More homeowners in their 30s and 40s are considering upgrading or extending their homes as an alternative to moving, a bank has claimed.

Standard Life said that rising property costs meant that 75 per cent of people were put off moving with one third claiming they felt making improvements to their home could add value to their property.

Ashley Ramsay, trends expert at Standard Life, said: "Savvy homeowners appreciate that their property is a valuable asset and investing time, effort and money could be worthwhile."

Ms Ramsey added that more of the bank''s customers are looking for ways to finance their projects, with some considering using mortgage payments as a source of cash.

"With growing demands on lifestyles and personal finance, finding funds for renovation can be an issue. It is important to look at all the options available, however drawing down at low mortgage rates could be a cost effective option worth considering," she suggested.

Last week, the National Home Improvement Council warned homeowners that although they could add value to their property by making changes, they should be careful not to overstretch themselves by trying to do everything themselves if they are not comfortable they can manage.