The home improvement industry in the UK is currently experiencing a complex mix of trends, shaped by both economic pressures and evolving homeowner priorities.
Current Trends and Spending
As of 2024, there has been a notable shift in homeowner behaviour regarding home improvements.
While overall activity has seen a slight decline, the average spend per project has increased. This suggests that while fewer people may be undertaking renovations, those who do are investing more heavily in their homes. The median spend on renovations has risen, with some reports indicating an increase to around £17,000 to £18,000 per project, reflecting both inflation and a focus on higher-quality or more extensive work.
Popular Home Improvements
Homeowners are increasingly focusing on energy-efficient upgrades, such as installing solar panels, heat pumps, and enhanced insulation. These projects have become particularly popular due to rising energy costs and greater environmental awareness.
Additionally, there is still strong demand for kitchen and bathroom remodels keeping plumbers happy, which remain staples in the home improvement sector.
Economic Pressures and the Builder Industry
The UK construction and home improvement sectors are also contending with significant challenges, including material shortages and rising costs. These factors have led to a decrease in the number of new projects, particularly in the first half of 2023. However, forecasts suggest a recovery is on the horizon, with expected growth of 8% to 12% in 2024. This recovery is likely to be driven by increased household spending and larger project starts, particularly in the residential and education sectors.
Future Outlook
Currently, many home improvements specialists are unfortunately struggling with many having to cut costs. If you are one, we can help you compare builders insurance and reduce one expense there. You can also read our guide on how to save money on tradesman insurance.
However, looking ahead, the home improvement industry is poised for a gradual recovery as economic conditions stabilise. However, persistent issues such as labour shortages and high material costs may continue to temper growth. Builders and tradesman who can adapt by embracing sustainable practices and optimising their supply chains are likely to find new opportunities in this evolving market.
While the UK home improvement industry faces headwinds, there is cautious optimism for a rebound driven by strategic investments in high-demand areas and an overall recovery in economic conditions.
