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According to the Evolution Money 2026 UK Home Improvements Report, two-thirds of the 2000 surveyed UK homeowners have delayed home improvements because they couldn’t afford them.
Internal Evolution Money data from January 2026 to July 2026 also shows demand for home improvement loans continues to grow.
Although inflation has eased from its 11.1% peak in 2022, higher prices have left many UK homeowners with less disposable income and reduced capacity to save. Meanwhile, house prices remain high, which makes moving home too expensive for many. These economic pressures are changing how homeowners invest in their properties, with many choosing to renovate rather than relocate.
To explore how these economic conditions are shaping home improvement decisions, Evolution Money combined nationally representative consumer research with internal lending data and analysis of average UK renovation costs. The study examines how homeowners are funding renovations, whether project costs are changing consumer behaviour, and why demand for home improvement finance continues to grow.
The findings reveal a widening gap between what homeowners have saved and what modern renovations actually cost. While many homeowners would rather improve their existing property than move, the cost of doing so is increasingly outpacing their ability to save, leading more people to delay projects or take out home improvement loans to bridge the shortfall.
The research found that 61% of homeowners would prefer to improve their existing home rather than move over the next five years, compared with just 19% who would choose to relocate.
Among those choosing renovation over relocation, the most common reasons were:
The findings reflect a growing trend towards investing in existing homes rather than entering an increasingly expensive housing market.
Although 50% of homeowners say they would use savings to pay for a major renovation, only 34% have actually built a dedicated home improvement fund.
Among those with savings:
| Amount saved | Share of respondents |
|---|---|
| Less than £5,000 | 46% |
| Less than £10,000 | 75% |
| More than £20,000 | 10% |
Yet homeowners believe they need substantially more to complete their ideal projects. The most common estimate for a dream renovation sits between £20,000 and £49,999, while 70% believe they’ll need at least £10,000.
This highlights a significant funding gap between what households have available and what modern renovations now cost.
Kerri Pender, Managing Director at Evolution Money, offers her advice on planning and saving for home improvement work:
“If you’re planning a renovation, it’s best to build a dedicated fund before work begins. While the amount you’ll need will depend on the scale of the project, having enough to comfortably cover your expected costs – and thinking about setting aside a contingency for unexpected expenses – could make a huge difference. Renovations, particularly in older properties, often uncover issues that simply aren’t visible until work is underway, so budgeting for the unexpected is just as important as budgeting for the project itself.”
The research compared homeowners’ savings with average UK renovation costs and found that many households could comfortably afford only relatively modest improvements.
Typical projects that could be completed with savings below £5,000 include:
However, many of the country’s most popular improvements now exceed this level of savings, including:
The findings demonstrate how even relatively common renovation projects are increasingly beyond the savings held by many households.
75% of homeowners say they would consider carrying out improvements specifically designed to reduce energy bills.
However, many energy-efficient upgrades require substantial upfront investment:
| Improvement | Average cost |
|---|---|
| New boiler | £6,017 |
| Solar panels | £7,187 |
| Air source heat pump | £9,125 |
| Underfloor heating | £9,570 |
For homeowners with less than £5,000 saved, these upgrades remain financially out of reach despite strong demand.
Kerri Pender says:
“For homeowners whose savings don’t quite stretch to larger improvements, the key is to have a realistic plan. That might mean tackling the work in phases, prioritising the upgrades that will have the biggest impact on your home’s comfort or energy efficiency, or considering finance as part of a carefully planned budget rather than a last resort. The most important thing is ensuring that any borrowing is affordable and supports a renovation that adds long-term value to your home and the way you live in it.
Improving your home’s energy efficiency is often a worthwhile investment, as you may save money in the long run by reducing your energy bills. Research shows that 34% of people who undertook home improvements in 2025 made green improvements, such as adding solar panels or insulation.”
Affordability is already affecting homeowners’ renovation plans.
Overall, 67% say they have delayed a home improvement because they couldn’t afford it, with 39% postponing multiple projects.
The most frequently delayed improvements include:
| Project | Delayed by | Average cost |
|---|---|---|
| Bathroom renovation | 36% | £5,725 |
| Kitchen renovation | 33% | £10,750 |
| Windows and doors | 30% | £8,925 |
| Roof renovation | 24% | £10,197 |
| Heating upgrades | 22% | £5,050 |
Notably, these projects generally fall within the £5,000-£11,000 price range, the bracket that exceeds the savings held by almost half of homeowners with dedicated renovation funds.
A recent study by Nationwide found that extensions and loft conversions increase property value by up to 24%, which means homeowners who have to delay their projects could lose out when it comes to selling their homes.
Evolution Money’s lending data suggests growing numbers of homeowners are turning to finance to complete large renovation projects.
Applications for home improvement loans increased by 7% between 2024 and 2025, while the number of approved loans has more than doubled since 2021.
Demand remains strongest for loans below £20,000, which account for almost three-quarters of applications. However, borrowing is steadily shifting towards larger loan values.
Applications between £20,000 and £29,999 grew by 13% year-on-year in 2025, making it the fastest-growing mainstream borrowing bracket.
Applications for loans above £100,000 increased by 29% year-on-year. However, this should be interpreted in the context of Evolution Money only recently introducing lending above £100,000, meaning comparisons with earlier periods are influenced by the expanded product range.
