Why Britain's home extension dream is dead
But new data suggests Britain's appetite for home extensions has died amid soaring building costs and stretched household budgets.
Planning approvals for home improvements and extensions have sunk to their lowest level in 10 years, according to analysis by estate agency Savills.
There were 151,177 planning consents for housebuilder developments in England in the year to March, 8pc fewer than the year before and 27pc lower than the average for the preceding decade.
Experts attributed the drop in planning permissions to rising material costs, cost of living pressures and high interest rates, which make borrowing for home improvements more expensive and cause mortgage payments to eat into disposable income.
Paula Higgins, chief executive of Homeowners Alliance, said: 'It's not surprising that renovation plans are being put on hold – people are financially stretched just to get on the housing ladder, let alone invest in improvements.
'Many buyers underestimate the true costs of homeownership, with almost one in three younger homeowners regretting not budgeting for the full cost of buying and renovating their home.
'Add to that the ongoing cost of living pressures, and it's clear that homeowners have less money in their pockets to spend on upgrades. More people may now need to wait longer after buying to save up before they can afford renovation work.'
Regional differences
The fall in planning permissions contrasts with a surge in housing transactions, which were 24pc higher in the first quarter of 2025 compared to the same period in 2024.
Lucian Cook, head of residential research at Savills, said: 'Typically, there is a strong correlation between property transactions and home improvements, as homeowners often undertake renovations shortly after moving in. However, this relationship became notably disjointed in 2023, with the gap between transactions and improvements reaching its widest point over the past 12 months.'
Some areas have seen shorter drops in planning permission numbers than others; in London they fell just 3pc in the year to March, compared to 9.3pc in the South East and 10.7pc in the North East.
'The higher the house prices in an area, the more extending makes financial sense, meaning that more value can also be unlocked in London and the South compared with the Midlands and the North as build costs are less likely to outstrip the value added,' said Cook.
The supply of properties on the market reached a 10-year high earlier this year, meaning buyers enjoy much greater choice, which means they are less likely to settle for a property that needs improvements, Cook added.
'With more properties available on the market and slightly weaker demand, our agents are reporting that buyers, who have greater choice, are increasingly favouring turn-key or ready-to-move homes.'
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