A recent report by Aviva, titled the 2025 How We Live report, reveals that nearly seven million UK homeowners are gearing up to renovate their homes over the next two years, with an average budget of £14,000 per household.
The report, based on a survey conducted by Censuswide between November 8 and 15, 2024, highlights a growing trend toward creating adaptable, energy-efficient living spaces to accommodate modern lifestyles and multigenerational households.
The data shows that younger homeowners, particularly Generation Z (aged 27 and under) and Millennials (aged 28-43), are driving the renovation surge, with 73% and 65% respectively planning home improvements. A significant focus is on energy efficiency, with 56% of surveyed homeowners having made such upgrades in the past two years, and 55% of those who haven’t planning to do so. This aligns with broader environmental goals, as the UK aims for net-zero carbon emissions by 2050, with homes playing a critical role due to their 30% share of total energy usage.
Multigenerational living is another key driver, with more than one in 10 UK adults (11%) living with parents, step-parents, or in-laws. This trend is particularly pronounced among younger adults, with 38% of 16-24-year-olds and 16% of 25-44-year-olds sharing homes with family. Among homeowners planning renovations, 17% aim to create more rooms to accommodate multigenerational living, reflecting a need for flexible, spacious homes. In London, 28% of renovators plan to add space for family members, 11% above the national average
Homeowners are also adapting to modern working practices, with 25% of those planning renovations citing remote work as a motivator. Of these, 15% plan to create home offices, and 13% aim to establish spaces for business ventures or side hustles, such as workshops or studios. Regionally, priorities vary: West Midlands homeowners lead in creating home offices (26%), while Scottish renovators focus on aesthetics, with 61% aiming to enhance their property’s enhancement
Hazel Johnson, Director of Home and Motor Claims at Aviva, emphasizes the importance of informing insurers about renovations. “The findings highlight a significant trend towards creating more adaptable and energy-efficient living spaces,” she says. “However, such changes can impact home insurance. Whether creating space for family or setting up workspaces, homeowners must notify their provider to ensure adequate protection.” Structural changes, like adding bathrooms (17% of renovators) or extending layouts (21uld affect policy terms, making it essential to review coverage.
The report also underscores the broader implications of these trends. With the 2025 Future Homes Standard set to mandate 75-80% lower carbon emissions for new homes, renovations prioritizing energy efficiency align with national decarbonization goals. However, homeowners must balance these upgrades with potential impacts on insurance and costs, ensuring their homes remain safe and financially secure.
As the UK housing market evolves, the push for sustainable, adaptable homes reflects changing demographics and economic pressures. With millions investing in their properties, the focus on energy efficiency and multigenerational living signals a forward-thinking approach to modern living.
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