Many homeowners in the UK have decided to carry out improvements and adaptations to their existing properties according to a recent report, and this is for a number of reasons. Some have found that they cannot sell their homes due to the current climate, some do not want to sell due to decreased values, and others cannot get additional finance to move on to a larger or more suitable property.

However, for those hoping to make their existing home more suitable there is bad news, as industry officials have stated that the cost of having work carried out on the home has rocketed over the past couple of years, with the average home improvement job now costing 20% more than in 2006, and some costing 25% more than two years ago.

The Royal Institute of Chartered Surveyors said: ‘No longer can homeowners pick and choose from the glut of quality EU tradesmen as the number of central and eastern European nationals returning to their native countries is on the rise. With half of the estimated one million British-based Poles having already left the UK, competition for labour is pushing up costs.'

It added: ‘The upward trend in oil prices is continuing to fuel the rising cost of transport, with forecasters predicting oil to rise to $200 per barrel in the next few years. Global demand for raw materials remains at an all-time high. With emerging giants such as China and India showing no signs of a slowdown, commodity prices will remain high for years to come. ‘This is no more evident than in the various trades where the cost of materials have pushed up the overall costs.'

Building society lending slumps

According to a recent report building society lending levels slumped in May, and industry officials predict that it could remain slow for some time, largely as a result of the slowing housing market. The data comes from the Building Societies Association, which shows that lending from building societies came to £125 million in May, which was a fall from £666 million in April.

The net lending levels from building societies in May amounted to just one tenth of the amount lent in May of last year. One official said: "The figures ... reflect the considerable adjustment in housing market activity now being experienced. We expect activity to remain at low levels for some time."

According to officials from building societies consumers are trying to save more money as a result of the turbulent financial markets, and a number of banks have also said that they have seen deposit levels rise as a result of consumers trying to save more money.

Building societies have stated that whilst the level of borrowing has fallen significantly over the past month, the deposits received at building societies have increased, as prudent savers try and get more money in savings in order to provide more financial security in the current uncertain financial markets.