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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
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New research by driver training and compliance expert, TTC, reveals 49% of employees who use their private car for business-related journeys don’t recall having had their driving licence checked by their employer. With a fifth of all validation checks on grey fleet drivers and vehicles carried out by TTC on behalf of its clients failing, the findings should raise road safety alarm bells.


Despite 14 million drivers in the UK regularly using their own car for work-related trips, the TTC survey of grey fleet drivers also showed that some employers are falling short on the most fundamental vehicle validation checks. Less than a third (31%) of employees surveyed by TTC said they haven’t been asked to show a valid MOT certificate and just 35% have been asked to show evidence of motor insurance.


While it is the driver’s responsibility to ensure they have valid documents, including business car insurance, it is a legal requirement under the Health and Safety at Work Act for any grey fleet vehicle to be verified roadworthy and legal by the driver’s employer.

David Marsh, CEO, TTC Group comments, “The fact that so few employees are ever asked to provide driver and vehicle validation is truly alarming. Especially coupled with the fact that a fifth of all the 70,000 driver validation checks we carried out on behalf of clients resulted in failure. The current economic climate is placing untold pressures on UK businesses and time is money. As more deaths occur from at-work road trips than at the workplace itself, however, prioritising time to carry out necessary checks to ensure the legality of drivers and their vehicles could make a huge difference. Businesses who take control of their grey fleets can also minimise the financial and operational risks associated with collisions, convictions and driving bans.”


TTC’s research also revealed that just 22% of employees were provided with a Driving for Work policy. This essential policy is designed to educate grey fleet drivers on what confirmations they must provide before driving for work, what is expected of them when on the road, and what their responsibilities are going forward. Having a robust Driving for Work policy is a legal requirement, so as well as placing grey fleet drivers at risk, companies who do not have one also risk reputational damage, fines and even prosecution.


As well as a lack of policy and validation checks the research also revealed less than a fifth (18%) of employees said they have ever been offered driver training by their employers. Meanwhile only 11% had been asked to install a company-supplied telematics device to monitor driver behaviour. Driver training is essential to help motorists reduce their own risk, make informed driving decisions and stay safe on the road. Businesses who invest in telematics technology can aggregate all driver risk and compliance data, then use algorithms and automation to extract insight for personalised training recommendations.


David Marsh concludes, “Whilst there are many businesses proactively validating drivers, monitoring their on-road behaviours and providing personalised training to improve safety, it’s clear many businesses are putting employees and other road users at risk."


"By raising awareness of driver safety and compliance for employees at all levels, businesses can reduce their risk profile while protecting their employees and other road users.”

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