Some 40 per cent of Britons take out credit when looking to renovate their property, new figures reveal.

According to research conducted by moneysupermarket.com, some two in five consumers use a home improvement loan or another form of borrowing to finance a property development project.

Head of mortgages Louise Cuming said: "It seems a large number of people are getting into debt to develop. No doubt, the thinking behind this is there will be a return on investment."

Ms Cuming added that those considering taking out credit, which could include a home improvement loan, should take the time to shop around for the most competitive deal possible.

The study revealed that 45 per cent of consumers believe home improvements could increase the value of their home.

Earlier this month, Andy Gray, head of mortgages for Woolwich, indicated that taking out a home improvement loan could make "a tangible difference" to the value of property.

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