The term, ‘Don’t move, improve’ has come home to roost over the past year. And what’s more, there are some fascinating reasons for the sudden upswing in home renovation projects across Britain.

While activity in the UK housing market has cooled, home renovations have soared. In 2024 alone, median spend on home renovations rose by 26 per cent. In the under-30s, the trend was even more pronounced, with home renovation projects doubling over the period.

So what’s driving the surge?

There have, it’s fair to say, been some pretty far-reaching changes in the wider world that few could have foreseen just five or six years ago. 

One big factor is the rise of remote working since the Covid-19 pandemic. With 28 per cent of us now hybrid working, Britons with degree or above 10 times more likely than others to work remotely, and workers between 30 and 49 years old most likely to work from home at least part of the time according to the Office of National Statistics, our home environment has never been more important.

“Suddenly, for a lot of people, the home became less of a place to go back to after the office, and more of a multi-purpose hub,” says Premier Banking Manager Kate Kowalska. “A lot of people began working from home more following the pandemic, so getting their houses just right to serve dual functions – as a home and an office – suddenly became a much bigger priority.”

Add to that the fact that 49 per cent of working people in the UK now freelance or contract working – and for a large number of them, having an office space that looks and feels professional enough to chair virtual client, colleague and supplier meetings from. That means well-lit, dedicated spaces with clear backgrounds and minimal noise disturbance. In the past, that would have been something people only considered adding or adapting onto a property in the event of the arrival of children or to accommodate elderly relatives. But for an increasing number of us, creating a space like this is a remote career necessity.

But it’s not just changing work patterns driving the renovations, says Kowalska. “During the Pandemic, a lot of us sensed the change, and seized the opportunity to move further from commuter centres,” she says. “But people are also building in more space to expand their homes as family bases.”

Rising cost pressures on the young mean that they are forced to live in the family home for longer. The proportion of 25-35-year-olds living at home has risen by a third over the past 20 years – and the pressure to make sure everyone has space to live, relax, play and socialise can be intense. That means expansions upwards, into loft conversations, downwards into basement living spaces, and outwards, as extensions and annexes.

But these changes bring more with them. They mean that things like natural light, utilities, thermal insulation and even soundproofing become not just crucial, but more cost-effective.

Sure enough, energy efficiency is driving a large chunk of home improvements. “Energy is a concern, so people are looking into sustainable energy options like solar panels and heat pumps,” says Kowalska. UK government statistics show a 52 per cent increase in government-funded heat pumps installed in 2024 alone. 

Ultimately, the decision about improving, not moving, is often driven by location. If you love where you live, but just wish the house was different, then it makes sense. Location still guides the overall strategy behind most moves, so it figures that it would guide strategic thinking about staying put and improving too.  

It’s also possible that history will show we’re witnessing a shift in how a home is configured – for example, with the traditional suburban model of a commuter belt dormitory adapting further out, to home layouts that incorporate offices as central, in the same way we currently think about kitchens, bedrooms and living rooms.

Of course, the quality of the existing home matters too. The fact is that 53 per cent of us live in pre-1940 housing stock, and house prices in parts of the country remain prohibitively high for many. It’s not hard to see why many of us are choosing not to move, but to transform the space we are currently in. 

Crucially, this strategy of creating a dream home in your current property, rather than moving in search of one, seems to make us happy.

Ultimately, renovating a home is a big project – whether it’s a strategic decision or a labour of love – so it’s no surprise that a clear majority of own-home renovators plan to live there for the long haul, with 60 per cent of us planning a further 11 years or more in our newly renovated homes. “Plus of course, renovation can add significant value to a home when you come to sell, too,” says Kowalska. “So there’s a certain amount of long-term or investment thinking to this too.”  

Whether you’re looking for extra space or want to give your home a new lease of life, what should you be thinking about? Kate Kowalska, NatWest Premier Banking Manager and Financial Adviser of the Year 2024 has compiled some of the key questions to ask yourself.

Home improvements come at a cost – and you might have to live in a building site for a while – but they can add value to your home. The Office for National Statistics has created an extension calculator to work out how much value it could add, for instance. It gives an approximate number using the average values of houses across local authority areas. There may be other factors it doesn’t take into account, but it gives you a rough idea.

Under ‘permitted development’ rules, you might not need planning permission if the extension doesn’t exceed 50 per cent of the land your house sits on. But this is subject to various restrictions, such as changing the height of your house, so make sure you consult permitted development rules before beginning a project. You may also want to consult an architect early on. Period homes with historical or architectural significance could be protected by the listed buildings scheme, so you’ll need the agreement of local planners before making any changes. 

The UK Government provides guidance on when planning permission is required. Keep in mind that applications can take up to eight weeks.

If you’re considering making you home more energy efficient, you could be eligible for government funding. This is offered for the installation of heat pumps, solar thermal systems, insulation, and double or triple glazing. Doing so isn’t just good for the environment; it could save you money and may increase the value of your property.

There are often costs to consider: design, planning, construction, fittings and finishes. Mybuilder.com estimates the basic price of building an extension in the UK is between £1,100 and £1,400 per square metre in 2022 (not including VAT). There are lots of ways you could potentially fund this and a conversation about plans and goals with your Premier Manager could help you explore what might be best for you.