But most homeowners don't have a whole lot of spare cash lying around and, despite their long-term advantages, home improvements can require a large initial spend.
So, what are your options when looking for ways to fund building work, and could a home improvement loan be one?
Like other types of loans, a home improvement loan comes in two main guises; secured or unsecured.
An unsecured loan is a personal loan which allows you to borrow money over a number of years, normally at a fixed rate of interest, usually up to £25,000.
The rate you pay will depend on your personal circumstances, the amount you want to borrow and the length of time you want to pay the loan back over.
Beware low advertised rates - by law these only need to be given to 51% of successful applicants. Therefore, 49% of successful applicants are likely to be offered a more expensive rate.
If you want to borrow a larger amount, you may need to look to a secured loan.
If you're planning extensive renovations and are thinking of moving out while the work is in progress, you need to be aware of your insurer's rules.
Secured loans can allow you to borrow larger amounts and may give a more competitive interest rate, as your home guarantees repayments to the lender.
There is, of course, one major catch - a secured loan usually uses your home as security, so be aware that your home would be at risk if you fail to make repayments.
Also, as with unsecured personal loans, the advertised APR only needs to be offered to 51% of accepted applicants.