These Home Renovations Have Skyrocketed in Popularity in Recent Years – An Expert Looks at The Stats

Since the COVID-19 pandemic, home improvement spending has increased significantly in the UK, with many homeowners turning to renovation projects to improve their living spaces. With more people now working from home and with the rising housing costs, many UK homeowners are looking to improve their current properties.

According to Aviva’s 2025 How We Live Report, almost seven million UK homeowners plan to renovate their homes this year and intend to spend more than £14,000 each on average over the next two years.

This shows just how substantial the home renovation market is at the moment. From kitchen extensions to energy-efficient upgrades, the nation’s enthusiasm for home renovations shows no signs of slowing down.

The data also shows that renovation plans are particularly popular among younger age groups.

Close to three-quarters (73%) of Generation Z (aged 27 and under) and two-thirds (65%) of Millennial (aged 28-43) homeowners are planning a renovation.

So, what exactly is fuelling the boom in home renovations? Well, it all stems from a combination of evolving lifestyles, increased energy costs, and the challenging property market. In this article, our property and construction expert, Thomas Goodman, explores the data behind the top home renovations and what homeowners can expect next.

The Most Popular Home Renovations Right Now

Our lives are constantly evolving, and so are our needs. With this in mind, our priorities for home improvements are changing. Information from the BarbourABI Home Improvement Index 2024 shows that we are now focusing a lot more on certain renovations, and a lot of the previous big-ticket renovations are heading further back on our list of priorities.

Changes in the home improvement sector that came during and after the COVID-19 pandemic are still in play. Applications for home offices, garden improvements, and roof terraces shot up during the pandemic and are still popular now, despite slowing down since their peak in 2021.

Other influences on the market are now dominating, such as the current cost-of-living crisis and high energy prices. This has led to a huge spike in certain energy-efficient home improvements. The home improvement market is a lot different from what it was before the pandemic.

So, which home improvement projects have skyrocketed over recent years? Let’s take a look below:

Solar Panel Installations

The biggest change we can see on the BarbourABI Home Improvement Index 2024 is the number of solar panel installations. The change in applications for this type of work was up 223% from 2019 to 2023.

So, why are solar panel installations surging at the moment? First, the escalating costs of traditional energy sources are a huge factor. As gas and electricity prices rise, the appeal of generating free, clean electricity from the sun becomes increasingly strong for households and businesses who are seeking to reduce their energy bills and gain greater control over their energy expenditure.

Government support also plays a big role in this upward trend. Initiatives such as government grants, the Smart Export Guarantee, and the temporary 0% VAT on solar installations make solar a much more financially viable option. The UK government is also pushing for net zero over the coming years, and these energy targets further incentivise solar panel installations across the country.

Beyond the economic advantages and policy support, a growing environmental consciousness is also a significant factor. More and more people are now recognising the importance of reducing their carbon footprint and are drawn to solar panels as a way of contributing to a more sustainable future. Adding to this, the decreasing costs of solar technology are another driving factor.

All of the above factors together collectively explain the significant increase in solar installations across the UK.

Insulation

Another home improvement that has boomed over the past few years is the installation of new insulation in homes, which has seen an application increase of 130% between 2019 and 2023. This home improvement continues to be very popular and shows no sign of slowing down, particularly due to the rising costs of heating our homes.

With our heating bills now soaring, homeowners are recognising insulation as a vital measure to help minimise heat loss and achieve significant long-term savings. Effective loft and wall insulation can significantly reduce energy consumption, making our homes much more affordable to run.

Government incentives are also playing a key role here. Schemes such as the Great British Insulation Scheme and ECO4 provide financial assistance, including grants and even free insulation for eligible households. Also, new regulations for minimum EPC ratings for rental properties are driving landlords to invest in insulation upgrades.

Beyond the economic incentives, the growing environmental consciousness is also motivating homeowners to improve their homes’ insulation. Reducing energy demand through better insulation is a direct way that homeowners can lower their carbon footprint and contribute to the UK’s net-zero targets. Well-insulated homes also provide enhanced comfort as they help to maintain consistent temperatures and reduce problems such as damp and condensation. This leads to much healthier living environments.

