The UK Home Improvements Report: How Much Are Homeowners Spending, Saving & Borrowing to Upgrade in 2026?
- 61% of survey respondents would rather improve their home than move
- 67% (over two-thirds) of respondents have delayed a home improvement because they couldn’t afford it
- Most respondents think they’d need between 20-50k for their dream renovation, but only a third have dedicated home improvement savings
- The average value of an approved home improvement loan has increased by 120.5% over 9 years
- Applications for home improvement loans between £20,000 and £29,999 rose by 13% in 2025 compared to 2024
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.
61% of UK homeowners would rather improve than move
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:
- 61% like their current home and neighbourhood
- 42% believe moving costs are simply too expensive
- 42% say the stress and disruption of moving puts them off
- 41% believe house prices are too high
The findings reflect a growing trend towards investing in existing homes rather than entering an increasingly expensive housing market.
The UK has a home improvement funding gap
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:
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.”
Most homeowners’ savings would only cover small renovations
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:
- Painting and decorating: £3,554
- Decking installation: £3,033
- Fitted wardrobes: £2,833
- Bathroom tiling: £841
- Fencing: £1,249
- EV charger installation: £950
However, many of the country’s most popular improvements now exceed this level of savings, including:
- Bathroom renovation: £5,725
- Central heating installation: £5,050
- New boiler: £6,017
- Solar panels: £7,187
- Replacement windows: £8,925
- Air source heat pump: £9,125
- Kitchen renovation: £10,750
- Loft conversion: £45,153
- Double-storey extension: £106,000
The findings demonstrate how even relatively common renovation projects are increasingly beyond the savings held by many households.
Energy efficiency is a priority, but the upfront cost is holding homeowners back
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:
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.”
The home improvement funding gap is leading to renovations being delayed
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:
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.
Borrowing is increasingly helping homeowners bridge the funding gap
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 amount being borrowed per loan is increasing over time, reflecting higher costs
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.
What can we take away from this research?
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.”
Methodology
The data for this campaign was collected from 3 sources:
- A survey of 2000 UK-based homeowners aged 18-99
- Third-party cost data collected from sites incl. CheckaTrade
- Internal data from Evolution Money
Here’s a more detailed breakdown of each method:
Survey methodology:
- The survey data was collected using Pollfish in July 2026.
- The demographics were 2000 UK residents who owned a property, aged between 18 and 99.
- Detailed audience: Country: United Kingdom, Age: [18 – 24], [25 – 34], [35 – 44], [45 – 54], [55 – 64], [65 – 99], Gender: Male, Female, Type of Home: Owned apartment, Owned Single Family Home, Owned Multi-Family Residence (Duplex, Triplex), Farm
3rd party data methodology:
- Costing data was collected from the following sites:
- Each of these sites regularly updates their guides on the average cost of a wide range of home improvements (no guide used was updated any earlier than March 2026).
- Costing data for each home improvement was collected from these guides, and then a mean average was taken to achieve the overall average cost.
- Example guide: https://www.checkatrade.com/blog/cost-guides/cost-double-storey-extension/
All home improvement cost data
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:
- Average square footage of a double storey extension: 60 m2
- Average square footage of a single-storey extension: 20 m2
- Average UK house size: 92m2
- A three-bed house is assumed to have 12 windows
- Average driveway: 60m2
- Average UK garden size: 244 m2 and 15 m length
- Medium-sized decked area: 15 – 30m²
- Average living room size: 17.5m2
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:
- The average amount that was borrowed for home improvement loans YoY from 2016 to 2026 Y2D (July 2026).
- The % of total Evolution Group customers borrowing for home improvements from 2016 to 2016 Y2D (July 2026).
- The age breakdown of the customers taking out the home improvement loans from 2016 to 2016 Y2D (July 2026).
- The total amount of home improvement loans applied for and accepted from 2016 to 2016 Y2D (July 2026).
- The amount of applications for home improvement loans received per month for 2024-25
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.
We’ve investigated what exterior features can make your home more attractive to prospective buyers, and even increase its value.
We all know that even if we’re not looking to buy a property, we still form an opinion of it from the moment we see it. But how much does that first impression impact our overall decision to buy a property, and how much we’re prepared to pay for it?
