The UK Home Improvements Report: How Much Are Homeowners Spending, Saving & Borrowing to Upgrade in 2026?
1. There is an obvious gap between how much a 'dream renovation' will cost & how much homeowners have saved up
The respondents were asked how they'd pay for a major home renovation tomorrow. 17% said they'd use their credit card whilst another 15% said they'd take out a loan. Half of the 2000 surveyed homeowners said they would use their savings to pay for a major renovation. However, when asked if they had dedicated savings set aside for home improvements, only 34% said yes.
The respondents were asked to estimate how much they'd need for their dream renovation - the most common estimated budget was £20k - £40k. However, when asked how much they had saved up for renovation projects, 75% of the participants had less than £10k in the pot.
The study looked into the cost of common renovation projects in 2026, using data from CheckaTrade, Ha Much, My Job Quote & My Builder. Here are some of the estimated prices, most of which are much more expensive than what the respondents said they had saved up:
| Improvement | Cost (£) |
|---|---|
| Bathroom renovation (excluding plumbing) | £5,725 |
| Loft conversion (30m2) | £45,153 |
| Single-storey extension (20m2) | £37,000 |
| Whole house plumbing replacement (2 bed) | £14,750 |
| Garage conversion (16m2) | £13,875 |
| Painting/decorating whole house interior (96m2) | £3,553 |
| Basic kitchen renovation | £10,750 |
| Conservatory (3.5m x 3.5m) | £12,680 |
| Replacement windows (3-bed house or 12 medium uPVC windows) | £8,925 |
| New driveway (60m2) | £5,550 |
* See the full list of 32 improvements on the on-site report
2. The UK's 'home improvement affordability gap' could be leading to homebuyers putting off their dream homes or attempting the work themselves.
67% of respondents said they've delayed renovations because they can't afford them, and 39% admitted to delaying multiple planned projects. Here are the most delayed home renovations:
| Project | % who delayed this project | 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 |
In a desperate attempt to avoid soaring costs, 28% of the respondents admitted that they'd attempt a complex home renovation project, such as electrical work or structural alterations, rather than hiring a professional.
3. Despite renovation costs increasing, the current housing market means 61% of homeowners would prefer to improve their existing home rather than move over the next five years
Despite the obvious difficulties around affording home improvements, the report sheds light on, respondents still want to 'improve rather than move'. 61% said they'd be more likely to renovate their current home, rather than move in the next 5 years, with 61% of those who chose this option doing so simply because they like their current home and neighbourhood. Here are the other reasons:
- 42% believe moving costs are too expensive
- 42% say the stress and disruption of moving puts them off
- 41% believe house prices are too high
4. Borrowing is increasingly helping homeowners to bridge the home improvements affordability gap
Although the most common answer to 'how would you pay for a major home improvement project tomorrow?' was 'I'd use my savings', Evolution Money's lending data shows that the number of approved home improvement loans has more than doubled since 2021.
Borrowing is steadily shifting towards larger loan values for home improvement loans. Applications between £20,000 and £29,999 grew by 13% year-on-year in 2025, making it the fastest-growing mainstream borrowing bracket.
Average approved home improvement loan values rose from £9,527 in 2016 to £21,005 in 2025 – an increase of 120.5%, providing further evidence for the fact that homeowners are preferring to upgrade their current home rather than go through the expense and stress of buying a new one.
