Two-thirds of UK homeowners are dipping into savings or investments to pay for essential building work – while almost a quarter are forced to borrow or use credit, new research reveals.
The survey of over 1,200 homeowners, commissioned by Homeowners Alliance and the Federation of Master Builders (FMB), found 65% are using savings to fund vital repairs and upgrades, with more than a third (34%) of mortgage holders extending their borrowing even further to get the work done.
The findings expose the financial pressure on families tackling essential home improvements – not vanity projects, but work needed to keep their properties safe and habitable. More than a quarter (27%) are upgrading electrics, plumbing or heating systems, while 24% are fixing structural damage or disrepair.
Among mortgage holders, the strain is even greater:
- 14% increased their mortgage or remortgaged
- 10% turned to credit cards
- 9% used supplier financing
- 5% took out personal loans
Speaking about their rogue builder victim experience, a mother from Scotland who cannot send her son to university now that they have forked out thousands to a rogue builder said:
“Due to a rogue builder leaving our home in a state of disrepair we have had to employ new contractors at significant financial and emotional cost to ourselves. The repercussions of this mean our child is unable to attend the university of his choice as funds that were allocated to their education that we have been saving for 18 years have had to be used to repair our home. The devastation caused by this rogue trader is immeasurable and will have lasting consequences on our lives.
Just a quarter (24%) could afford to pay for building work from regular household income alone.
Brian Berry, CEO of the FMB, added:
"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 1 in 5 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 concluded:
"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."
