Affordability pressures, rising borrowing costs and weak buyer confidence are contributing to a more cautious housing market, with many potential movers putting their plans on hold, a Reuters report reveals.
It follows the recent release of the Nationwide House Price Index which found that UK house prices remained flat in June while annual growth slowed to 2.2%.
But the trend was also noted by second mortgage broker Loans Warehouse, which said the number of completed secured loans for home improvements rose 14% in the second quarter (Q2) of 2026 compared to the first quarter.
It found that more homeowners are looking to expand, renovate or update their existing property rather than face the cost of moving.
With conveyancing costs, including legal fees, surveys, removals and, where applicable, stamp duty remaining significant, many families find that improving their existing home offers better value in the long term.
Matt Tristram, co-founder of Loans Warehouse, said: “The latest housing figures suggest that many homeowners are pressing to pause on moving, but they are certainly not pressing to pause to improve their homes.
“We have seen a significant increase in the number of clients using secured loans to finance renovations, from kitchen refurbishments and loft conversions to larger extensions.”
“Many borrowers have built up significant equity over recent years but are reluctant to remortgage because they are sitting on historically low-rate mortgage deals. A secured loan, in the right circumstances, can allow homeowners to access some of that equity without replacing their existing mortgage.”
“Secured loans can provide an effective way for qualified homeowners to finance major improvements to their homes while spreading the cost over a longer period.”
The increase in borrowing for home improvements reflects a broader trend toward homeowners adapting their existing properties to fit changing lifestyles, whether that is creating additional living space, improving energy efficiency, or increasing the value of their homes.
Loans Warehouse believes this trend could continue if housing market activity remains subdued throughout the second half of the year, with homeowners increasingly choosing to consolidate their existing properties rather than enter a more uncertain market.
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