Big rise in UK home improvement financing

New research has shown that more homeowners than ever are taking out financing to improve their current homes instead of moving.

This research was produced by V12 Retail Finance and it reveals a big increase in loans for home improvements. The period from July to September saw lending of this kind rise by a remarkable 112% in comparison to the same three months in 2025. This made it the type of loan with the fastest growth across the entire lending portfolio for V12.

There are several factors within the UK property market that could be driving the decision to improve rather than move. One is the expense involving in moving house, while another is the fact that mortgage rates are high and the market is turbulent.

People also have lots of options when it comes to improvements. There are companies that provide extensions like conservatories or orangeries in Birmingham and other parts of the country. Alternatively, existing buildings can be upgraded or renovated.

Andrew Phillips is the V12 Retail Finance Managing Director. Speaking to Insight DIY, he said the growing popularity of home improvements was the big story of the year. He then added:

“For many households, improving an existing property is becoming a more attractive option than moving. That’s reflected in the significant growth we’re seeing in home improvement finance and the continued strength of sectors linked to the home.”

When compared to Q3 of 2024, finance for such improvements has nearly quadrupled. It now makes up roughly 7% of total lending via the V12 retail finance platform.