A slowdown in the UK housing market is set to add to the boom in DIY spending as people seek to improve their homes instead of moving, a study has said.

The popularity of home improvement programmes together with low interest rates has helped to increase spending on DIY, according to the research firm Datamonitor.

Last year the UK's DIY market was worth more than �23bn, and Britons borrowed �13.6bn to fund home improvements.

DIY is now the third most common reason for taking out a loan, and Datamonitor forecasts that lending for this purpose will reach �17.6bn by 2006.

Expanding market

Datamonitor said that the number of home improvement planning applications had risen by 11% during the first six months of 2002.

People living in the south of England are more likely to undertake a major home improvement than those in the north of England or Scotland.

Those in London and the south east of England also account for almost 40% of home improvement borrowing.

"Rapidly increasing house prices have been partially responsible (for the rise in borrowing), increasing homeowners' confidence to undertake expensive home improvement projects and reducing their intentions to move home in the near future," said the report's author Edward Ripley.

"Cheap finance and the increasing popularity of home improvement and DIY television shows have also boosted the market and will continue to do so over the next few years."

The study found that conservatories have now replaced garages as the most popular building project.

There is also a rising trend of turning a bedroom into a bathroom, and building en suite bathrooms.

In London, loft conversions are the most popular, reflecting the lack of space available to expand properties.