According to research, 2025 has seen – and will continue to see – homeowners across the nation choosing to stay put in their current homes for longer, and renovate, instead of relocate. We investigate the reasons as to why, and what you need to consider if you find yourself in this predicament…

To renovate or to relocate, that is the question; and I’ve asked myself this, very recently, too. After viewing a few doer-uppers with my husband in our local area, we decided it would be much more cost effective, and stress free, to improve our current home rather than move.

But it appears I am not alone; recent statistics imply that homeowners simply cannot afford, or don’t see the value in, moving right now. For instance, according to a report by home and garden PR agency Unhooked Communications, one in five homeowners would like to move house, but find it financially unfeasible – an increase from 13% two years ago.

Homeowners are staying put

Instead, as a nation, we’re putting plans to move on hold, and are investing in our current homes. The report found that 54% of homeowners are intending to make home improvements over the next 12 months, with the most popular plans including decorating (31%), installing a new bathroom (11%), creating an outdoor dining and entertaining area (11%), and installing a new kitchen (11%).

Another report, namely B&Q’s annual The Way We Live Now 2025, affirms these findings. It found some 40% of homeowners are adapting their current home to meet their changing needs instead of moving up (or down) the property ladder.

And it’s not just painting walls and buying home décor; 40% of homeowners plan to radically reimagine the space in the future, to accommodate changing household needs (flexible working arrangements and ‘boomerang kids’ being the two main factors) – with 25% of people carrying out major building works such as a side-return or an extension.

To reiterate these numbers, findings from a Houzz survey, which asked more than 1000 homeowners about their home renovations in 2024 and plans for 2025, showed that more than half of them are planning to decorate (60%) and almost half are planning to renovate (49%) this year. (I appreciate there’s lots of percentages just bandied about there, but you get the gist.)

So, what’s influencing this change?

Claire Gamble, managing director of Unhooked Communications, explains, “With the cost-of-living crisis, high-interest rates and a slower property market, many homeowners feel trapped. They’re unable to move but are keen to make their current homes work better for them.”

However, if you are in the market for a new property, things might be on the up. Speaking to Daniel Chard, partner at national conveyancing solicitors Bird & Co, he says, “Although mortgage rates remain higher than many buyers were used to over the last decade, expectations of further interest rate cuts (the latest being in July, when the Bank of England lowered the base rate from 4.25% to 4%) may prompt lenders to lower their rates in the months ahead.”

These expected cuts could then create a valuable opportunity for buyers to lock in more favourable deals later this year. “At the same time, house prices are still rising, but the pace is slowing,” he continues. “Annual growth reached 1.6% in March 2025 – higher than a year ago, but down from late 2024. What’s more, with more properties coming onto the market, price pressures are easing slightly – and that’s good news if you’re looking to move. Modest price growth is expected over the next six months, offering a relatively stable window to buy without the urgency of fast-rising prices.”

Although, it’s not just interest rates you have to be aware of, as Phil Spencer, property expert and founder of property advice website Move iQ, notes. “In some ways, moving is the easier option: you have the fun and excitement of searching for a new home that better suits your needs, and it’s a chance to make a fresh start. But it’s rarely the cheapest option. There are plenty of costs involved in moving, from the stamp duty you pay to HMRC, to the survey and legal fees, and the cost of removals; so you’ll need to factor all these into your decision.”

He continues, “However, with interest rates coming down, a move now could be an opportunity to remortgage onto a lower interest rate than you currently have. Cheaper mortgages make properties more affordable, so if you combine your move with a remortgage onto a better interest rate you might even end up with a larger home while seeing little change to your monthly mortgage payments.”

Renovation costs

If the above has dissuaded you from relocating, I’m afraid to say renovating right now isn’t exactly ‘cheap’, either. “It’s worth noting that construction costs have risen significantly in recent years, driven by higher material prices, labour shortages, and increased energy costs,” says Daniel. “As a result, home improvement projects may no longer yield the same return on investment as they once did. That’s why it’s so important to get detailed quotes, allow for unexpected costs, and carefully consider how much value the work is likely to add.”

With all this in mind, I wonder what the experts are predicting for the rest of the year. I asked Emily Pickett, design consultant at Kitchens by Holloways, her thoughts. “There’s been a clear shift in mindset this year, largely driven by tighter budgets,” she says. “People are being more cautious with their spending, wanting to understand the full financial picture before diving into plans. Whereas in previous years there might have been more appetite to move and take on new ambitious builds, now the focus is often on maximising the potential of what they already have.

“We expect this trend to continue in 2025 and beyond – people are likely to keep weighing up the cost of moving versus improving, and in many cases, making their existing home work better for them will remain the preferred choice.”

While the economic climate surely is the major player in this deviation in attitudes, there is actually another reason people are choosing to stay at home. According to B&Q’s report, while 1 in 5 (19%) feel unable to move, the rest are planning to stay for positive reasons – with 58% saying they love their home.

“It’s great to see that more people are building deeper connections with their homes, and choosing to love and not list them,” says Graham Bell, CEO at B&Q. “They’re opting to stay where they are and embrace the idea of transforming and creating a home for life. We’re seeing homeowners have more confidence to undertake radical transformations.”

Of course, you’ll need to work with a builder or other tradespeople on the design, to ensure you’re not taking away a load-bearing wall, for instance, and to help you plan the practicalities. But as Phil sums up, “With no stamp duty to pay and no heart-wrenching house hunting required, changing the layout of your current home can give you extra space in a house you already love – at a lower cost than moving.”

With all this in mind, it’s easy to see why people are choosing to renovate, not relocate…

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