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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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In the UK, all four nations (England, Scotland, Wales, and Northern Ireland) have their devolved parliaments, each with authority over its specific waste policy and regulations. These are often referred to as 'Devolved Waste Regulations'.

This operates alongside UK-wide legislation (such as the Environmental Protection Act 1990 and the Environment Act 2021) to ensure a certain level of standardisation across the UK. However, it also allows each nation to tailor its own waste regulations to suit its specific needs and circumstances.

In recent years, the government has reported recycling rates in England have increased to 42-44%, a 33% rise since 2000-2001. To further boost these figures and streamline the process, the government aims to simplify recycling for households and businesses. Instead of checking with local councils about recyclable materials, the goal is to establish a standardised approach where everyone recycles the same items. This move is expected to maximise the efficiency of recycling streams, increase overall recycling rates, and reduce waste.

Scott Hawthorne, founder of 240 litre bins company, Skips and Bins, has delved into upcoming waste management regulations and laws that will impact businesses from 2025 onward. His research highlights the need for English businesses to reassess their waste disposal practices and prioritise recycling to comply with these new standards.

Wales Inspires England's Waste Policy

Starting March 31, 2025, businesses in England will be required to separate their waste into two distinct streams: dry recyclables and commercial food waste.

A new commercial waste regulation, which came into effect in Wales on April 6, 2024, will be implemented in England starting March 31, 2025. This regulation aligns with Wales' ambitious goal of achieving zero waste by 2050, aiming to recycle, compost, and reuse 100% of waste.

Since Wales implemented its new regulations, its recycling rate has stabilised at around 65%. This success has inspired England to set similar goals and adopt stricter regulations to boost its own recycling rates.

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According to the new regulations, businesses across England must combine and organise the collection of their dry recyclable waste. This waste stream typically includes glass bottles, metals (steel, aluminium, tin cans, trays, tubes, aerosols, and lids), plastics (bottles, pots, tubs), paper, and cards.

Understanding Commercial Food Waste

The new legislation mandates that all businesses across England must implement separate collections for food waste and adhere to specific waste presentation guidelines. While weekly collections aren't strictly required, businesses must ensure proper disposal of food waste.

The government intends to process commercial food waste through anaerobic digestion (AD). This method is considered the most environmentally friendly way to handle unavoidable food waste, as it generates biofuel and digestate. The resulting digestate can be applied to land, recycling nutrients and promoting a more circular economy.

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Smaller businesses with 10 or fewer employees will experience more flexibility in separating dry recyclables and food waste. They will also have until March 31, 2027, to arrange for the collection of these waste streams.

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Each year, UK consumers purchase an estimated 31 billion single-use drinks containers, including 12 billion plastic bottles, 14 billion drinks cans, and 5 billion glass bottles. Despite this, current collection rates range from 70% to 75%, with a substantial portion of these containers ending up as litter or in landfills.

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