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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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May 12, 2025
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Uriah Rennie, the first black referee to oversee Premier League games and active community advocate, has been officially installed as the new Chancellor of Sheffield Hallam University.

Proud Sheffielder Uriah, best known as Uri, was formally installed as Chancellor at a ceremony held at the University and attended by university staff and students, alumni and civic representatives from across the region many of whom Uri will be working with in the future.

Uri, who was raised in a working-class neighbourhood in the east end of Sheffield, became an international FIFA and FA football referee who officiated more than 300 games during his career.

During his career he began campaigning on a range of issues including improving equity, equality and inclusion in sport, supporting mental health and tackling deprivation within communities, something he actively continues to do. Uri intends to use his time as Chancellor to further those causes.

Uri has a long affiliation with Sheffield Hallam, having successfully studied for an MBA at the University during his refereeing career. And in 2023 he was awarded an Honorary Doctorate in recognition of his distinguished contributions to sport and his work with resilient communities across South Yorkshire.

Uri Rennie said:

“I’m immensely proud to become Chancellor at Sheffield Hallam University, and I’m looking forward to working with students, the wider university community and the Vice-Chancellor to make a real difference."

“I intend to immerse myself in university life as Chancellor, making myself approachable, visible and accessible during my time in this key role as an ambassador for Sheffield Hallam and the wider region."

“I would like to work to inspire and encourage young people from the types of communities I was raised in to take advantage of the new opportunities and resources the university offers.”

Professor Liz Mossop, Vice-Chancellor at Sheffield Hallam University, said:

“Uri is a true Sheffield trailblazer, who broke down barriers to inclusion in sport. He is a man of great integrity with a reputation for boldness and fairness and a fierce commitment to equity and inclusion for all. Throughout his life he has advocated for resilient communities and being a passionate ambassador for Sheffield."

“His reputation and impact are widely recognised, and his contribution to the University, our city and region will be a huge inspiration for all our students."

“His values and focus on social justice align completely with those of Sheffield Hallam and we are proud and privileged to welcome him formally as our new Chancellor.”

The Chancellor performs a ceremonial role and acts as a key ambassador for the University.

Uri takes on the Chancellorship from Baroness Helena Kennedy LT KC after six years of service. Baroness Kennedy is patron of Sheffield Hallam’s world-leading Helena Kennedy Centre for International Justice, and she will continue to work closely with colleagues in the Centre to champion the work of staff and students.

 

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