Home improvement finance costs 'to remain low'

Homeowners considering taking out finance to pay for a conservatory, loft conversion or other property upgrade might be pleased to hear the latest news from the Bank of England.

Its Money Policy Committee today (June 4th 2009) elected to keep the base rate of interest at 0.5 per cent, which may mean loan costs remain at a comparatively competitive level.

Commenting on the decision, Royal Institution of Chartered Surveyors chief economist Simon Rubinsohn said it was a predictable move, with "tentative signs" the low interest rate is helping the economy.

"We are seeing a modest improvement in sentiment in the housing market and the service sector, as well as less negative news from the high street," he explained.

Mr Rubinsohn said the Bank should continue its commitment to keeping the cost of lending as low as possible.

Those who do invest in a conservatory could see the value of their home increase by an average of over £7,000, according to a recent HSBC study.

Furthermore, adding a roof light and loft conversion could boost the price tag by over £13,000.