Homeowners fear cost-of-living crisis will derail home improvement plans

As Bank Holiday weekend approaches, many households are likely to be planning home improvement or refurbishment projects, but new research shows lots are putting their projects in jeopardy before they even get started.

Research by the Chartered Institute of Building (CIOB) highlights how, despite three quarters of the people it surveyed being worried about the cost-of-living crisis affecting their home improvement projects, almost half (48%) don’t think having a written contract with their builder or tradesperson is essential*.  

Experts at CIOB say not having a contract means clients face potential misunderstandings over costs and project delivery, with expensive disputes much more likely to occur, ultimately putting their project at risk of being derailed.

 Making choices based on personal recommendations was the most popular way of selecting a builder or tradesperson amongst survey respondents, however only just under a third of people consider it a priority to also check a builder’s references, relevant qualifications or professional accreditation. Younger generations are more likely to turn to online directories or adverts in local publications than go on personal recommendation.

CIOB, the largest professional body for the construction sector, has published free online resources for homeowners planning home improvement projects including top tips, templates and blogs on how to get the best results. They can be found at Homeowner Clients | CIOB

Linda Stevens, head of client development at CIOB said: “Making good decisions from the outset on appointing a builder, budget setting and written contracts can be the difference between project success and failure. This is all more important than ever during a cost-of-living crisis when achieving value for money is a priority for most households. Making improvements to your home is exciting and it’s natural people just want to get going on their projects but taking time to do background checks, plan your budget and put contracts in place will go a long way to ensuring you get the best possible results, spend money wisely and have a beautiful home to show for your efforts.”

 CIOB top tips

• Set a realistic budget for your project that includes a contingency for any unexpected costs.
• Commit to sticking to budget and check at regular intervals that your project is in line with it. Avoid making last minute changes.
• Select a minimum of three builders and check their references, reviews and accreditation even if they have been recommended to you.
• Provide each builder with the same detailed information about your project and invite them to quote. Depending on your project you may need a professional to draw up plans and these should be shared with each builder to enable them to provide an accurate quote.
• When comparing quotes consider value to money. Cheapest is not always best and in many cases, you get what you pay for.
• Agree a written contract with your builder which covers payment terms, start and completion dates, materials, sub-contractors, security, health & safety, cleaning up and waste disposal. Online contract templates are available.
• The contract should commit the builder to return after completion to fix any issues or ‘snags’ you have discovered, such as cracked plaster or paint, before receiving the final payment.

 Jack Hounsham, Managing Director at Appledown Projects, a principal contracting company, said: “A professional contractor or builder will prefer their clients to be well informed about their project and have key success factors that are in black and white for all to understand and commit to from the outset. A written contract protects the contractor as well as the client so in all cases a professional, highly regarded contractor or builder will insist that such an agreement is in place.

“Spending money wisely is important, and I cannot stress enough the added value to a project of employing the services of high-quality construction professionals early on.

“Unfortunately an uninformed client will ultimately lead to an uninformed contractor and inevitable problems and misunderstandings will follow that can cause delays and subsequent cost increases, so it’s good to see CIOB providing advice to homeowners considering projects."

CIOB’s survey also found:

• Adding long-term value to a home and improving how it looks are the two main reasons for homeowners planning improvement projects
• Reducing the carbon footprint of the home is much more important to those under 24 (20% chose it as priority compared to the survey average of 9%)
• A higher percentage of women worry about the cost-of-living impacting home improvements than men (81% of women v 69% of men) 

*Survey of 2,000 UK adults, who own their own home and intend to undertake home improvements in the next 12 months, conducted in April 2024 by Opinion Matters for CIOB.