Homeowners choosing to improve rather than move as housing market slows, says Loans Warehouse

06 July 2026

As the UK housing market shows signs of slowing, secured loan broker Loans Warehouse says more homeowners are choosing to invest in their existing property rather than move, with demand for home improvement finance rising.

The comments follow a Reuters report highlighting the latest Nationwide House Price Index, which found UK house prices were flat in June while annual growth slowed to 2.2%. The report suggested affordability pressures, higher borrowing costs and weaker buyer confidence are contributing to a more cautious housing market, with many prospective movers putting their plans on hold.

Loans Warehouse says its own lending data reflects this shift in homeowner behaviour. During Q2 2026, the number of secured loans completed for home improvement purposes increased by 14% compared with Q1 2026, as more homeowners looked to extend, renovate or modernise their current property instead of facing the expense of moving.

With the costs of relocating including legal fees, surveys, removals and, where applicable, Stamp Duty remaining significant, many households are finding that improving their existing home offers better long-term value.

Matt Tristram, Co-Founder at Loans Warehouse, said:

"The latest housing figures suggest many homeowners are pressing pause on moving, but they're certainly not pressing pause on improving their homes. We've seen a noticeable increase in customers using secured loans to fund renovations, from kitchen refurbishments and loft conversions to larger extensions."

"Many borrowers have built up substantial equity over recent years but are reluctant to remortgage because they're sitting on historically low fixed-rate mortgage deals. A secured loan can, in the right circumstances, allow homeowners to access some of that equity without replacing their existing mortgage."

"Secured loans can provide an effective way for eligible homeowners to finance major home improvements while spreading the cost over a longer period.

The increase in home improvement borrowing reflects a broader trend towards homeowners adapting their existing properties to suit changing lifestyles, whether that's creating additional living space, improving energy efficiency or increasing the value of their home.

Loans Warehouse believes this trend could continue if housing market activity remains subdued throughout the second half of the year, with homeowners increasingly opting to enhance their current property rather than enter a more uncertain market.

• Reuters reported on 1 July that the latest Nationwide House Price Index showed UK house prices were unchanged in June, with annual house price growth slowing to 2.2%, reflecting weaker market momentum.
• Loans Warehouse internal data shows that completed secured loans for home improvement purposes increased by 14% in Q2 2026 compared with Q1 2026.