To find out, we asked 2,000 UK residents just how much ‘kerb appeal’ impacts their decision when they’re house hunting.
Our research reveals that most people (93%) pass judgement on a property based on purely on how it looks from the outside, and the exterior appearance of a home has the power to affect its value too, with three in ten (30%) happy to pay an extra £5,000 or more for a home with a well-maintained exterior. But which elements are particularly persuasive when it comes to generating that extra cash?
Double glazed windows (37%), a well-maintained roof with no missing tiles (37%) and well-maintained plants or trees (25%) were the top three contenders when it came to encouraging a higher offer for property.
While these can be expensive to install or fix there are several cheaper ways to make a property more appealing to perspective buyers:
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- A freshly painted door is inexpensive and encourages one in five (19%) people to offer more money
- A neat lawn (19%)
- Freshly jet washed walls (13%) or path (12%)
- A clean car in the driveway (10%) are also key to consider when trying to achieve maximum ‘kerb appeal’ and property value.
Interestingly, it is the younger generation (18-24s year-olds) that are most comfortable offering more money for a home with a well-maintained exterior, and it is also this generation that value non-permanent or low-cost features too such as a clean car on the driveway (14%), a house name (11%) and a bespoke house number next to the front door (11%).
The outside appearance of a property also has the power to put potential buyers off buying it altogether and even lower its value too. Crack(s) in the exterior walls (64%), damaged windows (61%) and a roof with missing or uneven tiling (57%) were all identified as key elements that take away from a property’s ‘kerb appeal’.
In addition to these, an unmown lawn (26%), visible rubbish bins (21%), a very brightly coloured front door (19%), a lack of outside lighting (9%) and washing hanging outside (7%) also have an adverse effect on the first impression of a property.
Again, it would appear as though the younger generations are more guilty of judging a property by how it looks from the outside, with 98% of 18–24-year-olds admitting to deciding if they like a house before they’ve even stepped inside it.
We spoke to Craig Bray, Divisional Director at Yopa estate agents about our research findings and he said: “Would-be sellers can really boost the value of their property with some simple, tactful renovations.
“At Yopa we estimate that simply improving your property’s ‘kerb appeal’ with a freshly painted exterior, clean windows, clear gutters, a tidy driveway and a freshly painted front door can boost the value of a property by up to 10%.
“First impressions count, and the outside of your property is the first thing potential buyers will see, both when browsing online and in person at a viewing.”
The ONS quoted the average UK house price as being £251,000 in April 2021, which means that according to Craig at Yopa, a well-presented property could achieve an additional £25,100 in value.
If you’re a homeowner who is looking to improve the ‘kerb appeal’ of your property, then our Homeowner Loan could provide you the cash you need to make those all-important changes.
Don’t forget, we’re here to help! We have listed some frequently raised questions and answers which may help you when you’re considering a loan provided through Evolution Money.
Alternatively, you could contact us directly or use our no-obligation application form to get an idea from an adviser of what loan could be available to you.
Evolution Money surveyed 2,000 UK adults in August 2021.
We explore the regions that have the highest and lowest average credit scores
Evolution Money, a secured loans provider based in Manchester, have been nominated as a finalist in the MEN Business of The Year Awards.
The announcement follows the recent news of a three-year, £100m senior debt facility with NatWest, continuing a strong year for the company.
Steve Brilus, CEO of Evolution Money, said: “We’re honoured to be nominated in the prestigious MEN Business of The Year Awards. As a Manchester founded company, it is a privilege to be a finalist alongside so many other fantastic local businesses.
Evolution Money has had an incredibly successful 2018 and 2019, but none of our achievements would have been possible without the valued contribution of each member of the Evolution family.”
Steve added: “At Evolution Money, we are always striving to evolve and innovate in order to support our future growth and on-going commercial success. Our focus will always be our customers, ensuring responsible lending is at the heart of everything we do.”
Award-winning Evolution Money, is part of the Manchester-based, Darwin Group. Since its launch in 2011, Evolution Money has grown to be regarded as one of the fastest growing finance companies in the UK, being recognised in “The Sunday Times Virgin Fast Track 100”. Evolution Money has built up a substantial loan portfolio in just over eight years, having lent more than £210m to more than 23,000 customers across the UK.
