Consumers renovating for long-term, finds Houzz

Homeowners are renovating their homes for the long term, according to the annual UK Houzz & Home Study.

12 Jun, 23

Homeowners are renovating their homes for the long term, according to the annual UK Houzz & Home Study.

Kitchen trends of 2022 1

Home renovation and design platform, including the software for industry professionals, Houzz found more than 3 in 5 homeowners state they plan to stay in their homes for 11 years or more following a 2022 renovation (62%).

The survey of more than 2,500 UK respondents also found the share of renovating homeowners who cite increasing resale value as a reason for renovating fell 5% in 2022 to 6%, compared with 11% in 2021.

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Half of the surveyed homeowners renovated their homes in 2022 (49%) and nearly 3 in 5 decorated or furnished (57%).

The median spend for home renovations in 2022 was £16,250, whereas the spend for higher-budget updates (with the top 10% of spend) reached £120,000.

Interior spaces are the most popular areas to renovate (78%), followed by improvements to outdoor areas and adding extensions (51% and 20%, respectively).

Kitchen and bathroom projects remained a priority during renovations (37% and 33%, respectively) and command the highest median spend at £13,000 and £5,250, respectively.

The platform named its Best of Houzz Award winners 2023, earlier this year, which included a contemporary family bathroom created by London practice Decorbuddi.

Houzz & Home Study revealed renovation activity has continued into 2023, with half of homeowners planning projects this year (50%), at an anticipated median spend of £10,000 and £100,000 for higher-budget projects.

While the majority of consumers are using savings to fund the renovation projects, with the majority (80%), the share fell by 6% year on year.

Similarly, reliance on credit cards also dropped to 10%, compared with 18% in 2021.

Although homeowners are less reliant on credit cards to finance home improvements, the repayment period for those who opt to fund projects this way has increased.

Half of homeowners plan to pay off their credit cards over three or more years, an increase of 7% (50%, compared with 43% in 2020).

Alternatively, the percentage of those who plan to pay back the full balance within 11 months dropped 6% since 2020 (26%, compared to 32% in 2020).

Whereas cash from a previous home sale or from mortgage refinancing rose slightly year-on-year (20% and 9%, compared to 18% and 8%, respectively).

Vice president of industry marketing at Houzz Liza Hausman commented: “Homeowners are committed to their current homes and we continue to see investments that help spaces to function better for the long term.

“We’re also seeing an increased focus on efficiency, with homeowners making upgrades that will help to conserve energy and keep associated costs down.”