Beat rising housing costs with smart home upgrades

Rent in the UK has surged 21% in just three years, adding an average of £221 a month to tenants’ costs. According to new data from Zoopla, the average monthly rent is now £1,283 - comparable to many mortgage repayments. With demand outstripping supply, many renters are facing difficult choices: turning down job opportunities, moving out of city centres, or relying on family support just to stay afloat. Others are living in cramped or outdated spaces because they can't afford to move house.

But for those able to stay put, whether in a secure rental or their first owned home, the challenge is no longer about relocating, but how to make their space work better for their lifestyle.

That’s where a home improvement loan can help. It’s a practical and affordable way to fund changes that enhance comfort, functionality and wellbeing, without the disruption or cost of moving house.

Making the most of the space you have

Whether you're renting, newly on the property ladder, or adjusting to family or work-from-home demands, here are four common scenarios where a home improvement loan could make a real difference…

1. A tenant allowed to make small cosmetic improvements

If you’re one of the growing number of renters with a flexible landlord, small upgrades can go a long way toward making a rented house feel like home. A personal loan for home improvements could be used to:

• Repaint tired or dated interiors in a colour palette that suits your style
• Replace basic light fittings with energy-efficient or modern designs
• Add blinds or curtains for privacy and warmth
• Install peel-and-stick tiling or update flooring for a fresh look
• Purchase freestanding shelving or storage to maximise space

These small, affordable home upgrades can have a big impact on your comfort and mental wellbeing, without breaching tenancy agreements or overspending.

2. A first-time homeowner with limited funds after your deposit

Many first-time buyers find their budgets stretched thin after covering deposits, legal fees and moving costs. That doesn’t mean you have to settle for a temporary setup or delay essential work. A home renovation loan could help you:

• Replace worn carpets with more durable, modern flooring
• Upgrade kitchen appliances to energy-efficient models
• Tackle repairs or cosmetic issues that could reduce your home’s value
• Create a comfortable space with key furniture items
• Install home security features or smart tech for peace of mind

These types of updates can transform a starter home into something truly your own - without the need for credit card borrowing or years of saving.

3. A family that’s outgrown the current layout but can’t afford to move

For many growing families, moving to a bigger property simply isn’t financially feasible. But a home improvement loan can help you stay in your home and make the space work harder for your lifestyle.
You could use it to:

• Convert a small room into a nursery, shared bedroom or homework zone
• Invest in bunk beds, fitted wardrobes or under-bed storage
• Improve shared living areas with smart storage and decluttering solutions
• Upgrade your bathroom or kitchen to suit a growing household
• Redecorate high-use areas to make them feel more spacious and refreshed

In many households, multiple generations are now making financial decisions together. According to the BBC, some parents are supporting their adult children with rent even as they plan for retirement themselves - further demonstrating the strain placed on families by the current housing market.

4. Someone working from home without a proper setup

More people are working remotely full-time than ever before. But makeshift workspaces can take a toll on productivity and comfort. If you need a professional environment at home, a loan could help cover the cost.

With a home improvement loan, you could:

• Convert a spare room or garage into a dedicated home office
• Purchase ergonomic furniture, such as an adjustable desk and supportive chair
• Soundproof a room for video calls or focused work
• Improve lighting, storage or broadband connectivity
• Add calming design touches to create a productive workspace

These changes not only boost productivity - they also support long-term wellbeing and help maintain a healthy work-life balance.

Why consider a home improvement loan?

If you’ve been pondering “is a home improvement loan worth it?”, the answer may be yes - especially when compared to the costs of moving or high-interest borrowing.

In a cost-of-living crisis, many people are understandably cautious about taking out credit. But used strategically, a home improvement loan can offer:

• A structured, manageable way to improve your home
• Predictable monthly repayments with fixed interest rates
• A faster route to comfort and functionality than saving over time
• Potential long-term savings, especially on energy use or relocation costs

Data from Zoopla shows that while house prices have only increased by 4% in the last three years, the cost of both renting and mortgage payments has risen by more than £200 per month. In this context, improving the home you’re already in could be the smartest financial decision - especially for people who want to stay in their home long term.

Compared to moving or using credit cards to fund improvements, a personal loan for home upgrades is often more cost-effective and easier to manage.

How Novuna Personal Finance can help

At Novuna, we offer home improvement loans designed to support real households, in real situations. Whether you need to redecorate, repair, or completely reimagine your space, we can help you make it happen.

Our home improvement loans include:

• Fixed monthly payments so you can budget with confidence
• Flexible borrowing amounts to suit your plans
• Competitive interest rates and no hidden charges
• A fast online application process with decisions in minutes

Whether you’re improving a rental, upgrading your first home, or creating space for family life or work, we’re here to help you invest wisely in your future.

Ready to apply?