How rising cost of living will affect home improvements in 2023

To get an idea of ​​the biggest trends in home renovation and improvement, check out the 2023 People Ranked Home Improvement Trends Report.

After the 2020-2022 home improvement boom, when a record number of homeowners improved their homes, the release of our 2023 Home Improvement Trends report shows that rising costs are forcing many homeowners to tighten their budgets and plans for this year.

Only 35% of UK homeowners say they will definitely be doing home improvement work in 2023 (compared to 52% in 2022) and 71% of merchants think work will stop this year due to rising costs of living.

Higher costs have a huge impact on both homeowners and sellers, and here we reveal what the implications of this can be, from home improvement projects and basic home maintenance that many people have to put off, to the ways that sellers are attracting more deal this year.

You can navigate to various home improvement statistics and analytics here:

Rising cost of home improvements

Impact of rising prices on homeowners

How the cost-of-living crisis is affecting merchants

If you’re a homeowner looking to find more cost-effective ways to improve your home this year, over 50,000 experienced local merchants here at Rated People can help, from builders and plumbers to kitchen specialists and handymen. .

How much will home improvement prices rise this year?

Rising operating costs and rising material costs have risen substantially over the past two years, meaning merchants need to pass on those costs to keep up with inflation and stay in business.

We spoke to hundreds of merchants across the UK to find out how much home improvements and renovations are likely to rise. If you want work done in your home this year, it will cost an average of 17% more than in 2022.

To help you understand which jobs have seen the most price increases, we worked with Price Builder to find out how much prices have risen for some of the most common home improvement jobs. Loft conversions have seen the biggest growth, up 20% last year. Prices for garden rooms rose by 11%, as did single storey extensions and slate and tile roofs.

The 10 Best Home Improvements That Rise the Most in the Last Year

Position Home improvement Average price in 2021 Average price in 2022 Price increase 1. Attic conversion £49,695 £59,695 +20% 2. Garden room £10,423 £11,582 +11% 3. Single storey extension £47,942 £53,270 +11% 4. Slate and tiled roof £12,673 £14,081 +11% 5. Partition to create two separate spaces £780 £847 +9% 6. Installing a new floor £585 £617 +5% 7. Installing a new fitted kitchen £5,043 £5,308 +5% 8. Removing a wall between two rooms to create an open plan space £2,033 £2,140 + 5% 9. Plastering the room £720 £757 +5% 10. Kitchen tiling £440 £450 +2%

Which deals will raise prices the most

On average, 86% of all UK sellers are raising prices this year, so it’s a good idea to contact them as early as possible to secure the best price. If you are looking to hire a locksmith, electrician, plumber, roofer or carpenter, this will be even more important as they are among the top 5 occupations where price increases will see the most.

Over 90% of bathroom fitters, electricians, plumbers and roofers in the UK will be raising prices this year. The good news is that if you are looking for a plasterer and plasterer, this is an industry where price increases will not be as noticeable, with only 79% wanting to raise their prices.

Top 12 deals that will raise prices in 2023 (ranked by % of each deal that said they would raise their prices in 2023)

1. Bathroom installers94%2. Electricians92%3. Plumbers92%4. Roofers90%5. Carpenters/joiners88%6. Tilers88%7. Gardeners86%8. Gas/heat engineers85%9. Handymen83%10. Artists/decorators 82%11. Builders82%12. Plasterers/plasterers79%

How homeowners are cutting back on home improvement plans this year

For homeowners looking to complete work on their homes in 2023, it’s no surprise that rising repair costs are taking a toll on projects. Nearly half (47%) say they’re worried they won’t have enough money now to complete the types of projects they want to do this year, and more than half (51%) will cut plans and do less home renovations . work in 2023 because the cost of work has increased.

So what projects are on hold this year? The main thing is to buy a new carpet, with one in five (19%) people who said they would put off work this year saying it was work they would rather not do.

16% are putting off painting and decorating plans, and 14% say a new bathroom will have to wait.

