How the Cost-of-Living Crisis Is Impacting Home Renovations & Repairs
The ongoing cost-of-living crisis in the UK has significantly affected homeowners’ ability to undertake renovations and essential repairs. Rising material costs, increased labour expenses, and tightened household budgets have collectively led to a decline in home improvement activities.
Here’s a deep dive into how the crisis is reshaping the home renovation landscape—and why so many people are putting their projects on hold.
1. Renovation Costs Are Rising Faster Than Expected 💰📈
The cost of renovating a home has soared over the last few years, with homeowners facing double-digit percentage increases in project expenses. In 2022, tradespeople increased their prices by an average of 16%, with costs continuing to climb in 2023 and 2024. This means that a homeowner who spent £25,000 on renovations in 2022 would now need close to £30,000 for the same work (Franchise Local).
🔹 Key reason? The price of construction materials like timber, steel, and insulation has surged due to inflation, Brexit-related supply chain issues, and global market instability.
🔹 What it means for homeowners? Many are being forced to scale down their renovation plans or look for cheaper alternatives, sometimes at the risk of compromising quality.
2. More Homeowners Are Delaying Renovations ⏳🏚️
With costs soaring, more than half of UK homeowners (52%) have decided to delay or cancel their home improvement projects due to financial constraints (Property Investor Today).
🔹 Why?
- 47% of homeowners say they can’t afford renovations right now.
- 51% have scaled down their plans due to unexpected costs.
- Many are opting for DIY solutions instead of hiring professionals, despite lacking the necessary skills.
This shift is directly impacting tradespeople and the construction industry, as demand for large-scale home renovations slows down.
3. Essential Repairs Are Becoming Unaffordable 🚰⚡🔧
It’s not just luxury renovations that are suffering—even essential home repairs are being put off. A study found that 60% of homeowners cannot afford vital maintenance tasks like gas safety checks, electrical repairs, and roofing fixes (Rated People).
🔹 Most concerning statistic? 19% of UK homeowners—roughly one million households—are unable to afford boiler repairs or servicing, which could pose serious safety risks.
🔹 What this means?
- Small repair issues are escalating into major problems, which will cost even more to fix later.
- More people are living in unsafe or deteriorating homes because they simply can’t afford to maintain them.
4. Homeowners Are Struggling with Funding 🏦💸
Before the crisis, many people relied on personal savings or home improvement loans to fund their projects. However, as interest rates climb and disposable income shrinks, fewer homeowners are taking on new financial commitments.
🔹 In 2022, 80% of UK households planned to fund renovations with savings, but with inflation hitting hard, many are rethinking these decisions (Uswitch).
🔹 What’s changing?
- More homeowners are prioritising daily expenses over renovations.
- Some are opting for lower-cost fixes instead of full-scale upgrades.
This means that the home improvement market may shift towards more budget-friendly, practical solutions, rather than large, aesthetic renovations.
5. The Construction Industry Feels the Impact Too 🏗️🔨
It’s not just homeowners who are feeling the pinch—tradespeople and construction businesses are also struggling. With fewer people investing in renovations, many small trades businesses are seeing a drop in job opportunities.
🔹 Impact on the industry:
- Tradespeople are competing for fewer jobs, leading to lower profit margins.
- Some businesses are shifting to commercial projects instead of residential renovations.
- The demand for budget-friendly, smaller-scale renovations is increasing.
This means that companies offering affordable solutions, financing options, or cost-effective materials could stand out in the current market.
Final Thoughts: What’s Next for Home Renovations? 🏡🔎
The cost-of-living crisis has transformed the home renovation landscape. Rising costs, delayed projects, and unaffordable repairs mean that homeowners are re-evaluating their priorities.
Key takeaways:
✔️ Renovation costs are rising—expect to pay more for materials and labour.
✔️ Many homeowners are delaying or cancelling non-essential projects.
✔️ Even essential repairs are being postponed, raising safety concerns.
✔️ Tradespeople and construction firms need to adapt to changing homeowner needs.
If you’re considering a home improvement project, it’s crucial to plan ahead, get multiple quotes, and explore cost-effective solutions. Smart budgeting and choosing verified tradespeople can help you avoid unnecessary expenses and poor-quality work.
💡 Have you postponed a renovation due to rising costs? Share your experience in the comments below! 👇
Supporting Data: Visual Trends
To give a clearer picture, here are graphs showing how the crisis is affecting home renovations:
📊 Rising renovation costs over the years
📊 Percentage of homeowners postponing renovations
📊 Increase in unaffordable essential repairs
(See charts below for a visual breakdown! ⬇️)
Sources:
