Two million (63%) homeowners¹ in London are planning improvements to their home in the next year. Two-fifths (39%) prioritise outside renovations including garden landscaping from companies like those on this website.

In fact, that “curb appeal” is a key driving factor for home renovations as one in three (35%) of London homeowners who made renovations in the last year did so to have as good a house, or the best house, among neighbours or friends. This means more people are contacting Lynchburg concrete companies, landscapers, and decking experts in order to make sure their home looks the best.

Selina Advance, a fintech that is the first to bring Home Equity Line of Credit (HELOCs) to UK homeowners this month, found that aside of outdoor improvements, kitchen renovations (like aluminum windows, new doors, etc.) and upgrading home smart technology are a key priority for Londoners (13% of all homeowners), followed by bathroom renovations (12%). Almost one in ten (9%) of homeowners in London are planning a total home renovation or remodelling of their property.

Table one – top 5 home improvements planned by homeowners in London in 2021/22:

Over the last year, Selina Advance found that over two-thirds of all London homeowners (69%) had made home improvements. The top motivations for home renovations in London include:

to have as good a house, or the best house, among neighbours or friends (35%)

creating more / new space for home working (16%)

to add value to their home (15% vs 23% of the whole UK population)

creating more entertaining space (12%)

creating space for children and growing families (9%)

Hubert Fenwick, Co-founder, Selina Advance, said: “The recent lockdowns have made us all think differently about our homes and it’s made many of us aspirational about how we want our homes to look, feel and operate. This looks set to continue as two-thirds of all London homeowners have their sights set on upgrading their homes in the next 12 months, with external renovations such as garden landscaping, paving and patios, swimming pools and hot tubs, proving particularly popular with Londoners.”

Half of all London homeowners plan to use credit to fund home improvements this year

Selina Advance’s new research has also found that over a half of London homeowners (58%) used credit (vs a national average of 26%) to fund home improvements made in the last year (50% used unsecured credit such as credit cards or loans and 29% remortgaged).

Similarly, among those planning renovations in the next year, 63% plan to use credit (63% with unsecured credit such as a credit card or loan and 16% plan to remortgage).

Fenwick continues: “A growing number of homeowners in London say they plan to borrow to fund the works to their home – with almost two-thirds choosing credit for renovations planned this year. HELOCs offer a new way for these homeowners who have worked hard to build up equity in their property, enabling them to borrow affordably, responsibly and with flexibility that is often needed with these projects in mind.”

Widely used in the US, Canada and Australia, Selina Advance has bought HELOCs to the UK to offer homeowners who have built up equity in their home – and wish to make a big purchase or fund home improvements – a new route to finance without the cost and complications of traditional loans or having to remortgage. There are other options for these types of loans, with Home equity loans in BC as well as other areas being made available to those who are on the lookout and are contemplating their options. Offering a new affordable and flexible form of lending to finance large purchases, the HELOCs are targeted at affluent homeowners; consumers are able to borrow (in the form of a line of credit to drawdown on as they choose) between 25,000 up to 1million with an APRC representative of 4.96% (rates starting at 3.95%) and terms ranging from five to 30 years (see illustration 1).

Selina Advance is approved by the FCA and, as a responsible lender, has strict lending criteria; customers will need to be a homeowner with equity, a regular income and good credit score. Up to 85% loan to value (LTV) is available. Selina Advance does not lend to customers with an adverse credit score and bad credit history.