Homeowners are spending more on improving their properties than ever before, as many cut back on holidays, dining out and buying new cars in favour of investing in comfort and energy efficiency.
New research from Daikin suggests household upgrades are increasingly being viewed as a long-term financial and lifestyle priority despite ongoing economic uncertainty.
A poll of 2,000 homeowners found that, despite concerns around the economy, average spending has increased to £3,140 per year on home improvements – up from £2,870 in 2024.
And nearly a third (30%) plan to spend more again on home improvements in 2026 than they did last year, with homeowners sacrificing holiday plans (24%) and buying a new car (14%) in favour of renovations.
The findings indicate a growing focus on comfort and control over household energy use, with 67% shifting their finances towards home improvement projects. Nearly a third said they want greater control over energy bills, while 22% expressed concerns around energy security and 32% said they are frequently worried about gas and electricity price volatility.
The poll also found 63% consider investing in energy efficiency to be very important to them, to ‘futureproof’ their home against price volatility.
More than half (55%) said energy-efficient upgrades could increase the resale value of their property, while 43% are making changes specifically to appeal to future buyers despite having no immediate plans to move.
Alternative energy technologies are also becoming increasingly popular, with 47% of respondents viewing heat pumps and solar panels as worthwhile long-term investments. Around 14% said they have already installed alternative energy systems in their homes.
Lucy Gaby, residential marketing manager at Daikin, says homeowners are increasingly prioritising their living environment over more traditional luxuries.
“Recent increases to government support, including grants of up to £9,000 through the Boiler Upgrade Scheme, are important in making such options more accessible. This is in line with policies like the Future Homes Standard that are setting a clear direction for the future of housing, with new homes expected to be built around low-carbon heating and much higher energy efficiency standards.
“Creating an energy-efficient home not only boosts comfort but also helps manage rising energy costs and improve energy security. For those looking to take more control, starting with a heat pump and improving insulation can make a real difference. Speaking to a qualified installer is a good first step.”
The research also found improving insulation (35%), draught-proofing doors and windows (27%) and double or triple glazing (25%) were among homeowners’ top priorities.
Looking ahead, 46% said they would choose an energy-efficient home over a property requiring upgrades when buying in future, while 44% said they would be willing to pay more for a low-energy consumption property.
To find out more about the benefits of installing a heat pump, go to Daikin‘s website – www.daikin.co.uk/for-every-climate
