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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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Jun 14, 2023
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Calderdale community organisation, Nurturing Creativity CIC has won the Holiday Activities and Food (HAF) Regional Champion Award for Yorkshire and Humber for its holiday club at this year’s HAF Programme Awards.


The accolade was presented for its work in giving children from low-income families access to free, nutritious food and engaging activities over the school holidays.


Hundreds of thousands of children across England attend HAF holiday clubs nationwide, which support parents with childcare costs over the Christmas, Easter and summer holidays, offering children enriching activities such as football, play sessions and cooking classes.


Nurturing Creativity CIC demonstrated an exceptional commitment to providing engaging activities for children during the holidays. It is one of 8000 clubs, events or organised activities in England to have offered an experience to around 600,000 children in summer 2022.


Kirilea Whitehead from Nurturing Creativity CIC explained: “The HAF Programme has enabled us to provide safe, fun and engaging holiday clubs of the highest quality in Ovenden and Illingworth. The children from these areas experience a vast range of activities with us and we encourage them to step outside their comfort zone and ‘Give it a Go’, building confidence, character and self-esteem."


“Our clubs are valued by the children, the families, the schools and all the staff involved. Winning this award highlights a real team effort and makes us extremely proud of all who create the vibrant and innovative environment that inspires and engages all our children.”


Cllr Sarah Courtney, Calderdale Council’s Cabinet Member for Towns, Tourism and Voluntary Sector, said:


“Congratulations to Nurturing Creativity CIC for winning this prestigious award! It’s an amazing achievement and well-deserved recognition for everything they do for Calderdale’s young people."

“The Council is proud to work in partnership with the Community Foundation for Calderdale and community organisations like Nurturing Creativity to provide a vital lifeline for families struggling financially, especially during the cost of living crisis. Together, with the support of the Holiday Activities and Food Programme, we’re helping to reduce inequalities by tackling child hunger and family poverty, and giving young people hope and access to opportunities to achieve their potential.”


Steve Duncan, CEO of Community Foundation for Calderdale, added: “Reducing inequalities and investing in children is important. We are so proud that the regional winner for Yorkshire and the Humber is from Calderdale and feel that this reflects the high quality of Healthy Holidays projects that are running in our borough.”


Minister Claire Coutinho, Minister for Children, Families and Wellbeing, said: “Our Holiday Activity and Food Programme gives children across the country access to incredible experiences during the holidays, helping to make friends and create memories through enriching and fun activities. Nurturing Creativity CIC has gone above and beyond in offering an experience like no other which is why they’re this year’s winner of the HAF Regional Champion for Yorkshire and the Humber.”


The government’s HAF Programme started as a pilot in 2018. It was created in response to the pressures that low-income families can face over the holidays, with some children being less likely to access organised out-of-school activities, and more likely to experience social isolation and ‘unhealthy holidays’ in terms of nutrition and physical health.


It provides free places for school-aged children from reception to year 11 who receive benefits-related free school meals. Government provides funding through local authorities to fund clubs over summer, Easter and Christmas breaks.


The continuation of the HAF Programme is part of the government’s commitment to support vulnerable families with rising costs due to global inflationary pressures, particularly in disadvantaged areas. This programme runs alongside the Household Support Fund which supports vulnerable households through small payments for food, clothing and utilities. The fund has recently been extended to 30 March 2024 with an additional £1 billion to be used by local authorities to support vulnerable households.


 
 

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