Around 1.7 million UK homes show major renovations as owners opt to improve rather than move

Around 1.7 million homes in England and Wales — roughly one in 15 properties — now carry an official Valuation Office Agency improvement indicator after significant structural works, new data seen by the Daily Mail shows, reflecting a wider trend of homeowners choosing to renovate rather than move.

The figures were obtained by Churchill Home Insurance through a Freedom of Information request to the Valuation Office Agency (VOA) in April and indicate a substantial number of households are investing in extensions, loft conversions and other large-scale refurbishment projects instead of navigating the expense and upheaval of selling and buying.

The VOA says an improvement indicator is added when major structural changes have been made to a property and that routine redecorating is not considered a major change. The marker appears on property information when a postcode is searched online. The VOA cannot alter a property's council tax band as a result of improvements until the property is sold or until a general revaluation of domestic properties takes place, which the agency says prevents owners from being immediately penalised for maintaining or improving their homes.

Homeowners and advisers point to a combination of financial, practical and emotional factors driving the shift. Moving has become more expensive in recent years as higher house prices, stamp duty and elevated mortgage rates raise the cost and complexity of buying. In addition, Churchill's survey of more than 2,000 people found that 40% of respondents cited the stress of moving — packing, dealing with property chains and hosting viewings — as a major deterrent, while more than 30% said emotional attachment to their home and local community discouraged them from selling.

"If you are embarking on a major home improvement project, it's important to let your home insurance provider know in case the works impact your insurance cover, particularly if your home will be unoccupied for extended periods," said Sarah Khan, head of Churchill Home Insurance. Khan also noted that some renovations can be costly and that homeowners should check planning rules and their insurance before work begins.

Planning permission requirements vary by project and location. Some small extensions, loft conversions and garage conversions may be allowed under permitted development rights if they meet size and other conditions, but properties in conservation areas or those that are listed may face stricter controls. Homeowners who are uncertain whether permission is required can apply for a lawful development certificate to confirm whether planning permission is necessary.

Renovation costs have been affected by rising materials prices and labour constraints. Office for National Statistics data show the average cost of construction materials has risen by more than one-third since the end of 2019. Industry and consumer advisers also warn that finding reliable tradespeople and managing timelines can be challenging, and that smaller, well-managed updates can still improve a home's functionality and value.

"Renovations give people the chance to adapt their current space to meet their needs without the stress and cost of moving," said Clive Holland, a broadcaster on Fix Radio. He added that careful planning, hiring reputable tradespeople and clear communication are key to completing work efficiently and to a high standard.

The move toward improving rather than moving has implications for mortgage holders. Financial advisers recommend borrowers whose fixed-rate deals are ending, homebuyers with purchases agreed, and buy-to-let landlords review mortgage options as soon as possible. Many lenders allow customers to secure a new deal several months ahead, often without obligation, and fees for new deals can sometimes be added to the loan. However, rolling fees into the mortgage increases the total interest paid over the life of the loan.

Buy-to-let landlords face particular pressure because interest-only products can produce sharper jumps in monthly costs when rates rise, making timely remortgaging especially important, advisers say. Mortgage brokers can help households compare products and assess whether locking in a rate early is appropriate given changing market conditions.

Analysts say the renovation trend could affect housing market mobility by keeping more owners in place and by boosting demand for building materials and trades. The VOA data and associated consumer survey suggest a mixture of practical considerations and personal preference underpin decisions to invest in existing homes rather than enter the sales market.

Homeowners planning major works are advised to inform their insurer, consult the government's planning portal, contact their local planning authority where necessary, and, if in doubt, seek a lawful development certificate. Those seeking mortgage advice are encouraged to speak to independent brokers or regulated advisers to understand options and the potential long-term cost implications of fees and borrowing arrangements.