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Some five per cent of homeowners rely on personal loans when it comes to home improvements, according to Halifax.

However, the group claims more people are using their savings, with 80 per cent of those questioned saying they had funded renovations using money set aside for a rainy day.

A further ten per cent said they used a credit card to pay for work on their property.

The younger generation seemed more open to the idea of using a loan to pay for home improvements, with 12 per cent of those aged 18 to 34 saying a loan had helped them renovate their house.

With 28 per cent of homeowners planning to carry out work on their house in the next few years, more people may find they benefit from taking out a loan.

A secured loan is often a cost-effective option for homeowners as interest rates are lower because your property is used as surety.