House prices hike push owners to renovate, not relocate
As house prices surge at their fastest annual rate in two years, many UK homeowners are opting to renovate rather than relocate due to high property costs and the highest tax rates in four decades.
House prices have hit a record high, as analysts suggest higher demand has come up against a continued shortage in housing supply.
The cost of the average home in the UK reached highs of £293,999 last month, the highest ever recorded in this country.
For London, the average property is priced at around £543,308.
According to recent data from global fintech Revolut, this has led customers to focus on spending on home improvements.
This highlights a trend towards making existing homes more appealing and functional rather than facing the challenges of purchasing a new property.
Revolut’s data indicates that spending on architectural services and surveyors increased by 20 per cent over the past year, as homeowners seek planning and design expertise to revamp their spaces.
Spending on trade contractors has seen a 26 per cent quarterly rise, especially as people spruce up their homes ahead of the Christmas season.
Homeowners are also increasingly taking on DIY projects to manage costs, with significant spikes in spending on items like flooring (up 30 per cent) and stonework (up 14 per cent), and plastering materials.
Essential systems such as heating and plumbing saw a spending rise of 22 per cent, underlining the drive for structural and comfort upgrades.
This trend extends to smaller home details too.
Household appliance purchases rose by nearly a third, while soft furnishings and furniture spending jumped 23 per cent as homeowners fine-tune their interiors.
Fiona Davies, head of growth at Revolut, said: “As house prices continue to soar, we’re seeing a strong shift towards renovation”.
She also said: “Whether it’s a major project or a simple refresh, Revolut users across the country are putting their creativity and savings into making their house a home”.