Homeowners are turning to DIY rather than trying to sell their property - and are using personal loans to fund the renovation work.
Mortgage approval numbers may have slumped, but the property market downturn has boosted demand for another form of credit according to new research.
Sainsbury's said that increasing numbers of homeowners were giving up on the property ladder in the downturn - and taking out personal loans to carry out renovations to their own houses instead. In all, a 53 percent increase in loans taken out to partially or wholly fund home improvements over 2008 was noted by the provider.
In total, £11.3 billion of credit was taken out for this purpose - spread over 1.1 million Sainsbury's loans.
Steven Baillie, head of loans at Sainsbury's, said: "It is well-documented that the housing market struggled last year, and our figures might suggest that people have decided to stay put and make the most of their existing homes. It may also suggest however that they're trying to add value to their current homes in order to get a better price for them when the property market recovers."
Figures from banks have suggested that mortgage approvals numbers have halved in the past year. House prices have also declined by over 15 percent over the 12 months, according to lenders.
