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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 31, 2025
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EMR, a global leader in sustainable materials, is continuing its mission to develop advanced circular supply chains for rare-earth magnets by joining CirculaREEconomy (CREEM) - a pioneering £11 million research and development consortium.


Led by rare-earth recycling innovator Ionic Technologies, the initiative brings together forward-thinking automotive manufacturers, as well as rare-earth metals and magnet manufacturers, to establish a scalable and sustainable method of recovering and reusing rare-earth magnets from end-of-life vehicles (ELV).


CREEM forms a key part of the UK’s Department of Business and Trade’s £2.5 billion DRIVE35 campaign. Announced in July, DRIVE35 is supporting projects that will help the transition to zero-emission vehicle manufacturing.


Rare-earth magnets, such as powerful Neodymium (NdFeB) magnets, are essential components in electric vehicles (EV) and can be found in powertrains, seat motors, speakers and many other systems. However, they are difficult to recover and recycle and potentially vulnerable to global supply chains.


Facilitated by the Advanced Propulsion Centre UK (APC), CREEM aims to transform this challenge into an opportunity. EMR is investing £730,000 (including match funding) to develop the collection, recovery and recycling technology that will enable rare-earth magnets to be recovered more efficiently, sustainably and safely from EV motors and other assemblies.


Building on experience gained during the recently completed SCREAM and Re-Rewind projects, EMR will work alongside Ionic Technologies and other consortium partners - including Ford Technologies, Bentley Motors, Bamford Bus Company (Wrightbus), Less Common Metals (LCM) and the British Geological Survey (BGS).


Recycling rare-earth magnets can be a slow, expensive and labour-intensive process. From a brand-new pilot line at EMR Birmingham, teams will explore ways to make the process of liberating the rare-earth magnets contained within EV motors more efficient. This will allow them to be safely and effectively recovered as part of a ‘long-loop circular supply chain’ – where materials re-enter the manufacturing cycle with a high level of purity and function.


Carefully separating magnets in this way allows Ionic Technologies to break them down to their constituent rare-earth oxides using a range of solvents and other chemical processes. This approach offers the industry flexibility in the chemistry of the recycled magnets it can produce, enabling rare-earth magnets from older EVs to become brand-new magnets that meet the exact specification required for future vehicles, reflecting the fast pace of innovation.


In addition, this project will allow EMR to safeguard the high-grade steel often used to build these motors – which can be downcycled during some recycling processes.


By limiting the demand for virgin materials, a sophisticated circular supply chain for rare-earth magnets will reduce the biodiversity loss associated with extracting primary materials, as well as boost the UK’s resource security. Early analysis by Ionic Technologies suggests refining this secondary (recycled) material can reduce the carbon impact by around 60% compared to virgin alternatives.


As part of CREEM, the British Geological Survey will be tasked with quantifying these benefits even more accurately, producing a material flow and Life Cycle Assessment (LCA) of the recycled components.


Roger Morton, Managing Director for Technology and Innovation at EMR, said: “We’re really excited to reveal the next stage of EMR’s mission to create a circular economy for rare-earth magnets – crucial to the green transition."


“CirculaREEconomy continues EMR’s investment in the recycling of the Neodymium (NdFeB) magnets, which can be found in everything from electric vehicles and hi-fi equipment to the largest offshore wind turbines, as reflected by the recently completed SCREAM and Re-Rewind projects."


“A circular economy for these materials won’t only safeguard the planet’s biodiversity and add resilience to vital supply chains, it will also allow our customers to achieve circularity, move closer to their net-zero targets and align with the ELV Regulations and the EU’s Critical Raw Materials Act - which mandates a quarter of demand for this material must be met by recycling by 2030."


“In addition, EMR’s long-term commitment to recycling these powerful magnets has enabled our teams to develop the highest safety standards when handling what can be very difficult materials."


“We’ll now take everything we’ve learned so far and join forces with the rest of the consortium to build an efficient, scalable and flexible long-loop supply chain which complements our previous development projects for these increasingly crucial magnets.”

Ian Constance, CEO at the Advanced Propulsion Centre, said: “This new investment underlines the commitment from government to secure advanced manufacturing in the UK. I am pleased that the APC, Zenzic and its delivery partners are here to facilitate a new wave of funding in the automotive industry, supporting innovation, driving scale-up, and enabling transformation."


“This will encourage further investment in the UK’s growing zero-emission supply chain, safeguarding skilled jobs and building on the country’s reputation as a world-leader for technology.”

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