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EXECUTIVE SUMMARY
- Opportunities for the consumer trends, attitudes and spending habits for the home
- An opportunity for second-hand home offerings…
- …focusing on more than just price
- Affordable living redefining home dreams
- Multifunctional pieces are key…
- …retailers can focus on adapting these pieces to the changing needs of consumers
- Market dynamics and outlook
- Market size and forecast
- Market predictions
- Growth is anticipated to be consistent
- Home spending remains flat in 2024
- Housing market looks to rebound in 2025
- Graph 1: number of property residential transactions with a value of over £40,000 completed in the UK, 2019-24
- Households are cautiously optimistic about their financial prospects
- Graph 2: the financial confidence index, 2015-25
- What consumers want and why
- Consumer spending for 2024 is below pandemic levels
- Graph 3: consumer spending on the home, 2020 and 2024
- Over one third of consumers have spent £500 or less on the home
- Graph 4: levels of expenditure on the home in the last year, 2022-24
- Home purchases are driven by a multitude of factors
- Graph 5: triggers to purchase for spending on the home, 2022-24
- Plans for home spend remain consistent with 2023
- Graph 6: intentions to spend on the home in the next year, 2021-24
- Consumer spending on the home is driven by a variety of reasons
- Graph 7: current and future behaviours towards spending on the home, 2024
- Enhancing my living space shapes my purchasing decisions and lifestyle choices
- Graph 8: consumer behaviours towards the home, 2024
- Retailer activity
- Shoppers remain wary, opting to buy smaller more affordable home items
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MARKET DYNAMICS
- Market size
- The market remains subdued
- Graph 9: market size for consumer spending on the home, 2020-24
- Demand remains polarised
- Market forecast
- Growth is anticipated to be consistent
- But the worst is probably over
- Market segmentation
- Home spending remains restrained in 2024
- Consumers prioritise repairs and affordability over new purchases
- Decorating adds a feel-good factor that keeps consumers spending on the home
- Market drivers
- CPI inflation
- Graph 10: annual rate of inflation, 2023-24
- Housing market sees signs of recovery…
- Graph 11: number of property residential transactions with a value of over £40,000 completed in the UK, 2019-24
- …as anticipated stamp duty changes can strengthen spend on the home
- Leisure spending has been hit as mortgage holders look to cut costs
- Graph 12: steps taken to deal with higher mortgage costs in the last 12 months, 2024
- Home ownership rises amid record rent inflation
- Graph 13: English housing tenure, 2018/19-2023/24
- Recovery in consumer sentiment has slowed
- Graph 14: the financial wellbeing index, 2016-25
- Households are cautiously positive about the prospect of their finances
- Graph 15: the financial confidence index, 2015-25
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WHAT CONSUMERS WANT AND WHY
- Consumer spending on the home
- Consumer spending on the home is on a par with pre-pandemic levels
- Consumer spending remains flat for 2024
- Graph 16: consumer spending on the home, 2020-2024
- 2024 experienced softer spending on the home
- Energy efficiency remains important especially to parents
- Mortgage holders are the most active spenders on the home
- Graph 17: consumer spending on the home, by home ownership, 2024
- Decorating remains the most popular amongst all consumers
- Graph 18: consumer spending on the home, by length of time at current home, 2024
- Retailers can boost consumer confidence by making big-ticketed home expenditure more accessible
- How much they spend
- 38% of consumers have spent £500 or less on the home
- Graph 19: levels of expenditure on the home in the last year, 2022-24
- Financial situations influence home spend
- Graph 20: levels of expenditure on the home in the last year based on home ownership, 2024
- Home owners are spending more on the home
- Graph 21: levels of expenditure on the home in the last year, by home ownership, 2024
- Triggers to purchase
- Replacement and style are the main drivers for purchasing
- Graph 22: triggers to purchase for spending on the home, 2022-24
- Majority are spending on the home for a specific reason
- Younger consumers are purchasing for the home for a multitude of reasons
- Graph 23: triggers to purchase for spending on the home, 2024
- Financial situations influence home spending triggers
- Graph 24: triggers to purchase for spending on the home, by financial situations, 2024
- Intentions to spend on the home
- Plans for home spend remain on par with 2023
- Graph 25: intentions to spend on the home in the next year, 2021-24
- Housing market improvements can fuel spending
- As finances improve so do consumer intentions to spend
