Two-thirds of UK homeowners are using savings or investments to pay for essential building work, according to research from the Homeowners Alliance and the Federation of Master Builders.
The survey of more than 1,200 homeowners found that 65% are using savings to fund repairs and upgrades, while 24% are borrowing or using credit.
The research said the work being funded was often needed to keep homes safe and habitable, rather than for discretionary improvements.
It found that 27% of homeowners are upgrading electrics, plumbing or heating systems, while 24% are fixing structural damage or disrepair.
Among mortgage holders, 34% said they had extended borrowing to fund building work. This included 14% who increased their mortgage or remortgaged, 10% who used credit cards, 9% who used supplier financing and 5% who took out personal loans.
Just 24% said they could afford to pay for building work from regular household income alone.
A mother from Scotland, who said her family had been affected by 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.”
Brian Berry, chief executive of the FMB, said: “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 one in five 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, chief executive of the HOA, said: “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.”
