Homeowners repair cost shortfall
The nation's homeowners will need to spend more than £17,000* on household emergencies during their lifetime in a property – but only put aside £2,700* to pay for them according to new research from Direct Line Home Response 24.
As 76 per cent of homeowners have no reserve funds to pay for emergency repairs despite it costing the typical homeowner more than £1,192* a year, they face a £15,000* shortfall in later years to come.
Those who have been faced with a repair bill that they couldn't readily afford (more than 66 per cent) have resorted to serious measures to cover the costs.
For example, almost one in 10 (nine per cent) have not paid other bills, and the same number have been forced to borrow money from friends or relatives. A further 14 per cent have considered re-mortgaging their property to fund necessary repairs.
British homeowners' lifestyles are also being affected as they are forced to make sacrifices to afford emergency repairs. 29 per cent have forgone personal luxuries such as DVDs, clothes and trips to the hairdresser, and more than a quarter (26 per cent) have been forced to socialise less often. Almost a fifth (19 per cent) have cancelled a holiday.
Kate Syred, Business Manager at Direct Line Home Response 24 Insurance, said:
"When the inevitable happens, many homeowners are unprepared financially to deal with a home emergency and so have to make large sacrifices to meet repair bills. To cushion the financial blow, homeowners should set aside a small amount each month to meet the cost of emergency repairs. For extra peace of mind homeowners should consider taking out insurance to cover themselves if the worst happens.
-ends-
For further information please contact:
Carmel McCarthy
Direct Line Press Office
Tel: 0845 878 2178
Email: carmel.mcCarthy@directline.com
Notes to editors
Research was conducted between 15 and 18 July 2005 by YouGov Plc who interviewed a sample of 2,338 individuals. The survey was carried out online. Results were weighted to be representative of the GB population.
Direct Line Insurance plc, authorised and regulated by the Financial Services Authority. Calls may be recorded. Conditions apply.
* Average length of tenure for homeowners is 15.0 years (Office of the Deputy Prime Minister, Household characteristics 2003). The research found that the mean spend on home repairs per annum is £1,192 at current prices and that the mean amount set aside for home repairs each year is £180.
15 x £1,192 = £17,880 total spend on emergency repairs during a homeowner's tenure
15 x £180 = £2,700 total set aside for emergency repairs during a homeowner's tenure
£17,880 – £2,700 = £15,180 shortfall
|
