Renovation could lead to remuneration, says CML

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Renovation could lead to remuneration, says CML

Fri 24th Nov 2006

Homeowners have been urged to renovate property in a move to guard against the predicted house price decline in the UK, the Council of Mortgage Lenders (CML) has said.

Over half of people who remortgage their home have then gone on to use the money to undertake renovations on their property, according to a recent survey conducted by the government.

The survey undertaken by the National Centre for Social Research for the Department of Communities and Local Government discovered that alongside home improvements, 29 per cent of homeowners were spending the money on paying of debts while 15 per cent purchased goods for their house.

Bernard Clarke, spokesperson for the CML, remarked: "We don't expect house prices to decline significantly in value, although we do think that they will level out. Presumably additional enhancements to a property will add further value anyway, so it would seem like it would be fairly well protected by the value of the property."

However, Mr Clarke warned that homeowners must be careful of devaluing their property during the process of renovating should they "do the wrong things" and he went on to state that it was a matter of personal preference when choosing what work to conduct.

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