While Birmingham sees the highest demand, with 13.4% of secured loans going toward home improvement, London tops the list in spending, reflecting the capital's high property values and greater renovation costs. Projects such as loft conversions, extensions, and full-scale refurbishments are particularly common, often delivering a strong return on investment in a city where space is at a premium.
Search interest in “home improvement” has also surged, rising by 19% last quarter. In April 2025 alone, the UK recorded over 76,000 searches, signalling national momentum behind the improve-not-move trend.
Home Improvement Loans in the UK: Where Are People Investing the Most?
According to Pepper Money’s customer data, home improvement loans now account for 9.7% of all secured lending, with an average loan size of £33,795. Cities like Brighton (£44,548) and Manchester (£43,322) follow closely behind London in average loan size, showing that urban homeowners across the country are investing substantial sums into their properties.
| UK City | % of Loans for Home Improvements | Avg. Loan Amount (£) |
| London | 4.9% | 61,867 |
| Brighton | 4.9% | 44,548 |
| Manchester | 7.8% | 43,322 |
| Bristol | 6.0% | 37,614 |
| Leeds | 3.8% | 35,738 |
Note: Birmingham leads in volume (13.4%) but not in average loan value.
Renovation Projects with the Highest Returns
Popular projects include loft conversions, kitchen renovations, and energy efficiency upgrades—all of which can add significant value to a home. For example, a well-executed loft conversion could boost property value by up to 20%, equating to over £53,000 based on the UK’s average house price.
| Project Type | Cost Range | Estimated Value Added |
| Loft Conversion (bed + bath) | £27,500 – £75,000 | Up to 20% |
| Kitchen Renovation | £6,200 – £50,000 | 5–10% |
| Energy Efficiency Improvements | £10,000 – £15,000 | 5–10% |
| Garage Conversion | £10,000 – £20,000 | 10–15% |
Flexible Financing with Secured Loans
More homeowners are choosing secured loans to fund large-scale improvements without altering their mortgage. These loans offer greater flexibility—up to £1 million in borrowing with terms of up to 30 years, enabling homeowners to spread the cost more affordably.
Ryan McGrath, Director of Secured Loans at Pepper Money comments,“With mortgage rates remaining high and moving costs continuing to rise, more homeowners are choosing to stay put and invest in upgrading their current homes rather than relocating. At Pepper Money, we’re seeing a growing number of customers taking out secured loans to fund major renovation projects — from loft conversions to energy efficiency upgrades — that add both comfort and value.
Choosing how to finance a home improvement project is an important decision. The right approach can not only transform your living space but could also boost the value of your property. Whether it’s through remortgaging, taking out a loan, or using savings, it’s vital to find a solution that fits your financial goals and circumstances. Speaking with a mortgage broker or financial adviser can help you navigate the best path forward.
Depending on your situation, a secured loan may enable you to borrow anything from £5k to £1m with repayment terms of 3 to 30 years which means you can minimise your monthly repayments, with the amount available based on factors like your credit history, financial situation, and property equity.” Whereas you may find an unsecured loan is limited to £25,000 over 5 years which means you monthly repayments will be high.”