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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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Verge Motorcycles has built two special bikes to support the charity work of the Princess Charlene of Monaco Foundation. One of the superbikes will be the grand prize of the foundation's golf tournament in September.

Electric superbike pioneer Verge Motorcycles, which recently opened its first flagship store in Monaco, is donating two specially designed electric superbikes to the Princess Charlene of Monaco Foundation. Featuring unique red and white fairings, the two bikes are being donated to support the charity work of the internationally active foundation.


“As home to our first brick-and-mortar store, Monaco is an important Southern European base for us. We wanted to show our support for local charity work in our own special way. The Verge superbikes donated to the foundation are our way of supporting their important charity work,” says Henri Vähäkainu, Chief Commercial Officer of Verge Motorcycles.


Founded in 2012, the Princess Charlene of Monaco Foundation is committed to building a world where children from all backgrounds can thrive in a safe environment and learn to live together. The foundation has numerous ongoing charity projects around the world, raising awareness of drowning and educating children through the value of sport.


“Our foundation’s work is long-term, and we welcome new partnerships with pleasure. It is great to be able to collaborate with a pioneer in its field like Verge. The bikes donated to the foundation are unique and will go to a good cause,” says Gareth Wittstock, Secretary General of the Princess Charlene of Monaco Foundation.

One of the superbikes donated by Verge will be the grand prize of The Princess of Monaco Cup charity golf tournament that is being organised by the foundation in September.


It is hoped that the unique prize will promote fundraising for the tournament, which is aimed at the top names in the sports world. The tournament in 2019 raised 330,000 euros for charity, and this year the foundation hopes to break its all-time record.


Sharp-eyed observers may have spotted the special superbike designed by Verge for the foundation already at the legendary Monaco Grand Prix, as Finnish F1 driver Valtteri Bottas rode the bike around Monaco during race week. Bottas, who currently drives for the Alfa Romeo team, has been an ambassador for the Princess Charlene of Monaco Foundation since February. He has also admitted to being a die-hard Verge fan.


“I am personally very excited about the desire of Verge and Princess Charlene’s foundation to do good together. I am not only a charity ambassador for the foundation, but also a diehard Verge fan. It was a pleasure and an honour to be able to present this wonderful Finnish innovation in advance during the Monaco GP week,” says Bottas.


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