It estimates that in 2008, around 425,000 personal loans worth over £4 billion were taken out purely to pay for home improvements. This represents a 24% increase in the quantity of loans taken out for this purpose in 2007, and a 22% increase in the total value of loans.
In total £11.3 billion worth of loans were taken out partially or wholly to cover home improvements during 2008, spread across more than 1.1 million loans. This is 53% more loans than were taken out partially or wholly for home improvements during 2007.
Steven Baillie, head of loans at Sainsbury's said: "It is well-documented that the housing market struggled last year, and our figures might suggest that people have decided to stay put and make the most of their existing homes. It may also suggest however that they're trying to add value to their current homes in order to get a better price for them when the property market recovers.
"If people do decide that they need a loan to pay for their home improvements, they should make sure they look around for the best rates on the market, which could save them a considerable amount in repayments."
