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V12 Retail Finance Q3 Data Shows Home Improvement Finance More Than Doubling



New quarterly data from V12 Retail Finance shows that UK consumers continued to turn to point-of-sale finance for high-value purchases in the third quarter of 2026. Total finance values across the platform grew 7% between July and September compared with Q3 2025, and were almost 20% higher than in the same period of 2024.


The quarter got off to a challenging start as prolonged hot weather and a busy international sporting calendar disrupted normal shopping patterns in July. However, each month of the quarter was ahead of the same month in 2025, and demand strengthened as the summer went on. As in the first half of the year, growth came mainly from categories linked to the home, health and practical everyday purchases. This suggests that households remain willing to commit to significant spending, but continue to be selective about where they do so.


Andrew Phillips, Managing Director of V12 Retail Finance said:

"The third quarter shows a consumer who is still willing to spend on what matters most, even when the backdrop is far from straightforward. July was a difficult month for many retailers, but demand held up and strengthened through August and September."

"The standout trend is the continued investment households are making in their homes. Home improvement finance more than doubled year on year in the quarter, and that reflects a broader shift we have been tracking for some time, as people choose to improve the homes they already have rather than move."


"Consumers remain cautious about the wider economic picture, and we expect them to stay selective. But the strength and breadth of demand across our portfolio gives us confidence as retailers head into Black Friday and the Christmas trading period."


Home improvements emerge as the defining trend of 2026

Home Improvements was a standout performer in V12’s portfolio in Q3. Finance values rose by around 112% year on year, and the pace of growth increased each month. Values were up approximately 56% in July, 107% in August and 163% in September.


The category has now grown almost fourfold in quarterly value since Q3 2024, and now accounts for around 7% of total finance values, compared with less than 4% in the same period last year. Across the first nine months of 2026, home improvement finance values are up by around 73% year on year. This builds on the multi-year pattern of increased investment in property-related projects that V12's earlier data releases highlighted.


Furniture remains the anchor of demand

Furniture remained the largest category by a significant margin, accounting for close to 49% of all finance values in Q3 2026. Finance values held broadly stable, rising around 1.5% year on year on what had been a strong Q3 2025.


Performance varied through the quarter, with July softer as warm weather reduced footfall, particularly at retail park locations. August was a stronger month for the category, with finance values rising nearly 9% year on year as cooler temperatures and Bank Holiday promotional activity brought customers back to stores. On August Bank Holiday Monday alone, applications approved across V12's portfolio rose by almost 40% compared with the same day in 2025, with furniture retailers making a significant contribution.


Healthcare and practical categories continue to grow

Healthcare and dental finance values rose by around 6% year on year, and are up by more than a third compared with Q3 2024. The category accounted for around 12% of V12's total finance values in the quarter. This reflects continued consumer willingness to invest in dental and elective treatment, supported by the expansion of V12's healthcare provider network.


Growth was also strong across several practical and lifestyle categories. Consumer electrical finance values more than doubled year on year, rising by around 126%. Cycles grew by around 24%, with double-digit growth in every month of the quarter. Motor finance rose by close to 6%.


Signs of stabilisation in discretionary categories

In Q1, discretionary luxury categories were under pressure. In Q3, there were early signs that this pressure is beginning to ease. Jewellery, the second largest sector by value, returned to growth, with finance values rising nearly 3% year on year. This marks a positive step after a softening trend that had been evident since mid-2024.


Other discretionary categories remained more subdued. Art saw a decline of close to 8%, while music was broadly flat. This suggests that while sentiment around non-essential purchases may be improving, households are still exercising restraint in some areas.


Retailer network continues to expand

V12's retailer network continued to grow during the quarter. The most significant milestone was the launch of V12's partnership with Magnet, which went live across all 150 Magnet stores in July and made a strong early contribution to the growth in home improvement finance. The sector also benefited from continued growth among retailers introduced through broker partners.


"What has been particularly encouraging this quarter is how broad the growth has been," added Andrew Phillips.

"We have seen strength in our largest categories, in healthcare and in practical purchases, and early signs of recovery in jewellery. Combined with the momentum in home improvements and new partnerships such as Magnet, that gives us a solid platform as we move into the busiest trading period of the year."

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Feb 7, 2025
3 min read

In the world of gardening and horticulture, there exists a unique and fascinating movement that has captured the hearts of enthusiasts and artists alike. The Bonsai movement, with its origins deeply rooted in ancient Chinese and Japanese traditions, has evolved into a global phenomenon that transcends mere gardening.


It is a fine art form that involves sculpting and nurturing miniature trees, offering a glimpse into the delicate balance between human intervention and the natural world. So let's take a look at the history, philosophy, and enduring appeal of the Bonsai movement.


A Brief History

Bonsai, which means "tray planting" in Japanese, can trace its origins back over a thousand years. The practice began in China during the Han Dynasty (206 BC – 220 AD) and later spread to Japan, where it was further refined and embraced as an integral part of Japanese culture. Initially, Bonsai was reserved for the elite and was often associated with imperial gardens and temples.


However, over time, Bonsai became more accessible to the common people, evolving from an exclusive art form to a shared passion among enthusiasts. Today, it has become a global movement, transcending cultural boundaries.


Philosophy and Aesthetics

At its core, Bonsai is a living art form that embodies several philosophical principles. One of these principles is "Wabi-sabi," which celebrates imperfection, asymmetry, and the passage of time. Bonsai artists aim to create trees that evoke a sense of natural beauty, even in their small, meticulously shaped forms. The process involves careful pruning, wiring, and styling to achieve the desired appearance while maintaining the tree's health.


The Bonsai artist must also consider the tree's age, its history, and the environment it would naturally inhabit. This holistic approach to the art form demonstrates a deep respect for nature and a harmonious coexistence between the artist and the tree.


The Appeal of Bonsai

The enduring appeal of Bonsai lies in its ability to encapsulate the grandeur of nature in a diminutive space. It allows individuals to connect with nature on a profoundly intimate level, fostering patience, mindfulness, and a sense of stewardship. For many, the process of caring for a Bonsai tree is meditative, providing an escape from the hustle and bustle of modern life.


Furthermore, Bonsai transcends cultural and generational boundaries. It brings together people from diverse backgrounds, fostering a sense of community and shared passion. Bonsai clubs and exhibitions around the world provide a platform for enthusiasts to showcase their creations, learn from one another, and preserve the traditions of this art form.


Preservation and Innovation

While the Bonsai movement is deeply rooted in tradition, it is not stagnant. Bonsai artists continue to innovate, experimenting with new styles, species, and techniques. The art form has evolved from the classical Japanese styles to include new approaches, such as naturalistic and abstract designs. These innovations keep Bonsai relevant and exciting for new generations of enthusiasts.


The Bonsai movement is not merely about cultivating miniature trees; it is a philosophy, an art form, and a way of life. Its rich history and enduring appeal highlight the profound connection between humans and nature. As Bonsai continues to spread across the globe, it reminds us of the beauty that can be found in the smallest of things and the wisdom of preserving ancient traditions while embracing innovation.


In a world driven by speed and scale, Bonsai teaches us to slow down, appreciate the beauty of imperfection, and find harmony with the natural world.

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