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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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A skills gap and recruitment issues in cyber security could harm businesses across the country and impact on the nation’s economy, according to a leading cyber firm.


C3IA Solutions, headquartered in Poole, Dorset, has warned that the industry needs more qualified people and that businesses often lack internal expertise. With cyber-attacks becoming more common and AI bringing new levels of sophistication, organisations must become more proactive in order to protect their systems and information, says C3IA.


According to the latest government report into cyber security skills in the UK labour market, nearly half of all businesses have a skills gap in basic technical areas. Despite the number of cyber-security graduates rising by 34 per cent, there remains a shortfall of expertise.


C3IA provides work experience for young adults and graduate placement opportunities and urges other businesses to help educate and develop the next generation of IT and cyber professionals. C3IA’s Jim Hawkins said:

“While businesses have become more aware of cyber threats over the last few years, your employees are your first line of defence and businesses need to invest in training and education that will help address many of the threats faced."

“At C3IA we understand the difficulty and recognise the findings of the government’s report which says that recruiting people with three-to-five years’ experience is the hardest area. This issue can be mitigated in part by providing internal training and development programmes."


“Graduates are becoming more numerous but they also will need experience in the industry. One of our newer staff, Hannah Baverstock, joined after graduation and is now a member of the UK Cyber Security Council Youth Advisory Panel, representing careers and qualifications."


“There are many paths into cyber security - apprenticeships, degrees, work experience, at-home training and qualifications as well as those coming into the industry from the military, and there are plenty of jobs as well as good pay."


“We encourage organisations to develop structured Continuing Professional Development (CPD) plans - ensuring teams are up-to-date with best practice and are knowledgeable on new and emerging threats."


“Ultimately the more secure businesses are, the better for the whole economy. There are malicious actors across the world who will target businesses, no matter their size or sector. Being a small business doesn’t mean you won’t be attacked."


“We suggest that all businesses obtain Cyber Essentials certification – this government-backed scheme is a simple way to protect yourself from common cyber attacks and includes free cyber insurance for added peace of mind."


“Our clients who have this certification feel much more confident in their cyber security. After all, you wouldn’t leave your office without locking the door, so why leave vulnerabilities exposed on your computer systems?”


Photo: Jim Hawkins

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