In today’s property market, many borrowers are rethinking what homeownership means. Amid shifting lifestyle expectations and mounting affordability pressures, more people are seeking out homes with potential.
By that I mean properties they can improve over time, rather than ready-made turnkeys. Increasingly, buyers are looking not just for somewhere to live, but for homes they can invest in, shape, and grow with.
Recent research from B&Q’s The Way We Live Now report highlights this trend. Of the 3,000+ homeowners surveyed, 61% said they plan to stay in their current home for at least five more years. Nearly half (49%) have already lived in the same property for over a decade. For this group, and for an emerging cohort of renovation-minded buyers, property is not a short-term move, it’s a long-term project.
These buyers are drawn to homes that may need updating but offer the space, location, or layout potential to evolve with their needs. Whether it’s remodelling a dated kitchen, converting unused attic space, or adding an extension, renovation is increasingly seen as a practical route to creating a ‘forever home’ in manageable, phased stages.
THE ALLURE OF STAYING PUT
This shift is as much financial as it is emotional. The rising cost of moving, including agent fees, legal costs, and higher stamp duty, has made the idea of staying put or buying to improve more appealing. From April 2025, stamp duty bills will increase substantially for many buyers, with the levy on a £500,000 property jumping from £3,750 to £10,000. In this context, investing in renovations rather than relocation becomes a more cost-effective strategy.
A well-executed improvement project can increase the worth of a property over time, offering potential for equity growth while enhancing daily life. Many of today’s buyers are adopting a developer’s mindset, even if they intend to live in the property long term.
This evolving mindset calls for equally flexible support from lenders and advisers. As more people look to buy properties with renovation potential, there is growing demand for finance that enables this ambition. Whether through capital raising, remortgaging, or bespoke renovation-focused products, borrowers need solutions that match the pace and scope of their improvement plans.
SUPPORTING DEMAND
Recognising this shift, we recently launched our Home Renovation Mortgage, designed to support borrowers making non-structural upgrades post-purchase. But the real story here is the borrower. These are individuals and families thinking creatively and long-term about their housing choices, people who are willing to take on a bit more work now to enjoy greater value and satisfaction down the line.
For intermediaries, this represents an opportunity to engage more deeply with clients’ goals. Buyers targeting renovation projects need tailored advice, not only on mortgage options but also on timing, budgeting, and how their future plans may affect lending criteria.
By helping clients understand the full picture – from acquisition through to the types of improvements made, the potential costs involved and the available funding options to make these changes – advisers can play a pivotal role in supporting smarter, longer-term housing decisions.
In today’s market, the journey doesn’t end at the front door. For a growing number of borrowers, that’s where it begins.
