Loans Warehouse reports rise in home improvement lending as buyers hold off on moving
More homeowners are choosing to upgrade their current properties rather than move house, as conditions in the UK property market remain subdued, according to secured loan broker Loans Warehouse.
The observation follows the release of the latest Nationwide House Price Index, which recorded flat house prices in June, with annual growth easing to 2.2%. The report pointed to affordability constraints, elevated borrowing costs and reduced buyer confidence as factors behind the more cautious market, with a number of prospective movers delaying their plans.
Loans Warehouse said its internal lending figures point to a similar pattern among homeowners. The broker recorded a 14% rise in secured loans completed for home improvement purposes in the second quarter of 2026, compared with the first quarter, as more homeowners opted to extend, renovate or modernise their existing homes rather than take on the costs associated with relocating.
With expenses such as legal fees, surveys, removals and, in some cases, Stamp Duty continuing to add up, many households are concluding that investing in their current property offers stronger long-term value than moving.
“The latest housing figures suggest many homeowners are pressing pause on moving, but they're certainly not pressing pause on improving their homes,” said Matt Tristram (pictured right), co-founder at Loans Warehouse. “We've seen a noticeable increase in customers using secured loans to fund renovations, from kitchen refurbishments and loft conversions to larger extensions.
“Many borrowers have built up substantial equity over recent years but are reluctant to remortgage because they're sitting on historically low fixed-rate mortgage deals. A secured loan can, in the right circumstances, allow homeowners to access some of that equity without replacing their existing mortgage.”
“Secured loans can provide an effective way for eligible homeowners to finance major home improvements while spreading the cost over a longer period.”
The rise in home improvement borrowing reflects a wider shift towards homeowners reshaping their existing properties to suit changing needs, whether that involves adding living space, improving energy efficiency or increasing the property's value.
Loans Warehouse suggested this pattern could persist if the housing market continues to show limited activity for the remainder of the year, with homeowners favouring improvements to their existing property over entering a less predictable sales market.
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