Despite a renewed property market and improved optimism around mortgage rates and affordability, many homeowners are choosing to improve rather than move, according to new research from Santander.
The lender has found that three-fifths (57%) of homeowners who considered moving in the last 12 months have put those plans on hold, with nearly a third (31%) opting to renovate instead.
The cost of moving was a key factor when homeowners were asked why they decided to stay put. Homeowners cited high moving expenses, such a solicitor’s fees and estate agent costs (30%), a belief that renovating is more affordable than moving (27%), and the increase in stamp duty (16%) - though one in five (20%) said they would be more likely to buy a new home if stamp duty reduced from 5% to 3%.
Away from cost, more than half (54%) of homeowners cited renovating as simply being less stressful than moving, while one in five (22%) said there weren’t enough properties on the market that suited what they were looking for.
Homeowners are also spending more on their home improvements, with the average budget allocated to renovation projects in 2025 being £15,788 — almost three times the £5,600 homeowners said they had planned to spend in 2020.
Data from 2024 also showed that 90% of all further borrowing applications to Santander, where mortgage holders take out additional loans, were for home improvements, while half of all remortgages were also to fund home improvement plans.
Data provided by construction experts Barbour ABI, and analysed by Santander, found single-storey rear extensions were the most common renovation project in 2024 with 121,061 applications, while planning applications for home offices have plummeted to 1,700, nearly half the 3,000 seen during the home working peak of 2021.
But it’s not just large-scale extensions that are on the rise — smaller renovation and DIY projects are booming too. According to Santander, 58% of homeowners have already taken on DIY work in 2025, and 42% of them tackled a project in 2024.
David Morris, head of homes at Santander UK, commented: “Despite a significantly healthier property market than in recent years, the rising costs of moving and recent increases to stamp duty are leading many homeowners to consider their options before packing up. Whether it’s adding a bit more space or reshaping what’s already there to make it perfect, we’re here to help people invest in the places they already call home and create their perfect property.”
