More and more homeowners are choosing to invest in their existing home rather than move, increasing the demand for home improvement financing. This is according to secured loan broker Loans Warehouse.
The comments follow a Reuters report highlighting the latest Nationwide House Price Index, which showed UK house prices were flat in June, while annual growth slowed to 2.2%.
The report suggested that pressure on affordability, higher financing costs and weaker buyer confidence are contributing to a more cautious housing market, with many would-be movers putting their plans on hold.
Loan warehouse says its own credit data reflects this shift in homeowner behavior. During the second quarter of 2026, the number of home improvement loans closed increased by 14% compared to the first quarter of 2026, as more homeowners looked to expand, renovate or modernize their current home rather than incur the costs of moving.
With the costs of moving, including legal fees, surveys, removals and, where applicable, stamp duty, remaining significant, many households are finding that improving their existing home offers better long-term value.
Loans Warehouse co-founder Matt Tristram said: “The latest housing figures suggest that many homeowners are taking a break from moving, but they’re certainly not taking a break from improving their homes. We’ve seen a noticeable increase in the number of customers using secured loans to finance renovations, from kitchen renovations and loft conversions to larger extensions.”
“Many borrowers have built up significant equity in recent years, but are reluctant to refinance a mortgage because they are on historically low fixed-rate mortgage agreements.”