Property sale slump could mean surge in home improvement loan applications

July 30, 2008

According to a recent report the slump in property sales in parts of the UK could result in an increase in applications for home improvement loans, as homeowners resign themselves to the fact that they are not going to be able to sell their property – at least not at the price they might have expected for it – and decide instead to change the property to suit their needs and stay where they are. House sale figures have slumped over recent months, with estate agents suffering extremely poor sales figures.

Many potential buyers are nervous of entering the market at present because of the predictions about falling house prices, which could mean that property prices will fall after the purchase has been made. Many others are unable to get a mortgage to purchase a property in the current financial climate due to tight credit conditions. Both of these factors are seriously affecting house sales figures, leaving many homeowners unable to sell their properties.

With many homeowners looking to create more space it is thought that home improvement loan applications could go up as property sales figures come down. Some may decide to improve their home before selling to improve the value.

One industry official said: ‘Even within the current climate, there are still millions of people who are looking to move and they are doing all they can to get the best price for their property. However, it is clear that DIY and home improvements remain important to all homeowners, both to those looking to add value to their house in order to sell and to those looking to stay put and benefit from these improvements personally.’

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