Home renovations will rise significantly this year, according to new statistics, with demand for tradies expected to experience an uplift as a result.
National Australia Bank (NAB) survey results showed 68 per cent of homeowners polled across the country are planning to upgrade their property over the next 12 months, with $25,000 the average spend.
Over half of respondents wanted to breathe new life into their kitchens and bathrooms, although general painting and decorating was also a popular home improvement. Adding value to a property and making a home more liveable were the most cited reasons for embarking on a renovation project.
The results are likely to come as good news for tradesmen, as NAB said demand for their services will rise as more people look to professional help to ensure jobs are completed properly.
Tradies may want to ensure their public liability insurance is up to date and fully comprehensive in anticipation of this jump in demand. While recent NSW Fair Trading research found the majority of homeowners are happy with work done on their home, there is still a risk of costly claims for property damage or personal injury when carrying out a renovation.
This is particularly true as homeowners are hoping to boost their property value to take advantage of improving conditions in the housing market.
Dean Pearson, NAB head of industry analysis, said 72 per cent of people have been putting off renovations in recent years due to financial constraints, but this will change in 2014.
"With house prices growing across most markets (with particularly strong growth in Sydney and Melbourne) homeowners are becoming more confident about investing in their single greatest asset," he explained.
"We've also seen that the number of people looking to build new homes rose sharply over the past year, which is great news for tradies as they will become a lot busier over the next 12 months."