The majority of design and renovation professionals say they are expecting their revenue to grow this year, as the sector hopes for a return to normalcy after a challenging few years.
Almost three-in-five professionals (57%) said they expected their revenue to rise in 2025, a figure that has increased by 4% in the last year, according to the latest research from design software platform Houzz.
In its 2025 UK State of the Industry report, which was released today, the company asked renovation firms across the UK for their frank assessments of the market for the year ahead.
In addition to the encouraging news that businesses expect revenue to rise, fewer design professionals are bracing for revenue decrease compared to last year. Only 18% of design professionals are anticipating a revenue slide in 2025, down by a healthy 5% over 2024’s figure of 23%.
Additionally, a combined 40% of respondents said they were expecting 2025 to be a “good” or “very good” year for their businesses, and 36% said they felt neutral about their yearly prospects. This means that only a quarter (25%) of those asked were bracing for a “poor” or “very poor” result in 2025.
In fact, the design & build firms, such as KBB studios, had the most positive outlook for the year out of all the groups polled. Only 14% of design & build businesses thought that 2025 would be “poor or very poor”, compared to 22% of interior designers and 24% of architects.
Looking at challenges over the next year, almost three quarters (71%) of design & install companies are anticipating costs to rise again throughout 2025. However, much more encouragingly, roughly three in ten (29%) believe they will see a greater demand for their services compared with the last year.
When asked where exactly they plan to invest time and money to improve their business in 2025, “reducing costs/risks” was the most frequently given answer (43%) by design & build businesses. This was followed by “improving the sales process” and “increasing efficiency”, both of which were mentioned by around four-in-ten businesses (39%).
“After navigating a difficult two years, home professionals are approaching 2025 with a sense of cautious optimism,” reflected Marine Sargsyan, Houzz staff economist.
“Pros report that they’re implementing new processes for operational efficiency and client communication, and making strategic investments in technology to address the challenges they faced last year.”
You can read the whole Houzz 2025 UK State of the Industry report here.
