Various factors have conspired to push up the cost of home improvements over the last few years, including Brexit, Covid-19 and the war in Ukraine.
These events have disrupted supply chains, restricted the availability of materials, and impacted the supply of labour.
So how are things looking for 2025? We've spoken to experts and evaluated prices to find out if now is the right time to renovate your kitchen.
What's going on with prices?
Labour costs
A shortage of labour drives up costs, as more homeowners compete for skilled workers.
Brexit played a part in this shortage: 'The most significant losses to the labour force were EU workers between 25 and 39 years old,' says Noble. 'EU workers who generally go back home after projects are finished have not been replaced as sponsored visa requirements make it more difficult.
'There has also been a significant decrease in UK-born construction workers between 45 and 59 years old, due to older self-employed workers retiring early.'
If you need to renovate sooner rather than later, this may be a cost that you have to accept: 'The skilled worker issue still remains and it is unlikely to be sorted quickly,' adds Noble.
Material costs
But there is some good news – material prices have begun to normalise.
'Construction materials prices in November 2024 were flat compared with a year ago,' says Noble.
This is due in a large part to supply chains returning to normal, but there's a chance they will begin to increase again: 'We would expect to see materials price rises in the first half of this year, due to the impacts of higher energy and wages costs on manufacturers,' adds Noble.
However, these fluctuations are unlikely to be as dramatic as those seen post-pandemic.
Other factors to consider
If you're planning on renovating in order to sell your home, consider your return on investment.
'As long as house prices are rising faster than the cost of improvements, there is more of a rate of return,' says Noble.
House prices increased by around 3% in 2024, according to data from the Land Registry. And experts have forecast similar rises this year, including Rightmove (rise of 4%), Nationwide (2-4%) and Zoopla (2.5%).
But the rate of growth is better in some areas of the UK than others: 'House prices in 2024 Q4 in Northern England were 4.9% higher than a year earlier,' says Noble, 'while the lowest house price growth was in London at only 0.5%, and this is also where it is most expensive to make home improvements.'
'Prices in Northern Ireland were 7.1% higher than a year ago, house prices in Scotland were 4.4% higher, and in Wales 2.7% higher.'
The Which? verdict: should you renovate, or wait?
Whether this is the right time to renovate your kitchen depends on your situation. If your current setup doesn't work, you need more space, or you're renovating to sell, then getting the work done sooner rather than later is probably the right choice.
Those who opted to wait in 2024, are more likely to go for it in 2025, and with lower material costs, it might be a good time to take the plunge and book in your builder before everyone else does.
But if you're not in a hurry, or are planning a more extensive – and therefore costly – project, it could be worth waiting to see if labour costs and interest rates come down in the next year or two (especially if you're planning to borrow to fund it).
If you're renovating to sell, check the house prices in your area beforehand, or consult with a local estate agent, so you have an idea of the kind of return on investment you might expect.
Not sure whether to move or improve? ReadHow to save money on your kitchen renovation
If you do want to go ahead with your kitchen renovation, here are our top money-saving tips:
More Which? money saving advice
Which? members can access our home improvement cost guides, which include typical prices for renovations from the Building Cost Information Service:
source https://www.which.co.uk/news/article/is-now-the-right-time-to-renovate-your-kitchen-ajEZ23L4J7xj