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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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Leading British spring and comfort technology manufacturer, Spinks, has announced the expansion of its portfolio of innovative spring solutions across North America through HS2 – its long-standing joint venture with U.S.-based Hickory Springs Manufacturing (HSM).


Building on more than 13 years of successful collaboration, Spinks and HSM will introduce a broader range of spring technology to North American mattress manufacturers, expanding beyond HS2’s established microcoil expertise to include new pocket coil technologies, open-coil systems, and advanced spring components.


At the heart of the expansion will be the introduction of several new innovations designed to add value for HS2’s customers through meaningful differentiation and greater product uniqueness in an increasingly competitive market. Many of these new coil concepts are patented or patent-pending, giving customers confidence that the innovations underpinning their products will be protected from imitation.


HS2 will also offer opportunities for customer exclusivity linked to agreed volume commitments, enabling qualifying manufacturers to secure distinctive technologies and create clearly differentiated mattress collections, while helping to improve their customers’ margins.


The expanded portfolio combines Spinks’ proven expertise in advanced spring design, engineering, and product innovation with HSM’s extensive North American manufacturing capabilities, market knowledge, and customer reach. Together, the partnership aims to establish one of the most comprehensive platforms of spring technologies, designed specifically to support the evolving needs of the North American bedding market.


The expansion comes at a pivotal time for the U.S. bedding industry, amid a changing competitive landscape. HS2 will offer mattress manufacturers greater choice, stronger product differentiation and access to innovative spring solutions supported by domestic manufacturing and supply.


Darren Marcangelo, Chief Commercial Officer of Spinks, commented:

“We are delighted to bring more of our exciting spring technologies to the North American market through HS2. Our partnership with HSM has been extremely successful, and this expansion allows us to combine our strengths in a much more powerful way."

"We have a great team in place, both operationally and commercially, enabling us to work closely with our key partners and deliver what they are looking for.”


Tim Becker, President of HSM’s Hickory Springs Wire and Bedding divisions, commented:

“Expanding our partnership with Spinks is superb news for our customers and the North American bedding industry. Together, our businesses can offer a compelling combination of manufacturing expertise, responsiveness and genuine product innovation—something mattress manufacturers are increasingly demanding."

“HS2 will give our customers more opportunities to differentiate their products, create meaningful consumer benefits and bring new mattress concepts to market.”


The expanded portfolio will build upon HS2’s established microcoil expertise while creating a comprehensive range of products for the development and commercialisation of new comfort, support and sustainability focused coil technologies specifically for the North American market.


For more information, visit here.


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