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

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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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Jun 27, 2023

2 min read

A Scottish wholesaler with bases in Falkirk and Perth is now one of Scotland’s largest industrial suppliers, after its owner received HR support and signposting to grant funding from Business Gateway.

Established in 1974, Diamond Industrial Supplies remains an independent company, supplying quality leading brands and products throughout Scotland and the North of England. It provides specialist tools, equipment and workwear nationwide, and also offers expert advice on everything it sells, from fasteners and fixings, right through to PPE and workwear. On a mission to drive change in the sector, Director, Craig MacMorran is committed to revolutionising how they hire, train and retain their staff. Looking to grow his business, and in search of expert guidance to develop the skills necessary for turning his ambitions for growth into a reality, he approached Business Gateway for support in May 2022.

Craig’s local business adviser helped him identify various routes for growth by assessing the challenges the business faced around their organisational structure, job descriptions and staffing. After receiving HR support and undergoing a Skills for Growth project with Skills Development Scotland, Craig implemented new practices such as a new organisational culture, which helped to increase employee engagement, collaboration and the ability for the team to manage through change. Business Gateway was also instrumental in signposting Diamond Industrial Supplies for grant funding from Falkirk Council’s Resilience Fund, which went towards the rebrand and launch of their new website. This established Diamond Industrial Supplies’ digital presence, increasing brand awareness and generating a 27% increase in sales as a result.

More recently, following advice from Business Gateway, the business has expanded its staff from 9 to 17 including recruiting two graduates through the Education and Training Unit programmes from Falkirk Council. Going from strength to strength, Diamond Industrial Supplies was also shortlisted for two categories the Herald Family Business Awards in 2022.

Craig MacMorran, Director, Diamond Industrial Supplies, said: “I recently joined my dad and uncle in the company and soon realised I wanted to drive change and growth but needed guidance to make this happen. Having one-to-one support from Business Gateway has been excellent. My adviser was a safe pair of hands throughout the process and really helped me to unpack all the obstacles that come with growing a business.”

Ally Kale, Business Gateway adviser, said: “We have been able to support Diamond Industrial Supplies with a range of Business Gateway’s services. It has been fantastic to watch the business expand and develop in the way Craig wished for. I look forward to watching them continue to grow in the future.”

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

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