In figures released by Saga Home Insurance, a third of Britons enhancing their homes, such as by extending a kitchen or adding a conservatory, believe that this work will last less than five years, with a home improvement loan one way of meeting such costs. Findings from the insurance company also indicated that some 31 per cent of those who have had their houses refurbished in recent years have done so solely for cosmetic purposes.

Meanwhile, those over the age of 50 are the most likely to invest in home refurbishment projects that will last them over the long-term. Under a quarter (23 per cent) of people in this age group expect that they will have to replace such improvements within five years' time, compared to 41 per cent of those under 50.

Overall, bathrooms and bedrooms are the areas consumers most want to renovate, as more than a third (39 per cent) of respondents carried out work on these rooms over the past three years - with a competitively-priced home improvement loan one possible way of funding the costs for such a project. However, Scottish people appear to be more willing to spend their money on revamping their kitchen as 42 per cent of those living in the region have refurbished this room over recent years, in comparison to the 37 per cent who have had work done in their bathroom.

However, the company warned that unless they take the time to get cover or remind their insurance provider that they are looking to have work done, homeowners could find that they are coming under increasing financial pressure as they may discover that their policy is invalid.

And with two out if three people unaware that insurance firms may need advance notification of major improvement plans before work begins, such consumers could be particularly set for money management woes should they find that having an insufficient premium bars them from being able to make a claim. In addition, DIY enthusiasts were also urged to ensure that they have comprehensive home contents and building cover ahead of starting work. Should something they try and do incur an accident and consumers do not have insurance however, they could begin to develop difficulty in paying utility bills and loan payments as they may have to meet repair costs themselves.

Consequently, those looking to upgrade their homes could be well advised to consider applying for a low-rate loan. Speaking earlier this year, Richard Al-Dabbagh, senior personal loans manager for Alliance & Leicester, suggested that opting for such a personal loan to add extra space onto a property can be a much cheaper option than moving into a larger home. Mr Al-Dabbagh asserted that, despite facing higher monthly repayments in the short-term, taking out a personal loan can prove more competitive for consumers over the years than opting for a mortgage advance. His comments come after research from the financial services firm showed that having a loft conversion can add some 100,000 pounds on to the value of a house.