More reasons to improve

Further evidence came to light today (February 27th) that it may be better to improve rather than move.

For the 17th month in a row, house values fell, bringing the average price of a UK property down to just £156,753.

The dire extent of the housing market is evident in todays Land Registry figures which show a 15.1 per cent year-on-year drop in house prices in January.

With the market just months away from entering its third year of turmoil, homeowners may consider ditching ideas of selling up and moving on and instead turn to home improvement to create the house of their dreams.

For some this will be adding a loft conversion for extra space while others may wish to get more creative with a bespoke glazed extension.

The market doesnt appear to be showing any signs of improving in the foreseeable future, according to Capital Economics property economist Seema Shah.

"The recession will deepen this year, triggering a further sharp rise in unemployment," she predicted.

"Accordingly, while the availability of mortgage credit may increase, weak buyer demand will prevent a housing market recovery from materialising."

For those who have already improved their home, the benefits may already be evident.

Home improvements can boost value as well as the practical usage of a property.

Capital Economics is an independent macroeconomic research consultancy and was established in 1999.