With the cost of moving house in London now averaging over £30,000 according to data by the reallymoving, more homeowners and buyers in London are choosing to renovate rather than relocate - and they’re turning to short-term finance to make it happen.
Cost Pressures Prompt A Shift in Strategy
According to Reallymoving’s 2024 figures, the average cost of moving in the capital has reached over £30,000 in upfront costs. This is more than double the national average of £13,978.
Combined with average London house prices still above £510,000 (ONS, March 2025), high interest rates and increased stamp duty thresholds, the financial barrier to moving is higher than ever.
In response, homeowners are investing in extensions, loft conversions, and modernisation projects rather than taking on the financial burden of a move.
A 2025 Houzz survey of over 2,500 UK homeowners found that 42% prefer to renovate rather than move, with affordability, emotional attachment to their neighbourhoods, and the lack of suitable homes on the market emerging as reasons why.
A City of Hidden Potential
The trend is particularly visible in London’s fringe zones, from Walthamstow to Crystal Palace, where period homes often come with untapped square footage.
From disused box rooms to unconverted basements, residents are transforming these areas into home offices, guest rooms, and open-plan living spaces.
Local councils across boroughs such as Lewisham, Southwark, and Hackney have also seen an uptick in planning applications for single-storey rear extensions and loft conversions since late 2023, driven by changing post-pandemic lifestyles and hybrid working habits.
Financing the Fixer-Uppers
To fund these projects, many Londoners are turning to quicker and more flexible forms of borrowing. London bridging loans for example, have become a popular tool for those needing funds fast.
According to Checkatrade, you can expect to pay between £43,530 - £110,350 to renovate a 3-bed house. And the value it adds to the property is significantly more. So it's no surprise that Londoners are getting savvy when it comes to funding.
A Shift in How London Lives
Beyond economics, the move to renovate is also cultural.
With the post-covid work from home mentality still present, Londoners spending more time at home than ever before. Because of this, spaces are being renovated for better functionality and comfort.
And as property listings continue to fall short of buyer expectations, especially in family-friendly zones like Muswell Hill, Clapham and Dulwich, improving an existing home is increasingly seen not just as a Plan B, but as the smart first choice.
Looking Ahead
As Londoners continue to navigate a high-cost housing market, renovation is becoming a the pragmatic choice, offering a way to improve existing living space, increase property value, and avoid the financial burden of moving.
With flexible finance options becoming more mainstream, more homeowners are choosing to unlock the potential in their current homes, rather than move elsewhere.
From loft conversions in Lewisham to kitchen extensions in Ealing, the fixer-upper era is well underway, and it's changing the way the capital lives, invests, and stays put.