"The demand for home renovations continues, but the industry is not immune to challenges posed by a volatile national economy"
- Marine Sargsyan - Houzz
Nearly one in eight homeowners has put their home renovation project on hold, according to a new study conducted in late August from Houzz Inc.
According to responses from nearly 1,000 UK-based homeowners, the top reasons for postponing projects include budget constraints, inflation and a lack of project urgency (34%, 33% and 28%, respectively).
That said, 26% of respondents completed a project in 2023 and more than half are either in the middle of a renovation project (35%) or planning to start one by the end of next year (26%). Fewer than 1% of homeowners report having cancelled a home improvement project in 2023.
Many homeowners prefer home renovations to moving, with 56% of the respondents wanting to stay in their current home rather than buy a new home that fits their needs. Homeowners attribute this to financial reasons, including that renovating is a better return on investment and more affordable than moving (23% and 20%, respectively).
A small but notable percentage highlights that their current interest rate is better than what is available today (6%).
Almost half of the homeowners will kick off renovation projects this year (49%), with kitchens (58%) and bathrooms (55%) topping the list. To tackle these substantial projects, 91% plan to hire a professional, including builders (52%), electricians (45%) and kitchen and bathroom fitters (42%), among others.
Nearly half of projects planned for 2023 have a budget of over £50,000 (61%), and one in six projects has a budget of £100,000 or more (18%).
Of those who completed their projects, the top challenges included finding the right professionals, sourcing products and materials, and staying on budget (53%, 36% and 29%, respectively). Other commonly cited challenges included trouble visualising the project before work began, feeling educated on the process and funding/financing the project (20%, 19% and 16%, respectively).
Marine Sargsyan, Houzz staff economist, said: “The demand for home renovations continues, but the industry is not immune to challenges posed by a volatile national economy.
“Faced with inflation and rising interest rates, many homeowners have been forced to reevaluate their ability to pursue immediate improvements. That said, as homeowners choose to remain in their ageing homes rather than move, they continue to turn to industry professionals for assistance with necessary repairs and discretionary projects that improve their quality of life.”
