The value of home improvement finance provided through V12 Retail Finance more than doubled in the third quarter of 2026, with the lender suggesting households are increasingly choosing to renovate rather than relocate.
Finance values in the category rose by 112% between July and September compared with the same period last year. It was the fastest-growing sector across V12’s lending portfolio, outpacing the platform’s overall growth of 7%.
The lender said high mortgage rates and moving costs were influencing household decisions, encouraging consumers to extend, upgrade and improve their existing properties despite continued economic uncertainty.
Andrew Phillips, managing director of V12 Retail Finance, said: “The standout story of 2026 has been the continued investment households are making in their homes. Consumers are still spending, but they’re being selective and focusing on purchases that improve everyday life and deliver long-term value.”
Growth in home improvement finance accelerated through the quarter. Values were up 56% year-on-year in July, 107% in August and 163% in September.
The category has now almost quadrupled in value since the third quarter of 2024 and represents around 7% of all finance provided through V12’s platform.
However, the increase also reflects growth in the lender’s retailer network. V12 said its partnership with Magnet, launched in July, supported the figures, alongside continued expansion among specialist home improvement retailers across the UK.
The data covers lending through V12’s platform rather than the home improvement market as a whole. No separate figures for windows, doors or other glazing products were provided.
Phillips said: “For many households, improving an existing property is becoming a more attractive option than moving. That’s reflected in the significant growth we’re seeing in home improvement finance and the continued strength of sectors linked to the home.”
Across the wider platform, V12 reported growth despite what it described as a challenging retail environment. Prolonged hot weather and a busy sporting calendar affected shopping patterns during July, the lender said.
Demand also increased in several other categories. Consumer electrical finance more than doubled, cycle finance rose by 24%, and healthcare and dental finance increased by around 6% year-on-year. Motor finance was also ahead of the previous year.
Furniture remained V12’s largest lending category, accounting for almost half of total finance values during the quarter.
Phillips said the figures pointed to selective spending rather than consumers withdrawing from larger purchases.
“What we’re seeing is a consumer who remains cautious about the wider economy but is still prepared to commit to larger purchases when they feel necessary or worthwhile,” he said.
“The breadth of growth across home improvements, healthcare and other practical categories gives us confidence as retailers head into Black Friday and the Christmas trading period.”
Why This Matters: For window and door suppliers, V12’s figures suggest households remain willing to fund substantial improvements when the benefits justify the expense. That creates an opportunity to position replacement glazing around comfort, energy performance and lasting value. Accessible finance could help installers convert enquiries into orders, particularly where upfront costs delay decisions. However, these figures reflect one lender’s expanding network, rather than sector demand. Businesses should treat them as an encouraging signal, while testing appetite within their own pipelines and markets.
