Whether you’re refreshing a tired kitchen, converting a loft, or undertaking a full-scale property overhaul, home renovation can be a fulfilling way to add value and comfort to your home. But in today’s economic climate, smart planning is more essential than ever.
The cost of building in 2025
The UK continues to experience elevated construction costs due to inflation, supply chain issues, and labour shortages. According to the Office for National Statistics (ONS), average building material costs rose by around 20% between 2021 and 2023, and while prices have started to stabilise in 2025, they remain significantly higher than pre-pandemic levels.
Skilled labour is also at a premium. The Federation of Master Builders (FMB) recently reported that nearly 60% of small builders are struggling to hire carpenters and bricklayers, which can lead to delays and added expense.
Renovation tips for today’s market
To ensure your project stays on track and within budget, consider these key steps:
- Set a realistic budget: Factor in at least 10-15% extra for unforeseen costs.
- Get professional advice: Consult architects or builders early, and always secure planning permission or building regs approval if needed.
- Think long-term: Focus on improvements that enhance energy efficiency, such as double glazing, insulation, or air-source heat pumps, as these can help to reduce your energy bills and appeal to future buyers.
If you’re considering a green renovation, the government’s Home Energy Model and Energy Saving Trust websites offer useful guidance on where to invest for maximum benefit.
Summer renovation safety
With summer being a popular season for building work, don’t forget about safety, especially if you’re taking on DIY projects outdoors:
- Stay sun safe: Wear high-factor sunscreen, stay hydrated, and take regular breaks in the shade.
- Keep your site tidy: Clear away tools and materials at the end of each day to avoid accidents.
- Look after others: Ensure any scaffolding or temporary structures are secure, especially in homes with children or pets.
Don’t forget renovation insurance
If you’re undertaking remedial works including extending or upgrading work on your home, renovation insurance is essential. This type of insurance can help protect you against risks such as existing property damage, party wall cover, building materials liability, and theft during the course of the project.
You may think that between your home and your builders’ insurance, you are covered. However, this may not be the case. You must inform your home insurance provider on your renovation proposals, including cost, duration and method. Having a chat with us before you commence on the project, will enable us to assess how your home insurance may be affected and access specialist markets which can provide ‘all risks’ insurance cover for building works and your existing structure.
This useful guide from our trusted partner Renovation Underwriting provides further guidance.
Making it count
Despite higher costs, homeowners are still investing in renovations that improve quality of life and property value. According to Rated People’s Home Improvement Trends Report 2024, 63% of homeowners planned renovations in the past year, with kitchen and bathroom upgrades topping the list.
A well-executed renovation can significantly increase a home’s appeal, with studies from Zoopla suggesting that certain projects, such as open plan living or loft conversions, can add up to 20% to a property’s value.
Remember, whether you’re tackling a large-scale transformation or a simple refresh, a little planning goes a long way. And with the summer sunshine on your side, there’s no better time to start improving your space, safely, sustainably, and smartly.
James Curnin
Account Executive
