UK homeowners are investing in renovations with a long-term view, according to the new 2026 UK Houzz & Home Study from Houzz software platform.

The research found that 71% of renovating homeowners plan to stay in their home for at least 11 years, while 39% consider it their “forever home”. The trend is strongest among Baby Boomers, with 53% saying they never plan to move, compared with 31% of Gen X and 24% of Millennials.

Pent-up demand remains the strongest motivator for home upgrades, with more than a third of homeowners saying they finally have the financial means (36%) and time (34%) to renovate. Nearly a third of renovations are driven by a recent home purchase (31%), up from 27% the previous year. Damage related to home age follows at 21%, while life events account for another 20%.

“Renovating homeowners are making long-term investments in ‘forever homes’,” said Marine Sargsyan, head of economic research at Houzz.

“Pent-up demand remains a key driver of renovation activity, with homeowners finally having the financial means and time to adapt their homes to support evolving lifestyles. Continued spending across interiors, outdoor areas and essential home systems underscores homeowners’ commitment to improving the functionality, comfort and longevity of their homes.”

Activity Holds Steady as Spend Softens

Almost half of UK homeowners renovated their homes in 2025 (49%), while 60% decorated or furnished and 44% carried out repairs, up from 39% in 2024. Median renovation spend eased slightly to £20,000, down from £21,440 in 2024, although it remained above the £17,000 reported in 2023. High-end projects also declined, with the top 10% of renovations costing £115,000 or more, compared with £169,000 the previous year.

Looking ahead, homeowners continue to invest in their properties, with 46% planning a renovation in 2026. However, median planned spend has fallen to £10,000, down from £14,000 a year earlier.

Savings remain the main source of renovation funding, used by 86% of homeowners. Credit card use increased to 19%, while 17% funded projects through proceeds from a previous home sale and 10% used gifts or inheritance. Millennials were more likely than older generations to rely on credit cards, inheritance or mortgage refinancing, while Baby Boomers typically used proceeds from property sales.

Despite careful planning, 38% of homeowners exceeded their renovation budget, compared with 33% who completed projects on budget. More than a quarter (26%) began work without setting a budget.

Professional involvement remained high, with 92% of renovating homeowners hiring at least one tradesperson. Electricians (56%), plumbers (54%) and carpenters (41%) were the most frequently employed specialists.

Interior renovations remained the most popular projects, undertaken by 74% of homeowners, followed by outdoor improvements (72%) and home systems upgrades (65%). Bathrooms, kitchens and bedrooms were the most commonly renovated interior spaces, each selected by 27% of homeowners, while heating (38%), plumbing (34%) and electrical upgrades (34%) topped investment in home infrastructure.

The full report is available here.