Dreams of knocking through a wall, fitting a brand‑new kitchen or finally extending your home are looking far more achievable in 2026.
According to the latest Checkatrade Home Improvement Index, the average cost of a renovation has slumped by around 25% from its peak in 2023, driven by steadier material costs, less extreme wage inflation and keener competition among tradespeople.
For homeowners who’ve put projects on hold, and the builders keen to win more jobs, this shift couldn’t come at a better time.
Renovation jobs now cost less
Checkatrade’s analysis of millions of quotations from builders and trades professionals shows the median cost of a building job – whether internal wall removals, conversions or extensions – has fallen to around £6,000 this year, down from about £8,000 at the 2023 peak.
That represents typical savings of roughly £2,000 per project compared with two years ago.
Jambu Palaniappan, CEO of Checkatrade, said the shift reflects the disappearance of what the industry calls “supply risk premiums” – extra buffers that tradespeople used to add to quotes to protect against sudden spikes in material costs.
Now that building material prices are less volatile, many trades can quote more firmly and competitively, boosting confidence on both sides of the market.
Cheaper materials and stable labour costs
Official material price indicators show key components such as steel beams, imported plywood and aggregates like sand and gravel all cheaper year‑on‑year – a stark contrast to 2022–23 when materials seemed to change price weekly.
Meanwhile, construction wage inflation has cooled sharply, with modest rises well below the double‑digit peaks seen earlier in the decade.
Palaniappan said: “This is good news for homeowners, particularly those choosing to improve rather than move, as well as tradespeople. Lower material volatility and predictable labour costs mean projects are easier to plan and price, allowing builders to win more work and grow their businesses.”
Broader price falls across renovation types
The trend isn’t limited to building work. Recent Checkatrade data shows notable cost reductions across key improvement categories, with fitting and installation jobs such as bathroom, kitchen, and bedroom works all becoming more affordable compared with recent quarters.
This broad‑based easing reflects the wider shift towards pre‑pandemic norms in pricing, meaning those looking to renovate on a budget could be in for a welcome surprise.
For homeowners who’ve delayed work amid years of rising quotes, the message is clear; the window to take advantage of lower costs may be here. And for tradespeople, stable costs and milder competition for materials could support steadier, more sustainable work pipelines in 2026.
