Homeowners have spent some £90 billion to convert parts of their property into extra living space, it has been revealed.

According to research by AA, some 20 per cent of Britons have renovated their homes in an attempt to create more room and increase the value of their property.

Head of home insurance Janet Pell said: "Many homeowners relish turning unused or ugly areas of their homes into liveable rooms as it means more space for family and less dusty boxes and clutter."

Meanwhile, taking out a competitively priced home improvement loan could be well advised with about half (43 per cent) of renovation projects costing less than £5,000.

The study also indicated that some 27 per cent of renovators say that upping their property value was the main factor for their decision as moving house becomes increasingly expensive.

Earlier this week figures released by moneysupermarket.com indicated that about 40 per cent of consumers take out a home improvement loan or another form of credit to help finance a renovation project.

Interfinancial providing you with breaking homeowner loan news.