Homeowners are choosing to renovate rather than relocate because of property prices, according to a new survey from Revolut.
In their latest report, the fintech – which has 2.8 million customers in Ireland – has identified a large increase in the amount its customers are spending on home improvement projects.
Revolut said it believes that rapidly rising house prices are discouraging homeowners from moving, prompting them to extend and improve their existing homes.
Statistics from the Central Statistics Office show that property prices shot up by more than 10% in the year to August.
The online bank’s research found that there was a 30% quarterly rise in payments to special trade contractors, with an additional 14% increase in masonry, stonework, and plastering costs, which it said points to a probable jump in the number of house extensions getting underway last month.
Revolut said that with an increased demand for work on home improvement projects, architectural firms and surveyors are proving the beneficiaries of people's need to renovate their homes. Spending on fees for these services rose 22% on a quarterly basis to mark an increase of 18% on this time last year.
Spending on carpentry contractors rose by 33%, while a 19% increase in plumbing and heating equipment suggests increasing workloads for these trades too, Revolut added.
Meanwhile, the amount spent at household appliance stores rose by 22%, while consumers spent 33% more on furnishings for their homes in Ireland compared to last September.
Maurice Murphy, Head of Lending - Europe at Revolut Bank UAB, said that during those big life events, such as moving or renovating a home, it's important for people to be able to trust their bank, get a great return on deposits, and have hassle-free access to credit when they need it.
"These spending patterns suggest that a growing number of our customers in Ireland are putting their money towards decorating, renovating, or extending their homes," he added.
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