Despite the financial pressures of the cost of living crisis, insulation is increasingly viewed as an essential investment with very clear benefits in terms of improved comfort and reduced energy bills. Government support plays a crucial role in making these upgrades more accessible. As the UK continues to prioritise energy efficiency for both economic and environmental reasons, the trend of increased home insulation renovations is set to continue.

Home Offices

Next on the list is home offices, which have seen an increase of 126% between 2019 and 2023. The demand for home offices began during the pandemic when many more people began working from home than ever before. This led to more people needing a dedicated workspace within their homes, driving the surge in home office renovations.

These renovations may have originally been just temporary solutions during the pandemic in spaces such as spare rooms or corners. However, remote work and hybrid work continue to be extremely common, leading to a demand for more permanent and functional home office spaces. This has led homeowners to invest in more significant renovations, such as converting spare bedrooms, lofts, or even building extensions to accommodate a dedicated office space. Features such as adequate lighting, soundproofing, ergonomic setups, and reliable internet service are big priorities in these types of renovations.

Self-employment has also seen a huge increase, which has further led to an increase in the need for home offices. Another factor driving these trends is people's desire to stay in their current homes rather than moving to somewhere larger. This is mostly due to the convenience and costs of moving to a larger property to gain office space, which outweighs the investment in renovating their existing home. Additionally, a well-designed home office can also add value to a property.

While there may be some regional variations, with areas like the West Midlands showing a particularly high interest in home office installations (26% planning to install a home office), the overall trend shows a fundamental shift in how many people in the UK now work. As remote work and hybrid work models continue to persist, the demand for home office renovations is likely to remain a significant aspect of the home improvement market in the UK.

Why These Projects Are Taking Off

Now that we know the three main home improvement surges, it’s time to take a closer look at the reasoning behind these changes.

Post-COVID Lifestyle Changes

Since the COVID-19 pandemic, the UK employment market has seen a huge rise in people working from home. With homeowners spending much more time at home, they may feel more inclined to perform home improvements to make their home look and feel more pleasing, not only as a living environment but as a work environment as well.

More time spent at home gives a pressing need for the home to feel more comfortable, so this can explain the rise in insulation installations to make it easier to keep the home at a comfortable temperature. Home office spaces are important for those working at home, so this explains the rise in home office installations. Also, with rising energy costs, people who are using their home’s electricity more when working at home may wish to save money by investing in solar panel technology.

The Chartered Institute of Personnel and Development (CIPD) reports that their recent Labour Market Outlook survey found that the number of people working from home is still widespread. Almost half (41%) of employers allow hybrid working with formalised policies in place. One in five (19%) employers also have informal practices between managers and employees, with a modest proportion (15%) who believe they are currently in the testing and learning stage. This shows that there is a huge proportion of workers who are now working from home, a substantial increase from the days gone by.

The increased time spent at home has also heightened the focus on overall home wellness. This includes creating comfortable, energy-efficient living spaces. This also led to an increase in certain other home improvements, such as improved ventilation or natural lighting.

Energy Prices & Efficiency

Not only are we currently in a cost-of-living crisis, but energy prices are also increasing at an unprecedented rate. At this time, homeowners are more desperate than ever to save money in any way possible. This is likely one of the leading incentives for homeowners to want to invest in solar panels and insulation to help save as much money as possible on energy bills. Both of these renovations may be costly upfront, but they will lead to significant long-term savings.

According to a survey carried out by the Office for National Statistics, around 4 in 10 adults (41%) who pay energy bills have found it somewhat difficult to afford them. The survey further discovered that 44% of adults in Great Britain are now cutting down on their fuel, such as gas or electricity, usage at home because of the rising cost of living.

The focus on efficiency extends to other upgrades, such as double or triple glazing, to prevent heat from escaping through windows or doors. The increasing interest in heat pumps, often requiring good insulation to operate efficiently, further contributes to the renovation market. Homeowners are looking at a holistic approach to energy efficiency, often combining insulation with other green technologies.

Homeownership Pressures

Buying a new property is often out of reach due to high mortgage rates and limited housing stock. According to research by Barclays Bank, six in ten renters think that it would be impossible to buy a home without an inheritance or loan from a family member.

For those who already own their home, renovations are much more appealing than moving due to the high costs. A combination of factors, including high property prices, rising interest rates, and the general costs associated with moving (estate agent fees, stamp duty, legal costs, etc), is making many homeowners choose to improve their existing properties rather than move.

