Study Reveals UK Home Improvement Affordability Gap

The UK Home Improvements Report from Evolution Money found that 61% of the study’s respondents would prefer to improve their existing home rather than move in the next five years. However, over two-thirds have delayed a planned home improvement because they couldn’t afford it. The report combines data from a survey of 2000 UK homeowners, home improvement costs from four leading tradesperson platforms, and internal lending data to explore the growing affordability gap between the cost of major home improvements and how much money UK homeowners are managing to save to fund the work. 

Some of the key findings include:  

1. The UK has a home improvement affordability gap

• Although half of the surveyed homeowners say they would use their savings to pay for a major renovation, only 34% have a dedicated home improvement savings fund.

• The most common estimated budget for a dream renovation is £20k - £40k, while 75% of the participants have less than £10k saved up 

• 28% (over a quarter) said they’d consider carrying out a complex home renovation themselves rather than hiring a professional to save money

2. Renovations are being delayed

• 67% have delayed multiple renovations because they can't afford to carry them out, and 39% admitted to delaying multiple planned projects 

The most delayed home renovations:  

3. Homeowners want to invest in energy-efficient upgrades, but the upfront cost is holding them back 

• 75% of homeowners say they would consider carrying out improvements specifically designed to reduce energy bills.

• Many energy-efficient upgrades require substantial upfront investment: solar panels (£7,187), heat pump (£9,125), etc. 

• 46% have less than £5k saved for home improvements, which puts these upgrades out of budget

 4. Borrowing is increasingly helping homeowners to bridge the affordability gap 

• 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%.

Click here to read the full publication

Source : Evolution Money

Image : Pranav Kukraja / shutterstock / 2295184945

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