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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 29, 2023
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How can you keep up with the ever-changing requirements of digital marketing? We spoke to Cristina Plamadeala from Toastmasters International who shares her thoughts below.


“I have found that the The Golden Circle concept outlined in Simon Sinek’s book, Start with Why is a huge help. By applying the three Gold Circle principles to digital marketing, businesses can create a more impactful message that connects with their audience.”


Principle 1

The first principle is why refers to the purpose or the reason behind a business’s existence. This could be the business’s values, mission statement, or the problem they are trying to solve. Businesses that communicate their why effectively can create an emotional connection and build brand loyalty.


Principle 2

The second principle refers to a business’s approach to achieving its goals. How can the strategies, tactics, and tools be used to reach the target audience? Businesses that communicate how effectively can demonstrate their expertise and develop trust with their target audience.


Principle 3

The third principle is what refers to the products or services that are offered. Communicating their features, benefits, and unique selling points effectively can differentiate a business from its competitors and persuade potential customers to take action.


Let me share approaches can you take to fire up your online presence.


Social Media Marketing

Whichever Social Media platform(s) you choose, the aim is to showcase your brand’s personality and connect with people on a personal level.


For example, your WHY is a new product launch, the HOW is to use LinkedIn and design engaging content. The WHAT is focusing on how your product solves a particular problem potential customers have.


Using hashtags can increase the visibility of your social media posts. To help you reach the right people research the most effective hashtags – and deploy them consistently across e.g. Instagram and Facebook.


Targeting the right audience. Instagram, for example, has robust targeting options that allow you to narrow down your audience based on demographics, interests, and behaviour. By targeting the right audience, your ads will be seen by the people most likely to be interested in your product/service.


Email Marketing

Email marketing involves sending helpful emails to your subscriber base in order to build relationships and promote your products or services. Email marketing is a cost-effective way to reach your target audience and build customer loyalty.


One of the key tactics for email marketing, is to create compelling subject lines. The subject line is the first thing the subscribers will see in their inbox, and it can determine whether or not they open your email. A good subject line should be attention-grabbing and give subscribers a reason to open your email. Generally, a ‘does what it says on the tin’ subject line is much better than something obscure and unclear.


Again, by referring back to the WHY and WHAT of the Golden Circle, you’ll be able to create subject lines will resonate with your audience (and work for your business).


Personalising your emails is another effective tactic for email marketing. By addressing the subscribers by name and tailoring the content to their interests, you can make them feel valued and increase the likelihood that they will engage with your emails.


Search Engine Optimisation (SEO)

Search Engine Optimisation (SEO) involves optimising your website or landing pages to rank higher in search engine results pages.


One of the key strategies for SEO is thorough keyword research. By identifying the keywords and phrases that your target audience is searching for, you can create content that is appropriately optimised. This increases the visibility of the landing pages in search results, drives organic traffic, and maximises conversions.


Creating high-quality content is also important for SEO. Also, by creating content that answers the audience’s questions and provides value, it can increase the credibility of your website. Your content should be inspired by the WHY and WHAT of your ‘Golden Circle’.


Pay-Per-Click (PPC) Advertising

With Pay-Per-Click advertising you pay for ads appearing on search engine results pages or social media platforms.


It’s important to target the right keywords. I’ve found that the ‘Answer the Public’ tool is a good way to identify the keywords. And by using them you can ensure that your ads are seen by people who are most likely to be interested in your products or services.


Compelling ad copy is also important for PPC success. The ad copy should be attention-grabbing, informative, and persuasive. Tailor your ad for each platform as they all have slightly different requirements. Ads, in particular, should address the WHAT, specifically WHAT you can do to help solve your customers’ problems/challenges. Always focus on what is in it for the customer.


Monitoring and optimising. By regularly analysing your ad performance and making adjustments to your targeting, ad copy, and bidding strategy, you’ll improve the ROI of your campaigns and drive more conversions.


Good luck as you fire up the next phase of your digital marketing campaign.


About the Author – Cristina Plamadeala is a member of Toastmasters International, a not-for-profit organisation that has provided communication and leadership skills since 1924 through a worldwide network of clubs. There are more than 400 clubs and 10,000 members in the UK and Ireland. Members follow a structured educational programme to gain skills and confidence in public and impromptu speaking, chairing meetings and time management. To find your nearest club, visit www.toastmasters.org

 
 

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