Birmingham has taken the top spot for home improvement loans in 2025, followed by Sheffield and Cardiff, a report has found.
According to figures from Pepper Money, home improvement loans make up 9.7% of all borrowing, the second-most popular reason for taking out a loan in the UK.
Birmingham accounts for 13.4% of home improvement loans, Sheffield makes up 9.5% and Cardiff accounts for 9.1%.
The average loan amount for Birmingham is estimated at £40,393, while Sheffield is slightly less at £35,077 and Cardiff comes to £36,636.
The report found that the rising demand for home improvement loans showed a “shift in consumer borrowing habits”.
It explained that debt consolidation was still popular, and homeowners were “prioritising home investments over other expenses”.
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