There is a clear divide in consumer spending on the home, with higher earners driving engagement over the past 12 months (85%). In contrast, budget-conscious consumers, impacted by rising costs, focus on value and smaller improvements. Only 67% of those earning £15.5K or less annually have spent on their homes in the past year.
However, recovery in the sector faces significant challenges. The backdrop of the cost-of-living crisis continues to strain budgets, prompting some to pause home-related spending altogether. Meanwhile, second-hand platforms are thriving, with 71% of consumers already purchasing – or interested in purchasing – home items second-hand. While sustainability makes these platforms appealing, they reduce demand for new products, pressuring traditional retailers to adapt to evolving consumer preferences.
Nevertheless, an uptick in the housing market, combined with planned stamp duty reforms, could stimulate home-related spending. New homeowners in particular are likely to invest in furniture and renovations as they personalise their spaces. Retailers can seize this opportunity by targeting movers with flexible payment options, such as BNPL schemes, making big-ticket purchases more accessible.
Consumers are increasingly focusing on their homes, with many planning to invest in living spaces in 2025. This trend is bolstered by a small rise in housing transactions, further stimulating demand.
Bridget McCusker, Research Analyst
For the purposes of this Report, Mintel has used the following definitions:
This Report looks at consumer attitudes towards spending on the home. This Report is an overview and looks at consumer priorities of buying for their homes and delves into the triggers for purchase. Broadly it will take in:
These are all topics that we cover in much greater detail in other home reports.
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