NEW research has revealed that two-thirds of UK homeowners raid their savings or investments to pay for essential building work, while almost a quarter are forced to borrow or use credit.
The survey of over 1,200 homeowners carried by the Federation of Master Builders (FMB) and Homeowners Alliance (HOA), found 65% of homeowners are using savings to fund vital repairs and upgrades, with more than a third of mortgage holders extending their borrowing even further to get the work done.
The FMB said the findings expose the financial pressure on families tackling essential home improvements.
More than a quarter are upgrading electrics, plumbing or heating systems, while 24% are fixing structural damage or disrepair.
Among mortgage holders, the strain is even greater with 14% of respondents increasing their mortgage or remortgaging; 10% turning to credit cards; 9% using supplier financing; and 5% taking out personal loans.
Only 24% of respondents could afford to pay for building work from regular household income alone.
Brian Berry, CEO of the FMB, said, “Homeowners are stretching themselves financially to make their homes safe – raiding pension pots, maxing out credit cards, and piling on more mortgage debt. These aren’t luxury kitchen extensions. People are fixing dodgy electrics and crumbling walls because they have no choice.
“With one in five homeowners doing virtually no checks on a builder’s trading history or financial stability, they’re gambling with money they can’t afford to lose. When it goes wrong, families are left with unsafe work, empty bank accounts and nowhere to turn. Licensing small building companies has never been more important.”
Paula Higgins, CEO of the HOA, added, “Homeowners are doing the responsible thing by maintaining their properties, but many are stretching themselves financially amid rising mortgage costs, higher living expenses and stagnant wages. When people put this much on the line, the risk of being ripped off or left with substandard work becomes even more serious. Homeowners deserve better protection, and the government can deliver this by licensing builders.”
