Home renovation planning hits a decade low

Rising construction costs and weak house price growth are putting buyers off renovation projects — and the numbers from Savills back it up.

One of the joys of buying a home is thinking about what you can do with it to put your mark on it. Whether that's a simple decoration choice with a variety of paints and wallpapering, or the more ambitious plans with remodelling, extensions and significant renovations of, for example, the kitchen or bathroom, it's all part of the decision process for whether to put in an offer for a property.

And one of the necessities to help make that decision comes with the ordering of an appropriate level of survey to understand the current condition and stability of the building you are planning on buying. Necessary remedial work might preclude a major project, or at least mean postponement for a significant time, until you can save enough to afford it.

Savills has carried out analysis on the property market and identified a downward trend in renovations and planning consents. Reported in Estate Agent Today, the analysis reflects the weakness of house price growth coupled with increasing costs of construction. Indeed, the latest Halifax House Price Index shows that the price of properties is slowing annually, having dropped 0.5% in the last month.

Planning consents for home improvements have fallen to their lowest level in a decade. Separately, planning applications for home improvements dropped below 150,000 for the first time in 15 years. The figure is 27% lower than the average seen over the last decade and 3% below the previous low recorded in 2024, despite more housing transactions taking place.

Looking across the years, on average there would be one application for renovations or extensions in every five home sales, but that has fallen to one in seven, with indications that this downward trend is likely to continue.

The figures also show that the gap between those who are moving and those who choose to extend or improve their home is at its widest in recent history, pointing to the increased costs of building and construction materials coupled with the rise in the cost of borrowing.

Lucian Cook, head of residential research at Savills, said of the findings:

"Historically, there has been a strong correlation between transaction volumes and levels of home improvement.

Buyers typically invest in upgrading properties soon after completing a purchase, but persistent cost pressures and weak house price growth prospects have made it more difficult to justify taking on these projects.

That means demand has been focused on turn-key properties."

One other interesting finding from Savills' analysis is the regional disparity: while every region in the country has experienced a drop in such activity, London and the South-East have held up strongest, while the North-East saw the most significant decrease in renovation activity.

Cook puts this down to the straightforward economic reality that the higher the property price, the more financial sense it makes to extend or renovate, as more value will be unlocked as a consequence. Where less value will be added, the relative construction costs make such activity economically unviable.

Part of the problem is the trepidation many buyers are feeling as a result of wider geopolitical and economic uncertainty. Inflation is going up in the UK and disposable income is dwindling for many potential homebuyers. Until construction costs come down and the broader economic picture improves, this situation looks set to continue for some time yet.

Whether you're planning minor adjustments to a property or a major overhaul, it is important to commission a survey carried out by an experienced chartered surveyor so that you know what work the property needs and how much it is likely to cost.

Surveyor Local will connect you to the best professional advice through our nationwide panel of chartered surveyors, all of whom are members of RICS, ensuring the survey you receive is always professionally delivered.

Call our friendly team on to get your no-obligation survey quote started, or use our quick quote tool to get an instant quote by email.