Millions of homeowners in England and Wales choose renovation over moving as costs and stress rise

About 1.7 million homes in England and Wales — roughly one in 15 — now carry official markers showing they have undergone major improvements, according to data obtained via a Freedom of Information request, underscoring a growing tendency among homeowners to renovate rather than move.

The figures were provided to Churchill Home Insurance after it asked the Valuation Office Agency (VOA) for records in April. The VOA says an "improvement indicator" denotes major structural changes to a property, such as adding an extension or converting a loft, and that redecorating does not meet the threshold. The agency also told researchers it does not change a property's council tax band following improvements until the home is sold or there is a general revaluation of domestic properties, a policy designed to avoid penalising owners who invest in their houses.

Researchers and industry commentators point to a mix of financial, practical and emotional reasons for the shift. Higher house prices, stamp duty and elevated mortgage rates have made moving more expensive and, for many, less attractive. A separate survey conducted by Churchill, of more than 2,000 people, found that 40% of respondents cited the stress of moving — including packing, managing property chains and hosting viewings — as a major deterrent, while more than 30% said attachment to their home and community discouraged them from seeking a new property.

"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. Broadcaster Clive Holland, speaking about renovation trends, said the work can allow homeowners to adapt spaces to new needs without the upheaval of selling and buying, but he cautioned that careful planning and reputable tradespeople are essential to keep projects on time and on budget.

The cost of renovating is not trivial. Office for National Statistics data indicate the average cost of construction materials rose by more than one-third between the end of 2019 and recent years, increasing the financial burden of projects and squeezing margins for homeowners and builders alike. Industry sources also note that demand for reliable tradespeople can outstrip supply, producing delays and contributing to higher labour costs.

Homeowners considering major works are advised to notify their insurance provider, check the Government planning portal and consult their local planning authority before starting. Some changes — including modest extensions, loft conversions and certain garage conversions — can fall under permitted development and avoid the need for full planning permission if they meet size and condition criteria. Properties that are listed or located in conservation areas face separate rules. Where there is uncertainty, a lawful development certificate can provide official confirmation that proposed work does not require planning permission.

The trend has wider implications for housing market activity. Renovation as an alternative to moving can reduce transaction volumes and affect supply on the market, while sustaining demand for building materials, skilled trades and associated services. For homeowners who still need to secure new mortgage deals — whether because a fixed rate is ending, they are buying, or a remortgage is required — advisers recommend comparing rates early, speaking to mortgage brokers and being mindful of timing and fees, as higher borrowing costs continue to influence housing decisions.

The VOA data offers a snapshot of a sizeable portion of the domestic stock that has been altered to meet occupant needs, reflecting both the economic pressures and personal preferences that are shaping choices about whether to move or improve existing homes.