UK homeowners are continuing to invest in their homes with a long-term outlook, according to the 2026 UK Houzz & Home Study from Houzz. The research found home improvement activity remained resilient in 2025, with almost half of homeowners (49%) completing a renovation, while 60% undertook decorating or furnishing projects. Repair work also increased, rising to 44% from 39% the previous year.
Although activity remained strong, spending eased. Median renovation costs fell slightly to £20,000 from £21,440 in 2024, while the largest projects also reduced in value, with the top 10% of renovations reaching £115,000 or more, compared with £169,000 a year earlier.
Looking ahead, confidence in home improvement remains, with 46% of homeowners planning to renovate in 2026. However, intended investment is expected to be lower, with median planned spend falling to £10,000 from £14,000.
Most homeowners continued to finance projects through savings (86%), although the use of credit cards rose to 19%. Proceeds from a previous property sale (17%) and gifts or inheritance (10%) were also common funding sources, with younger homeowners more likely to rely on borrowing or family support than older generations.
Budget pressures remain evident, with 38% of homeowners spending more than planned, while only one-third completed their project within budget. More than a quarter (26%) started work without setting a budget.
The use of professional tradespeople remained widespread, with 92% of homeowners employing at least one specialist. Electricians (56%) and plumbers (54%) were the most frequently hired, followed by carpenters (41%).
Bathrooms, kitchens and bedrooms were the joint most popular interior renovation projects, each undertaken by 27% of renovating homeowners. Heating upgrades led investment in home systems (38%), ahead of plumbing and electrical improvements (both 34%).