Homeowners are investing more in renovations, with median spending increasing by 13% from £15,000 in 2020 to £17,000 in 2023, according to a recent survey by Houzz. The highest spenders, those in the top 90th percentile, have seen their renovation budgets double from £100,000 to £200,000 over the same period. However, overall renovation activity has slightly decreased, with 48% of homeowners taking on renovation projects in 2023, down one percentage point from the previous year.
Generation X continues to outspend other generations on renovations, with a median spend of £22,000, compared to £15,000 for Millennials and £16,000 for Baby Boomers. The top 10% of spenders among Gen Xers allocated £200,000, while Baby Boomers spent £180,000. Despite Gen Xers’ higher spending, Baby Boomers remain the most active renovators, with 54% undertaking projects, followed by Gen Xers at 34% and Millennials at 12%.
In 2023, a vast majority of homeowners (93%) hired professionals for their renovation projects. Specialty services, such as electricians (59%) and plumbers (52%), were in high demand.
Savings continue to be the primary funding source for renovations, used by 86% of homeowners. Credit card usage saw a notable increase, jumping from 10% in 2022 to 18% in 2023. Cash from previous home sales also contributed 18%.
Bathrooms were the most frequently renovated interior room in 2023, accounting for 29% of projects. Kitchens and living rooms followed closely at 26% each. Median spending for bathroom renovations rose 39% to £7,300, while kitchen renovations increased by 16% to £15,100.
Outdoor renovation projects rebounded significantly in 2023, with activity rising by 17 percentage points to 51%, compared to 34% in 2022. Outdoor lighting was the most common update (28%), followed by security systems (15%), which saw a nearly 2 percentage point increase as homeowners focused on installing cameras and sensors around their properties.