The MEN Business of The Year Awards will take place on Thursday 14th November at Principal Hotel Manchester
For more information about Evolution Money, visit: www.evolutionmoney.co.uk
Evolution Money are delighted to announce a new 3 year, £100m Senior debt facility with NatWest which secures the capital requirements for the business over the coming years.
This facility will allow Evolution to continue delivering its growth plans whilst capitalising upon exciting new product opportunities.
Commenting on the facility, CEO Steve Brilus said: “I am delighted that we are continuing our partnership with NatWest who have supported Evolution since 2013. This sizeable commitment reflects our strong working relationship with the NatWest team, their confidence in our business and a shared vision of the future opportunities that exist in our sector“
Matt Glew, Relationship Director of NatWest’s Large Corporate & Institutions business, added “We are very happy to have closed this new facility with Evolution, and are looking forward to continuing to work closely with Steve and the team as the business moves into the next stage in it’s journey. We have extensive experience in the 2nd charge mortgage sector and are excited to see Evolution grow with our support.”
Filip Skolnik, Structured Finance Director at NatWest, added “This commitment is a testament to the quality of the business that Steve and the Evolution team have built over the years, and we are pleased to have supported the business during it’s earlier years and having now structured a new financing solution that will enable progression to the next exciting growth stage.”
Evolution Money are proud to announce they have won the Feefo Gold Service award for 2018.
This independent award recognises businesses who deliver exceptional experiences rated and reviews from real customers.
Created by Feefo, Trusted service is awarded only to those companies that meet the high standard, based on the number genuine reviews collected and average rating received. This accreditation remains unique, as it is based purely on the interactions with verified customers. All reviews are verified as genuine, the accreditation is a true reflection of a business’ commitment to outstanding service.
Lynne Hardwick Head of Marketing said “It’s a real honour to be recognised for delivering exceptional service for our customers. We’ve been working hard to ensure our customers receive the best possible service. We’re looking forward to another successful year ahead”.
Speaking on this year’s award, Andrew Mabbutt, CEO at Feefo, commented: ‘The Trusted Service award has always been about recognising those companies that go the extra mile. Once again, we have seen many incredible businesses using Feefo to its full potential, to provide truly memorable experiences for their customers – and rightly being awarded with our most prestigious accreditation. I look forward to the continual success of the businesses that work in partnership with Feefo throughout 2018.’
To achieve this coveted Gold Trusted Service 2018 award, Evolution Money collected at least 50 reviews and achieved a Feefo service rating of 4.5 and 5.0. from January to December 2017.
Evolution Money are honoured to be receive this accredited award and are committed to continuing in working hard to deliver outstanding levels of customer service in the future.
Evolution Money, a secured loans provider based in Manchester, has been featured on the Sunday Times Virgin Fast Track 100 league table for the second year in a row.
Published every December, the research highlights those British companies who have achieved the fastest-growing sales within the last three years. Featured for a second time, Evolution Money successfully claimed the 82nd spot as their annual sales increased by more than 52% throughout this period.
Lynne Hardwick – Head of Marketing at Evolution Money – was delighted by the news:
“This is a fantastic achievement and we are extremely proud of all our staff and their continuing efforts. We clearly couldn’t do it without their hard work and support.
“When you consider how many thousands of private businesses there are, appearing anywhere in the top 100 is very special. We are delighted to appear once again in the Sunday Times Virgin FastTrack100.”
The league table is compiled by Fast Track and published in the Sunday Times every year. To qualify, firms must meet a variety of conditions. For example, they must be registered in the UK and have variable sales growth throughout the three-year-period. Of those included in the list, two others were from Manchester – Missguided and CarFinance 247.
Based on Portland Street, Evolution Money is part of Darwin Loan Solutions, and alongside its sister company Progressive Money, employs more than 140 staff members. The firm hopes to continue growing and make it third time in a row during 2018. In the meantime, Evolution Money is planning to celebrate this achievement at their Christmas party.
The 16th of May is a very special day on the Evolution Money Calendar – it’s our birthday!
So, this time 6 years ago what was happening…? Well, our colleague James was sitting at his desk (as he is today) but back then he was very excited at the thought of us funding our very first loan, a loan for £750.
It was Monday 16th May 2011 and the business was packaging its very first loan. We had been preparing for this moment for five months and the tension was building… we packaged it, approved it and prepared it for a pre-funding review.
The file was passed to our FD who scrutinised it to within an inch of its life, before he counter-signed it and we were ready to go…
At 16:44 on Monday 16th May 2011 we hit the button and the funds were transferred and that was it, our first loan was funded and Evolution’s journey had begun…!
Fast forward 6 years and what does the business look like today?
Well, we are now a multi award winning, multi-million-pound business…
We’ve outgrown the stationery cupboard we started out in and now employ over 150 people. From that first loan for £750 we have gone on to lend a staggering £134m to over 14,000 customers. That’s certainly something worth celebrating.
One of the highlights of the last six years must be watching how people have grown with the business and seeing new people join. At Evolution Money, we truly do have a brilliant team of people. It’s testament to the business that many of the original team are still here all this time later.
Six years on, as MD, I am still as excited as I was when we funded that first loan. The building blocks have been secured for the future and the business continues to grow from strength to strength.
The future is still for us all to determine and if we work together it will be great. We must remember the founding value of our business, succinctly rolled up in one word – TRUST.
Trust that we are doing the right things every day. Trust from our investors that we are running a compliant and robust business. Trust from our customers that we interact with them in a fair and transparent way, ensuring they are at the heart of everything we do. Trust from our colleagues that we are all working together and that no one individual is more important than the team…. If we achieve this then we will continue to have a great business.
On behalf of myself and the rest of the Directors a huge THANK YOU to both our customers and our team for the journey so far and we look forward to working with you for the next 6 years…
Mat Beaver,
Managing Director
The Darwin group – which offers secured and unsecured loans to customers through Evolution and Progressive Money – is delighted to announce a new funding facility of in excess of £75m which supports the Groups objective of becoming a leading consumer finance brand in the UK.
The award-winning Evolution, ranked as one of the fastest growing finance companies in the UK as recognised in “The Sunday Times Virgin Fast Track 100”, and its sister company Progressive Money, have built up a substantial loan portfolio, having lent more than £120m in just over 5 years.
Joining the original funding partners, NatWest and Shawbrook Bank, are Insight Asset Management and another UK-based private credit manager, all four of whom have significant experience in financing consumer finance lenders and a shared desire to see Evolution and Progressive Money increase market share through both organic growth and the development of new and innovative products.
Steve Brilus, Chief Executive of Darwin said “We are entering an exciting new phase of growth and I am delighted to have such forward-looking and supportive funding partners investing in our business. This funding provides the springboard to enable us to achieve our ambitious plans and to take Evolution and Progressive Money to the next level”.
Evolution and Progressive Money were advised by the Financial Services Corporate Finance team at EY.
Mat Beaver, Managing Director of Darwin said “We are grateful to Nick Parkhouse and the team at EY for facilitating this transaction. They have worked closely with us in understanding our business and our plans, and have supported us throughout the process.”
Manchester based lender Evolution Money is proud to announce its expansion into new city centre premises. Securing the deal for the coveted location earlier on this year, the move was inevitable for the loan provider, having out-grown its previous home near the busy Spinningfields area of the city. Evolution Money has now relocated to the newly refurbished and larger 12,000sq ft offices at 9 Portland Street, Manchester.
The Grade II-listed property in the Piccadilly commercial area underwent renovation at the end of 2014, with Evolution Money now taking the entire third floor of the building which has been fully fitted out and designed for the company.
Kerri Turtill, Operations Director at Evolution Money commented: “We are excited about the next phase of development of our growth and we feel the high quality accommodation we have secured at 9 Portland Street will give us the platform to achieve our objectives.”
Evolution Money has grown steadily and robustly since being established in 2011, and has developed to be a key player in the second charge sector, recently celebrating its fourth birthday. The business now boasts a strong workforce of over one hundred employees and is set to grow further through its ongoing recruitment strategy and significant investment for training and staff development.
2015 will see the multi-award winning lender grow and build on the previous years’ successes with the promotion of the Evolution loan products and lending range through its business partners and directly to customers.
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.