The "improve, don't move" trend channels investment into renovations that enhance current living situations, including energy-efficient upgrades and creating functional workspaces.

Financial Support

Government grants and schemes such as the Great British Insulation Scheme and ECO4 provide crucial financial support for energy-efficient upgrades like insulation and sometimes even contribute to the installation of renewable technologies. These schemes lower the upfront costs and make these renovations more accessible.

Lenders are also increasingly offering green finance options or incorporating energy efficiency improvements into mortgage products or home improvement loans. This financial support can make larger projects, like installing solar panels or comprehensive insulation upgrades, more feasible for homeowners.

Expert Insights

Industry professionals are reporting a high demand for renovations that focus on energy efficiency, technology integration, and smart design. The FMB’s State of Trade Survey shows that home renovation contractors are seeing high numbers of requests for home improvements, renovations, and energy-efficient upgrades.

According to Yahoo! Life, there are several home renovations that are set to dominate the future of 2025 and beyond. They spoke to professionals to find out which home improvements are likely to be the most popular moving forward.

The quote obtained by them below shows the importance of investing in your property, not only for your own comfort but as a way of investing in your future. With property prices rising and costs in all other areas increasing, it’s important to choose home improvements that provide you with a good return on investment.

“Your home is not only a sanctuary and safe place, but it is first and foremost a potential investment in your future,” says Phyllis Harbinger, FASID, NCIDQ, CID, a professional interior designer, strategy coach, author, and owner of Design Concepts/Interiors, LLC (DCI Studio) in Greenwich, Connecticut. “When deciding on a home improvement, I suggest researching which enhancements will actually give you the highest return on investment (ROI).”

Experts are seeing the following home improvements as being very popular in the future:

• Kitchen Remodels
• Bathroom Renovation
• Outdoor Living Space Enhancements
• Smart-Home Features
• Energy Efficiency Upgrades

It also seems like heat pumps will be a big home improvement over the next few years. These are already in high demand. However, it seems that they are set to accelerate in popularity as the UK moves towards the net-zero targets. The UK government is currently providing incentives for heat pump installations.

As more homes install solar panels and energy prices remain volatile, the demand for battery storage solutions is predicted to increase substantially.

Additionally, a growing emphasis on environmental sustainability is expected to drive a demand for eco-friendly building materials, reclaimed materials, and renovation practices that minimise the environmental impact.

The Outlook for 2025 and Beyond

Market forecasts and trade body predictions suggest a continued and potentially evolving trend in the UK home renovation market.

There are several trends that are expected to continue. Firstly, energy efficiency will remain paramount. With energy prices expected to stay relatively high and the UK committed to net-zero targets, the demand for insulation, high-performance glazing, and heat pumps is forecast to remain strong. In addition to government help with funding, these are expected to remain strong.

Government statistics reveal a significant 52% increase in the number of Government-supported heat pumps installed in 2024 compared to the previous year.

Home offices will continue to be a big part of the home renovation market. While the initial rush for basic home office setups may have slowed down, the demand for well-designed, functional, and integrated home workspaces is expected to continue.

As hybris working solidifies, homeowners will invest in creating more permanent and comfortable office environments. Aviva’s How We Live report from February 2025 found that 26% of homeowners planning changes in the West Midlands prioritise installing a home office, highlighting the regional importance of this trend.

“Improve, don’t move” will also persist. High property prices and the costs associated with moving are likely to keep the “improve, don’t move” trend alive. Aviva’s report also states that almost seven million UK homeowners plan to renovate in the next two years.

The integration of smart home technologies is predicted to become even more prevalent. A growing environmental consciousness will likely drive demand for more sustainable renovation practices and materials. Also, homeowners will likely look to certain home renovations that focus on health and well-being at home.

While the unprecedented surge in certain home renovations during the peak of the pandemic may be slowing down, underlying drivers of energy efficiency, evolving working patterns, and the desire to improve existing homes suggest a resilient home renovation market in the UK for 2025 and beyond.

The focus is likely to shift towards more sophisticated, sustainable, and technology-integrated upgrades that offer long-term value and align with changing lifestyles and environmental concerns.

The Barbour ABI Home Improvement Index 2024 highlighted that UK households collectively invested £60 billion in repairs, maintenance, and improvements in 2021-2022, demonstrating the significant scale of this market.