The true cost of living – how home improvement franchises fill the gap

Homeowners are increasingly confronted with the daunting reality of the cost of renovations. A significant 44% of homeowners are worried they won’t have enough money to complete home renovations because of the cost-of-living crisis¹.

For consumers, a clear solution is to invest in home improvements that won’t break the bank. A year-on-year comparison reveals a sharp increase in the financial outlay for home renovations, with average spending escalating from just over £25,000 in 2022 to nearly £30,000 in 2023¹. It is because of this that home improvement franchises that provide a more cost-effective solution are more in demand than ever. Here, Will Frankling, the founder of home improvement franchise, Kitchen Makeovers, gives his top three reasons as to why. 

Market movement

It seems like the cost-of-living crisis we’ve been grappling with isn’t showing any signs of easing up soon. With both interest rates and inflation remaining at elevated levels, it’s no wonder that we’ve seen such a steep increase in the cost of essentials like food — rising around 25% from January 2022 to January 2024². This significant uptick has understandably squeezed consumers’ budgets, leaving many with less disposable income and on the lookout for more cost-effective solutions.

In light of these challenges, home improvement businesses are adapting to survive – offering cost-effective services, coupled with the convenience and reliability of a trusted name. With consumers still opting to make these home improvements, these elements increase appeal amongst competitors.  

Adding value to your home

Following the recent slump in the housing market, finding ways to stand out from the crowd has become more important. In fact, 1 in 4 renovators (24%) say adding value is their top motivation for doing a renovation. 1 in 6 (16%) say they renovated in 2023 because it’s cheaper to renovate their existing home instead of moving to somewhere new, and 1 in 8 (12%) say they couldn’t have afforded the same type of property if it was freshly renovated (by someone else)¹. 

Partial renovations as opposed to a full remodel have been growing in popularity as they present an opportunity to improve the look and value of a property, without the extensive costs and time commitment associated with a complete overhaul. This approach allows homeowners to focus on updating key areas or features that can have a significant impact, such as the kitchen or bathrooms, while maintaining the overall structure and character of the home. Four in 10 homeowners who planned improvements in 2023 said they’d be opting for some kind of ‘part update’, and 70% of tradespeople think demand for ‘part updates’ will increase as they’re also a great way to save money¹.

At Kitchen Makeovers’ we provide a service that allows customers to transform their kitchens without incurring the cost of a complete renovation. By retaining the existing kitchen units, we focus on replacing key elements to give a fresh new look. This option allows homeowners a more affordable, sustainable option when looking to add value to their homes.

Rising costs force creative solutions

The home improvement sector has had to adapt to rising costs and the cost-of-living crisis. In 2022, 94% of UK tradespeople experienced rising costs and in 2023, 92% of tradespeople said their costs were increasing further¹. In response, many businesses are breaking away from traditional practices to gain an edge. For example, replacing physical showrooms with online virtual ones, embracing the benefits AI can bring or upcycling products that might have been thrown away in the past. 

Will concludes, “This strategic shift is not merely a temporary adjustment but is shaping up to be the blueprint for the future of home improvement. As the market changes, being adaptable is the key to long-term success. A home improvement franchise provides an exciting opportunity to be a part of this new wave. Times are changing and so is the nature of home improvement. Consumers are looking for innovative solutions that not only enhance the aesthetic appeal of their living spaces but also increase their value, functionality and efficiency.” 

_{¹Rated People, RATED PEOPLE HOME IMPROVEMENT TRENDS REPORT, 2023}

_{²Office for National Services, Cost of living insights: Food, 2024.}