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 a report by Reuters revealed.
It comes following the latest Nationwide House Price Index release which found UK house prices remained flat in June while annual growth slowed to 2.2%.
But the trend has also been noticed by second mortgage broker, Loans Warehouse, which said the number secured loans completed for home improvements increased by 14% in the second quarter (Q2) of 2026 compared with Q1.
It found more homeowners were looking 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.