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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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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.

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Jul 10, 2025
3 min read

New research from Uswitch business savings experts reveals that small business owners are either optimistic (34%) or supportive (37%) about AI, yet employee responses suggest a more mixed picture. Employers and employees are divided when it comes to artificial intelligence.


While there is interest and curiosity, 20% of SME employees say they feel frightened about their career’s future due to AI developments. 17% feel directly threatened by AI’s potential, and 33% are concerned about its long-term impact on their working lives.


This suggests that while employers see enthusiasm, many staff still feel unprepared, highlighting a need for better support, communication and training.


Employers aren’t without concerns, either. While many see AI as a valuable tool, over half (51%) of those already using it say they view it as a way to support their workforce, not replace it. At the same time, nearly a third acknowledge potential risks, from data security and job disruption to changing market expectations.


What workers really think about AI

As AI rapidly reshapes job roles and workflows, employees are caught between optimism and anxiety. While 42% recognise both the risks and opportunities of AI, nearly one in five (18%) believe the next five years will bring more harm than good.


It’s a complicated picture. Businesses may be racing ahead with AI adoption to boost efficiency, but many workers are still unsure where they fit in. According to the research:


  • 30% of employees want more reassurance about job security

  • 42% say they need more training to use AI tools confidently

  • 30% are calling for clearer communication from leadership


Taken together, these responses paint a clear message: without support, transparency and upskilling, AI risks becoming a source of workplace stress, not empowerment.


What about employers?

Employers, meanwhile, appear more confident about the role of AI in their businesses. In fact, 41% of SME owners say they are eager to learn more about the technology, and 35% describe themselves as excited about its potential, a sign that business leaders are beginning to view digital tools as essential for long-term competitiveness in a challenging economic climate.


This optimism, however, is not without its blind spots.


While many SME owners are forging ahead with AI trials or adoption, 17% believe their employees don’t fully understand how AI works, raising concerns that staff may not be adequately supported through this transition, or that AI tools will not be used effectively.


As UK businesses grapple with rising costs, skills shortages, and fast-moving technological change, aligning leadership enthusiasm with practical workforce training will be key to making AI work in real-world settings.


Bridging the gap: What employers can do next

According to Andy Elder, Uswitch business savings expert, closing the perception gap is critical for building trust and fostering innovation. He shares practical tips for business owners to better align with their employees’ AI concerns:


1. Prioritise transparency and communication

Make sure staff understand why and how AI is being used in your business. Provide regular updates, involve them in decision-making, and create space for feedback and questions.


2. Offer practical training and support

Help employees build confidence by offering accessible training sessions, demos, and real-life use cases. Show how AI tools are designed to assist, not replace, their roles.


3. Address job security concerns head-on

Be open about what AI means for different job roles. Explain which tasks might evolve and provide a clear long-term vision that includes your people.


4. Lead by example

When leaders actively and responsibly use AI tools, it signals that the technology is there to support, not displace, the workforce. Visibility matters.


5. Focus on tools that enhance human creativity

Whether it’s generating ideas or speeding up research, choose AI tools that complement rather than compromise human input, especially for creative teams.


Andy Elder, Uswitch business savings accounts expert, said: “Employers and employees don’t always see eye to eye on AI, and that’s understandable. But to unlock the real value of these tools, businesses need open dialogue and mutual understanding."


“Keeping staff informed and involved is essential. AI adoption shouldn’t be about imposing change from the top. Leaders still need to make decisions, but involving employees early on, and giving them the right training, builds trust and leads to better outcomes for everyone."


“In most cases, AI is here to streamline and enhance workflows, freeing people from repetitive tasks so they can focus on more creative, meaningful work. Being clear about that is key to building confidence and driving successful adoption.”

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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.

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