Home owners who are unable to sell their properties are spending £30,000 on home improvements instead, funded by loans and credit cards.
New research suggests typically one in five home owners have taken out a loan to improve their home.
The average amount borrowed is £14,000, but in some areas the figure is more than double that amount.
Residents in the West Midlands spend the most at £30,000, while those in Scotland spend the least at just £6,000, according to the report by price comparison website Moneysupermarket.com.
Tim Moss, head of loans and debt at Moneysupermarket.com, said: “With the drop in house prices, many people may be left in negative equity and unable to sell their property. So homeowners who had been looking to move may be forced to spend money to improve the value of their property, or simply make changes to ensure they can live happily in their home for an extended period.”
He added: “It is no surprise people will turn to a loan or credit card to make the necessary adjustments to their homes.”
A home owner borrowing £14,000 will make regular monthly repayments on the loan of £275 a month, repaying a total of £16,500, the research revealed.
Source http://www.telegraph.co.uk/
Source http://www.telegraph.co.uk/
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