Despite the number of UK homeowners undertaking a renovation remaining broadly consistent, their average planned spend has dropped by almost 30% in 2026, according to the latest research by online design platform Houzz.
In its 2026 UK Houzz & Home Report released today, the design platform found that the average renovation budget has declined to £10,000 in 2026, down from £14,000 in 2025, or a reduction of around 28%.
However, despite this drop in budgets, Houzz also found that roughly two-in-five homeowners (38%) actually exceeded their initial home renovation budgets, while roughly a third (33%) completed their project “on budget”.
Just 3% of renovators completed their project under budget, and around a quarter (26%) embarked on home renovation projects without setting any kind of budget at all.
Nearly half of homeowners (49%) report undertaking a renovation in the last 12 months, down slightly from 51% in 2024. Bathrooms, kitchens and bedrooms were tied as the most common interior projects by Houzz’s survey participants, with each being undertaken by 27% of renovating homeowners.
Across renovations, the average spend fell slightly (around 6%) in 2025 to £20,000, down from £21,440 in 2024.
According to Houzz, roughly seven-in-ten (71%) homeowners plan to stay in their homes for at least 11 years or more following a renovation. Additionally, around two-in-five consider their current residence to be their forever home (39%).
When asked what had motivated them to upgrade their homes, more than a third of homeowners (36%) said that it was because they felt like they finally had the financial means to renovate. A similar 34% also said they now felt like they had the time to do so, too.
Nearly a third of renovators said they were driven by a home purchase (31%), which is up by 4% from last year.
A change in life events accounted for 20% of renovations. In this group, roughly three-in-ten (27%) said this was because they were making adjustments to their space due to working from home. 22% said they were renovating due to a change in income or employment, while 14% renovated as a result of health or accessibility needs.
“Renovating homeowners are making long-term investments in ‘forever homes’,” commented 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.”
Houzz says its annual UK Houzz & Home Study is the largest survey of residential renovation, building and decorating activity published. The 2026 study included more than 1,000 UK respondents, with data collected between March and June 2026.