The average home improvement loan has increased dramatically over the past nine years.
Average approved loan values rose from £9,527 in 2016 to £21,005 in 2025 – an increase of 120.5%.
Meanwhile, Evolution Money’s total annual lending for home improvements increased from £5.5 million in 2016 to more than £24.1 million in 2025.
The average loan issued since 2022 stands at £20,409, closely matching the amount homeowners believe they need for their ideal renovation.
Borrowing has also remained concentrated among homeowners aged 35-54, who account for approximately 62% of all funded home improvement loans where age is known.
Kerri Pender concludes:
“Our research paints a clear picture of how the UK’s home improvement market is evolving. Homeowners still have a strong appetite to invest in their properties, but the financial landscape has changed considerably over the past few years. Rising inflation, higher material and labour costs, and the wider cost of living have all made it much harder for households to build the level of savings needed for major renovation projects. At the same time, moving home remains an expensive option for many, meaning more people are choosing to improve the homes they already have instead.
“That combination of factors is creating a growing funding gap. Our findings show that while many homeowners aspire to undertake larger renovations, the amount they’ve been able to save often falls well short of what those projects now cost. As a result, we’re seeing more homeowners carefully weighing up their options, whether that’s phasing work over a longer period, prioritising the improvements that matter most, or using finance to bridge the gap.
“The growth we’ve seen in both home improvement loan applications and average borrowing values reflects this changing behaviour. For many homeowners, finance has become an important way to carry out meaningful improvements without having to postpone their plans indefinitely or move house altogether. When used responsibly and as part of a well-planned budget, borrowing can help homeowners invest in projects that improve the comfort, energy efficiency and long-term value of their property.”
The data for this campaign was collected from 3 sources:
Here’s a more detailed breakdown of each method:
Survey methodology:
3rd party data methodology:
| Improvement |
Cost (£) |
|---|---|
| Double-storey extension (60m2) | £106,000 |
| Loft conversion (30m2) | £45,153 |
| Single-storey extension (20m2) | £37,000 |
| Whole house plumbing replacement (2 bed) | £14,750 |
| Garage conversion (16m2) | £13,875 |
| Conservatory (3.5m x 3.5m) | £12,680 |
| Basic kitchen renovation | £10,750 |
| New roof | £10,197 |
| Underfloor heating installation (96m2 house) | £9,570 |
| Air source heat pump | £9,125 |
| Replacement windows (3-bed house or 12 medium uVPC windows) | £8,925 |
| Solar panels (4kW photovoltaic (PV) system, suitable for a 2-3 bedroom house) | £7,187 |
| Patio (20m2) | £6,125 |
| New boiler (boiler & installation) | £6,017 |
| Rewiring (whole home – 3 bed) | £5,931 |
| Bathroom renovation (fitting excluding plumbing) | £5,725 |
| New driveway (60m2) | £5,550 |
| New flooring (96m2) | £5,330 |
| Central heating installation | £5,050 |
| Laying new turf (244m2 garden – UK average) | £4,473.33 |
| Painting/decorating whole house interior (96m2) | £3,553.75 |
| Decking installation (15 – 30m²) | £3,033.33 |
| Fitted wardrobes (3-door) | £2,833 |
| Downstairs bathroom installation | £2,474 |
| New staircase (average straight wooden staircase with pine banister) | £2,399 |
| Internal wall removal | £1,875 |
| Fencing (15m garden length) | £1,248.5 |
| EV charger installation (without a government grant) | £950 |
| Internal plastering (medium-sized room) | £923.75 |
| Tiling a bathroom (9m2) | £841.25 |
| New carpet (17.5m2) | £769 |
| Painting/decorating day rate | £225.5 |
Data caveats: every action was taken to attempt to standardise the data from the 4 sources. Each source priced the renovations slightly differently – for example, some included labour costs in their averages, whilst others didn’t. The sources also used various scales to achieve their averages. For example, whilst one based averages on a ‘three-storey house’, others would base it on the square footage. To attempt standardisation, the average size of various rooms, houses & gardens was assumed, as follows:
It’s important to note that all average prices and estimates and shouldn’t be seen as precise.
Internal Evolution Money data methodology:
The following data was supplied by the internal data team at Evolution Money Group:
Evolution Money’s lending range expanded in 2025 to include loans above £100,000. While this has contributed to an increase in average loan values, the underlying trend of larger borrowing amounts predates the product expansion, with average home improvement loan values more than doubling between 2016 and 2025.
It should also be taken into account that Evolution Money’s reporting systems underwent improvements in 2021 with the introduction of a new system.
All 2020 data should be viewed as an anomaly due to the COVID-19 pandemic.
Representative 21.82% APRC (Variable)
For a typical loan of £18,900 over 180 months with a variable interest rate of 18.72% per annum, your monthly repayments would be £335.99 for 179 months and then a final payment of £335.79. This includes a Product Fee of £1890.00 (10% of the loan amount) and a Lending Fee* of £763.00, bringing the total repayable amount to £60,478.00. Annual Interest Rates range between 8.6% to 27.87% (variable). Maximum 50.00% APRC. *Lending Fee varies by country: England & Wales £763, Scotland £1,051, Northern Ireland: £1,736.
Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured against it. If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
