Home improvement applications across England and Wales have declined by 12 percent over the past three years, according to recent planning data. The figures, collected by Planning Portal—which processes approximately 95 percent of planning applications in the region—show a drop from 180,989 household applications in 2023 to 159,061 in 2025. The largest decreases were recorded in Wales, down 15 percent, while London and the northwest saw smaller declines of 9 percent each.
Industry experts suggest that rising costs for materials and labour are significant factors driving this trend. Since 2021, material prices have increased by 35 percent and labour costs by 21 percent, meaning a home improvement project estimated at £50,000 five years ago would now cost around £65,000. This has prompted homeowners to reconsider extensive renovations, balancing the expense of upgrading against the option of moving.
London remains the busiest area for home improvement with the highest rate of applications, approximately seven per 100 homeowners, compared to an average of 3.9 across England and Wales. Analysts note that Londoners often prefer to invest in expanding and improving their current homes rather than relocating, as the economic benefits are substantial. For example, the average London home price is £550,037, with stamp duty fees alone nearing £17,500—close to the median £20,000 renovation cost reported in a recent survey.
Seasonally, spring maintains its status as the most popular time for submitting home improvement plans, with a notable dip observed during summer. The summer of 2025, marked as the hottest on record in the UK, saw a 23 percent reduction in planning applications compared to the previous year, indicating that extreme weather may be a deterrent.
Extensions remain the most common type of home improvement, though their popularity has slightly declined—now representing 71 percent of project keywords, down from 73 percent in 2023. London leads in applications for larger extensions, with over 18,500 submitted since 2023 under "prior approval" rules that permit rear extensions of up to 8 meters if there are no objections from neighbours.
Not all homeowners opt for large additions, as demonstrated by a family in Highgate, north London, who extended their historic 450 square meter cottage by just 20 square meters. Designed by Finkernagel Ross, the project focused on enhancing clarity and spatial flow rather than size, using distinctive Cor-Ten steel to complement the original structure. The homeowners described the renovation as transformational but demanding, emphasizing the detailed decision-making involved.
Loft conversions account for about 6 percent of home improvement keywords, with London exhibiting the highest share at 9 percent, followed by the southeast at 6 percent. Of note, a 2020 initiative allowing homeowners to add up to two storeys without full planning permission has seen limited uptake. Since 2023, only around 1,600 applications have been made nationwide, primarily due to strict eligibility criteria. Properties in conservation areas, national parks, or listed buildings are excluded, and approvals require neighbour consent.
In one example from Hackney, east London, a loft conversion added a bedroom, study, and bathroom clad with sustainable tiles made from recycled plastic, integrating well with existing slate roofs. Experts advise treating features like loft stairs as opportunities to enhance living space rather than mere necessities.
Overall, these trends suggest a more cautious and considered approach by homeowners, who are focusing on making existing spaces function better amid rising costs and shifting market dynamics.