15 February 2018 – Two-thirds of brits overspend on a home-improvement project, with a fifth turning to loan companies to fund the excess. Research also reveals that two-thirds (65%) of us have overspent on a DIY/Home-Improvement project and it’s been too much for some as a fifth (18%) have resorted to borrowing money from a loan company to cover the excess cost. Over two thirds (68%) of us don’t always set out a budget in the first place, the reason for the overspend. DIY-loving Brits are overspending on DIY and home improvement projects by £307, equating to a staggering £3bn nationwide
New research by Rated People, an online marketplace connecting homeowners with tradespeople, shows that since the huge surge in DIY shows on TV, Brits have been inspired to carry out their very own home improvement tasks to spruce up their own homes. In fact, 10 million people carried out a DIY/home improvement task last year.
The new research out today reveals that two-thirds (65%) of Brits have overspent on a DIY/home-improvement project. The average DIYer overspends by an average of £307, equating to a massive £3bn in overspent home-improvement projects. Furthermore, the overspend has been too much for some, with a quarter (25%) having to rely on borrowing money from friends and a fifth (18%) resorting to taking out a loan to cover the excess cost!
The research has found that two thirds (68%) of us do not set any kind of budget for projects that are likely to cost more than £100. With costs rising above expectations, 31% of us have had to put a home improvement project on hold, with just under half (46%) admitting this is mainly due to materials being more expensive than expected. Almost a fifth (18%) have had to put a complete stop to a project due to money completely running out.
It seems that when people do try and set a budget, they still get carried away as only a fifth (21%) remain within budget. 10% of people completely blow the budget out of the park and two thirds (66%) end up having to dip into their savings or ‘rainy day’ funds for the additional costs to complete the project.
To help people understand the true cost of home improvement and to help easily set a budget, Rated People has launched a series of online cost guides. These go beyond actual figures to explain the work costs, what it does is help Brits gage whether they have been quoted a fair price for their project.
Celia Francis, CEO of Rated People says, “The price of home improvement and repair work can be a pain point for both homeowners and tradespeople. Our cost guides help homeowners understand what they are paying for with work and what might drive a price up or down, allowing them to go into a project with more confidence.”
Builder and TV presenter of Ground Force, Tommy Walsh, says, “Not properly budgeting for a home-improvement project is one of the most common pitfalls many people fall into. It’s important that people budget properly for any DIY or home-improvement project – they can use an online cost guide to get an approximate amount of what a project is likely to cost, but they should then discuss this with a qualified tradesperson who will be able to provide a final cost. By not budgeting properly, people’s home-improvement projects often get delayed and, in some circumstances, get shelved altogether”