New kitchen is most popular home renovation project in the UK

Installing a new kitchen is the most popular home renovation carried out in the UK in the last three years and the top improvement planned for the future as well, new research reveals.

The next most popular was a new bathroom at 41% followed by a new boiler or central hearing at 31%. Some 18% said they had splashed out on an extension, some 11% gave their garden a makeover, 11% knocked through rooms to create more space, 8% installed solar panels and 6% went for an attic conversion.

The research, commissioned by comparison website Gocompare, also shows that 4% added an extra bedroom and 2% undertook a cellar conversion.

But 43% of home owners who undertook major home improvements in the last three years didn't inform their home insurance provider of the changes they had made, potentially invalidating their home insurance.

‘Undertaking a home renovation or extension not only helps to improve or increase your living space, but can add to the value of your property and your fixtures and fittings.  For example, new kitchen cabinets and worktops are usually installed around a new cooker and other domestic appliances, increasing both the value of the property's rebuilding costs and household contents,’ said the firm’s home insurance spokesperson, Mark Greening.

‘So, whether you are planning an extension, installing a new kitchen or other major renovation, you should consult your home insurer before you start work so that you can review your sum insured and make sure your plans don't invalidate your cover,’ he pointed out.

‘Buildings insurance covers the cost of damage to the structure of your home, including permanent fixtures and fittings such as built-in kitchens and bathroom suites, from unforeseen events such as fire or theft.  Premiums are partly based on the cost of rebuilding the structure of your property, so your insurer will want to know about any renovations which affect the value of your home,’ he explained.

‘In addition to thinking about the aesthetics of your renovation, you should consider whether you can improve your home's security. Most insurers offer discounts for properties fitted with good quality door and window locks and burglar alarms,’ he added.

He also said that those planning extensive renovations and thinking of moving out while the work is in progress need to be aware of your insurer's rules regarding unoccupied properties. Most household insurance policies stipulate that if you leave your home unoccupied for a period of time, typically exceeding 30 or 60 days, then your property will not be covered for certain events including theft, malicious damage and escape of water.
 
‘There is no standard definition of occupied and the time period on some policies is as short as 14 days, so if you plan to move out during refurbishment works, then it is essential that you talk to your insurer to make sure you understand the implications,’ said Greening.

‘If you are employing tradesmen to undertake the work for you, check that they are qualified to carry out the work and registered with a recognised governing body. Most home insurance policies do not cover tradesmen or their work, so you should also check that they have their own insurance in place,’ he added.

Meanwhile, despite Energy Minister Greg Barker’s announcement that householders could get paid hundreds of pounds a year for heat generated by solar panels, purchasing homes with them can stop buyers obtaining a mortgage if the roof has been 'rented' to a utility supplier, it is claimed.

There are almost 300,000 homes in UK with solar panels which either can be owned outright by the householder or fitted and rented out to a utility supplier. If a householder opts to rent the roof space out to a green energy company it may cause a sale to falter, accordring to independent home finding company County Homesearch.
 
Stephen Wolfenden, local director for Oxfordshire, was recently asked to advise a client who was considering the purchase of a property with solar panels and several issues arose. 'The seller was receiving a positive revenue from the panels and saw it as a real benefit and something which would add value to the property, on the other hand ownership of the panels was unclear and my clients mortgage provider was unwilling to lend unless ownership was passed on to the purchaser,' he said.

'Often these panels are installed by solar companies for free who then sell extra energy generated back to the grid. These schemes are usually based on 25 year leases which require the approval of the mortgage lender,' he added.
 
The firm believes people should ask questions before buying a property with solar panels. These include whether or not the panels increase or decrease the value of a property for aesthetic reasons. For example, a Cotswold cottage with solar panels may well be a turn off and reduce its value while a modern town house with them maybe a plus and a revenue earner.

It also suggests finding out if the seller can confirm who owns the panels. If they have been put up and owned by a power company on a 25 year lease that may be a problem as lenders may be reluctant to lend on that basis. A legal transfer of ownership may need to take place.

Also is is worth realising that having solar panels on the roof, which are very heavy, might undermine the roof’s structure and it’s advisable to inform the insurance company that they have been installed.