on house prices, the number of householders planning to invest in structural changes over the coming 12 months is down by 39% on 2008, according to research from Sainsbury’s Home Insurance.

However, this still means that up to 3.27 million (13%) of British homeowners intend to undertake some sort of major structural work on their home in the next 12 months.

Among those planning improvements, the three most common works planned are loft conversions (873,000), side extensions (653,000), and garage conversions (632,000).

Loft conversions were also the most widely planned structural change in 2008 (1.3 million), followed by building a conservatory (1.2 million) and adding a rear extension (950,000).

The average amount to be spent per household on structural changes over the next 12 months is £22,730. Of those planning works, one in three (34%) intends to spend more than £20,000, just 5% plan to spend over £50,000 and 3% expect their works to cost more than £100,000.

However, while the number of people planning structural changes to their home over the next 12 months has fallen compared with last year, the average amount of anticipated expenditure has actually increased by 31 from £17,361 in 2008.

Sainsbury’s Home Insurance is now warning that homeowners planning to make any structural changes to their property that they should inform their buildings insurer first in order to ensure that they are fully covered for the increased value of their.

Joanne Mallon, Sainsbury’s Home Insurance Manager, said:

“In the current housing climate, creating extra space in your home is another option for those who have maybe decided to put their plans to move on hold. Buildings insurance premiums are calculated based on a number of factors, such as the type of house or the number of bedrooms it has, so creating extra rooms can have an impact on your premium even if you have unlimited cover.”

“Homeowners should know that in the event of an incident happening during or after the works are completed they could be left underinsured or even invalidate their insurance entirely if they have not informed their insurer first.”