More homeowners are choosing to invest in their existing property rather than move, as demand for home improvement financing rises. This is according to Secured Loan Broker Loan Depository.
The comments follow a Reuters report highlighting the latest nationwide house price index, which found that UK house prices were flat in June while annual growth slowed to 2.2%.
The report noted that 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.
Loan warehouse It says its lending data reflects this shift in homeowner behavior. During Q2 2026, the number of secured loans completed for home improvement purposes increased 14% compared to Q1 2026, as more homeowners looked to expand, renovate or update their existing property rather than face moving costs.
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 pause on moving, but they are certainly not pressing pause on improving their homes. We have seen a marked increase in customers using secured loans to finance renovations, from a kitchen refurbishment and loft conversion to larger extensions.”
“Many borrowers have built significant equity over recent years but are reluctant to remortgage because they are sitting on historically low-rate mortgage deals.”
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