- Graph 26: intentions to spend on the home in the next year, by income group, 2024
- Recent home dwellers are more keen to spend on the home
- Graph 27: intentions to spend on the home in the next year, by length of time at current home, 2024
- Most important factors for upgrading the home
- Driving factors for home updates vary by demographics…
- Graph 28: most important factors for making updates to the home, by age and household income, 2024
- …younger higher earners prefer to keep up with technology
- Convenience means different things across different demographics
- Women want their spaces to relax
- Graph 29: factors most important when making updates to the home, by gender, 2024
- Current and future behaviours on consumer spending on the home
- Value-driven behaviours remains prevalent
- Graph 30: current and future behaviours towards spending on the home, 2024
- Consumers are savvy when it comes to spending on the home
- Younger consumers are savvy when it comes to spending on the home
- City dwellers have chosen a home retailer based on their online delivery options
- Graph 31: behaviours towards online delivery options for the home, 2024
- Higher earners invest in seasonal decor
- Graph 32: current behaviour towards seasonal decor, by income group, 2024
- Space is key for urban consumers
- Graph 33: current behaviour towards functionality when it comes to consumer spending on the home, by area of consumers reside in, 2024
- Graph 34: current behaviour towards functionality when it comes to consumer spending on the home, by area of consumers reside in, 2024
- Modularity is becoming increasingly important to spending on home items
- Social media drives young engagement for home spend
- Graph 35: behaviours towards buying home products after seeing them on social media, by age, 2024
- Those more settled in their home are keen to invest on health and wellness
- Graph 36: current and future behaviours towards buying home items that support consumer’s heath and wellness, by length of time in current home, 2024
- Behaviours towards the home
- Enhancing living space shapes consumers’ purchasing decisions
- Looking ahead consumers will prioritise the home
- Renters want decor catered to them
- Social media influences impulse purchasing
- Graph 37: consumer behaviour towards impulse shopping for the home, by gender, 2024
- Younger consumers enjoy entertaining at home
- Graph 38: consumer behaviour towards entertaining family/friends in the home, by age, 2024
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RETAILER ACTIVITY
- Competitive strategies
- Consumers remain cautious as they look to invest in smaller-ticket home items
- Consumers appreciate the convenience of purchasing multiple types of products in a single shopping trip
- Retailers are tapping into the smaller format…
- …as IKEA prepares for its Oxford Street debut
- Economic pressures affects some home retailers
- Retailers are banking on sleep…
- Graph 39: rooms intended to buy for, 2024
- …as IKEA sees sleep as a major investment
- Quicker and convenient delivery options important for home shoppers
- DIY is on the road to improvement for 2025
- Launch activity and innovation
- John Lewis supports the in-store experience
- Sustainability shapes home items and updates
- Space optimisation is key for urban dwellers
- LG trials Menopause Mode on its air conditioners
- Home items utilise AI to better support health and wellbeing
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APPENDIX
- Market forecast data and methodology
- Market size and forecast: underlying data
- Market forecast and prediction intervals
- Forecast methodology
- Report scope and definitions
- Market definition
- Abbreviations and terms
- Consumer research methodology
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.
This report looks at the following areas:
- The size of the market for consumer spending on the home in the UK, including market segmentation
- How much consumers have spent on their homes and the items they have invested in over the past 12 months, with a focus on how this has changed in recent years
- How much they plan to spend on their home in the next 12 months, and how improvements in housing transactions may help unlock some of this demand
- What are the drivers for spending on the home, whether that is replacing older items, boosting property values and reflecting personal style
- Consumer attitudes towards spending on the home, with a focus on value, health and wellbeing, and convenience; and sustainability
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
Market Definitions
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:
- furniture
- carpets
- decorating
- the garden
- energy (savings)
- security
- home extensions
- smart home developments
These are all topics that we cover in much greater detail in other home reports.
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