Seven million UK homeowners plan to renovate with average budget of £14,000 in next two years

Almost seven million UK homeowners plan to renovate their homes this year and intend to spend more than £14,000 each on average over the next two years, according to Aviva’s latest How We Live report.^[1]

Renovation plans are particularly popular among younger age groups with close to three quarters (73%) of Generation Z (aged 27 and under) and two thirds (65%) of Millennial (aged 28-43) homeowners planning to carry out work.

The report reveals that more than one in 10 UK adults live with their parents, and that multigenerational living is one of the factors driving an increase in UK home extensions.

Renovation plans reflect modern working practices

Among those homeowners planning renovations, one in five plan to extend the layout of their homes over the next two years. Within this group, a quarter (25%) planning changes attribute their plans to home working practices. This includes fifteen per cent of those who plan to create a home office, while more than one in 10 (13%) want to create space for a business venture or side hustle.

Londoners lead the way in creating larger living spaces

The report finds that the reasons for carrying out property renovations vary, depending on region. Homeowners planning changes in the West Midlands place the highest priority on working from home arrangements, with 26 per cent planning to install a home office – 11 percentage points higher than the national average.

In contrast, renovating homeowners in the capital are most interested in adding more space to their properties, with a quarter (25%) planning to extend the overall size of their property — four percentage points above the national average.

Twenty-six per cent of London homeowners who intend to renovate also plan to add another bathroom, toilet, or shower room, a nine-point increase compared to the national average of 17%.

The report suggests that the need to house relatives is one explanation for Londoners’ desire to increase space. Twenty-eight per cent of renovators in the capital plan to add more rooms or space to accommodate multigenerational living — a figure that exceeds the national average by 11 per cent.

Meanwhile, Scottish homeowners are more focused on making their homes beautiful, with three fifths (61%) planning renovations to enhance the appearance of their properties, surpassing the national average by seven percentage points.

Multigenerational living sparks demand for space

Aviva’s latest How We Live report reveals that more than one in 10 (11%) UK adults stated that they live with their parents, step-parents or in-laws and that multigenerational living is a significant factor for homeowners seeking to expand their space.

As expected, 16 to 24-year-olds are most likely to share a home with their parents (38%). However, so do 16% of 25-44-year-olds, as well as one in 11 (9%) of Generation X (45-54-year-olds).

The report also presents evidence that parents are moving in with their children. Almost three in 10 (29%) 25-34-year-olds cite this as the reason for making renovations intended to create space. The research suggests these moves are related to financial circumstances and a desire to live with extended family.

Across all age groups, one in five (17%) UK homeowners point to multigenerational living as the reason for plans to increase their amount of space. This increase might also explain why 17% of those reconfiguring their home’s layout also plan to add more bathrooms, toilets or shower rooms.

Young homeowners driving energy efficiency improvements

UK homeowners are also planning renovations to make their homes more energy efficient. More than half of those surveyed (56%) said they had made energy efficiency improvements during the last two years. Of those that did not, more than half (55%) are planning to do so.

Younger homeowners, including Generation Z and Millennials, continue to lead the way, with 86 per cent stating they had made home improvements in the last two years, focused on improving energy efficiency.

Hazel Johnson, Director of Home and Motor Claims, Aviva, says: “The findings from our latest How We Live report highlight a significant trend towards creating more adaptable and energy-efficient living spaces, reflecting modern working practices and the prevalence of multigenerational living.

“While it’s exciting to see the ambitious plans people have for their homes, it’s crucial that residents are aware that such changes can impact their home insurance. Whether people are creating space for family members or setting up home workspaces, it’s important that people inform their provider about any alterations to the number of people living permanently in their home or structural changes made. Reviewing their policy and making any necessary changes to cover can help ensure homes and their contents are adequately protected in the event something goes wrong, providing valuable peace of mind for everyone under that roof.”

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View the 2025 How We Live report.

References:

^1. _{The underlying research was conducted by Censuswide between 8 and 15 November 2024, via a survey of 4,000 nationally representative respondents across the UK (aged 16+). Censuswide abide by and employ members of the Market Research Society, which is based on the ESOMAR principles, and are members of The British Polling Council. [↑]}

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