UK DIY Retailers Thrive as Stagnant Property Market Drives Home Improvement Spending

Home improvement retailers have emerged as standout performers on the London stock market during 2025, benefiting from a significant shift in consumer behaviour as stagnant property prices and economic pressures deter homeowners from relocating or pursuing costly renovation projects.

The sector has witnessed remarkable share price growth, with publicly listed companies including Kingfisher, the parent company of B&Q, alongside Topps Tiles, Wickes and furniture retailer DFS, all recording double-digit percentage increases. Wickes has delivered the most impressive performance, with shares surging 56% to mark its strongest year since listing on the London Stock Exchange in 2021. The company, recognised primarily for its paint offerings, has capitalised effectively on the prevailing market conditions.

Kingfisher and Topps Tiles have registered gains of 26.5% and 13% respectively, representing their best annual performances since the pandemic period. DFS has achieved a 23% year-to-date increase, its most robust showing since 2019. The strength of Kingfisher’s UK operations, which complement its presence in France and Poland, has prompted the company to issue two profit upgrades since September.

The sector has received additional support from the administration of competitor Homebase in November of the previous year, redistributing market share amongst remaining players. Data from the Office for National Statistics indicates that household goods spending has frequently outpaced broader retail sales throughout the current year, underscoring the sector’s resilience.

The housing market dynamics provide crucial context for this retail success. Halifax, the nation’s largest mortgage lender, reported flat growth in house prices during November, accompanied by a sharp deceleration in annual growth to 0.7%, down from 1.9% in the corresponding month of 2024. This stagnation reflects diminished buyer demand, with financially constrained consumers redirecting their attention towards more affordable DIY projects to enhance their existing properties rather than pursuing relocation.

Policy measures introduced in the recent budget may further bolster the DIY market. Increases to the minimum wage and modifications to property taxation, combined with rising costs for activities such as dining out, could accelerate the trend of households investing more time and resources in their homes. Manjari Dhar, an analyst at RBC Capital Markets, suggests these factors may drive a continued pivot towards domestic spending and entertainment.

However, the sector faces potential headwinds. Office for National Statistics figures reveal that unemployment reached a four-year peak of 5.1% in the three months to October, which could temper the DIY boom if household incomes come under sustained pressure.

The divergence between home improvement retailers and building materials suppliers offers additional insight into consumer priorities. Whilst paint and furnishing retailers flourish, shares in building materials companies have lagged significantly. Travis Perkins has experienced an 11% decline this year, whilst Howden Joinery Group, a kitchen supplier, has managed only a modest 5% gain. This disparity suggests homeowners are postponing substantial renovation undertakings in favour of smaller, more manageable improvement projects.

Halifax recently indicated that property affordability has reached its most favourable level in a decade when comparing house prices to average incomes, returning to levels last observed in late 2015. Despite this improvement in affordability metrics, the Royal Institute of Chartered Surveyors reports that new buyer demand has declined to its lowest point since 2023, highlighting the persistent challenges facing the residential property market and the continued appeal of home improvement over home purchase.