Top 10 home improvements that homeowners are putting off in 2023 due to rising costs

1. New carpet19%2. Coloring and decorating16%3. New bathroom14%4. Garden improvement13%5. New kitchen12%6. New windows12%7. New vault9%8. New road8%9. New entrance door8%10. New wooden floors8%

Major Repairs Homeowners Can’t Afford This Year

Unfortunately, homeowners also have to cut budgets for basic home maintenance work such as gas safety checks, electrical repairs, and mold and damp removal. In fact, 6 out of 10 homeowners in the UK say they won’t be able to afford a home renovation this year.

Of the 36% of those who identified at least one important home maintenance job that they would not be able to complete in 2023, one in five (21%) will put off fixing broken appliances. 20% say they won’t be able to repair poorly insulated lots and just under one in five (19%), the equivalent of about 1 million households! – will not be able to repair or maintain their boiler, which can lead to death if the malfunction remains undiagnosed.

The 10 Most Important Home Maintenance Jobs Homeowners Are Putting Off This Year

1. Repair of broken equipment 21%2. Repair of poorly insulated areas20%3. Elimination of mold and/or dampness20%4. Maintenance and repair of boilers19%5. Roof repair19%6. Maintenance and repair of plumbing18%7. Fixing broken windows17%8. Gas safety check16%9. Maintenance, modernization or repair of electrical equipment16%10. Repair of broken/damaged doors15%

Rising cost of materials

So what is behind the rise in prices? Well, there are a number of factors that have contributed to the inflated cost of materials and operating costs for merchants, from the war in Ukraine to Brexit.

In 2022, 94% of UK merchants experienced rising costs, and in 2023, 92% of merchants said their costs continue to rise.

We reviewed official government price indexes for building materials and mixes over the past two years to see which materials experienced the biggest price fluctuations, with steel and concrete prices rising the most. In 2022, the price of concrete rebar was on average 44% higher than in 2021.

Structural steel production increased by 34%, and the cost of precast concrete products in 2022 increased by 26% compared to the previous year.

Top 10 building materials whose prices have increased on average year on year

1. Concrete reinforcing steel bars 44%2. Manufactured rods from structural steel 34%3. Prefabricated concrete products26%4. Insulation materials (thermal or acoustic)24%5. Gravel, sand, clay and kaolin23%6. Blocks, bricks, tiles and stone slabs23%7. Plastic doors and windows22%8. Bituminous mixes from a natural/artificial stone20%9. Construction work on wood19%10. Screws for metal18%

Deals for which demand will face the biggest drop in 2023

The big increase in demand in 2020, 2021 and 2022 has been incredible for merchants. But now that fewer homeowners can get the job done, 2023 will be a more challenging landscape for merchants.

Nearly three in four (71%) merchants expect they will lose their jobs this year due to rising costs of living, and 77% believe demand from homeowners will decline.

As homeowners double down on value-for-money investments, gardeners and landscapers, plumbers and laborers are among the top three jobs that expect jobs to drop in 2023.

At the other end of the scale, only about half of plumbers (54%) expect to be fired because the job will be more expensive for homeowners. Roofers and electricians also seem less affected.

Top 12 occupations that expect jobs to fall in 2023 due to rising prices

1. Gardeners/landscapers100%2. Bathroom installers88%3. Handymen78%4. Builders77%5. Gas/Heating Engineers77%6. Carpenters / joiners75%7. Tilers75%8. Plasterers/plasterers71%9. Artists and decorators69%10. Electricians62%11. Roofers57%12. Plumbers54%

How merchants are attracting more customers in 2023

To counter the challenges merchants will face in 2023, nearly one in three (29%) plans to invest in marketing and advertising to get more customers. They are also looking to expand their business to offer more services, improve their website/social channels, potentially lower prices if they can, and expand in different locations.

Top 10 Ways Merchants Are Getting More Customers in 2023

1. Investments in marketing and advertising29%2. Extension to offer more services25%3. Improve website/social channels25%4. Consider cutting prices to increase your workload24%5. Expansion to other locations24%6. Investment in tools/vehicles16%7. Form partnerships to create more jobs14%8. Raising wages to fill jobs13%9. Hire more workers10%10. Hire support for administrative/business operations8%

For more information on home improvement and renovation, download the full 2023 report here.