If you're planning home renovations in 2025, you're entering one of the most difficult years in recent memory for UK refurbishments. Higher construction costs, tougher planning hurdles, and economic uncertainty are all adding pressure. Here’s what’s happening—and why it matters.

Material and Labour Costs Are Climbing Fast

According to Homebuilding & Renovating, building material prices have risen by over 37% since 2020. Items such as insulation and pre-cast concrete have spiked by more than 60%, and labour hasn’t been spared either—electricians’ rates rose by 14.4%, with scaffolders not far behind at 9.3%.

That means every part of a renovation—from structural work to finishing touches—is costing significantly more in 2025 than it would have just a couple of years ago.

Planning Approvals Have Slumped

Making things harder still, getting permission to renovate is no longer straightforward. In the year to March 2025, only 151,177 householder planning permissions were granted in England—27% below the ten-year average and 8% lower than the previous year, according to Savills. This drop is the lowest level of approvals in over a decade.

Despite increased home sales and growing demand for quality living spaces, many would-be renovators are simply giving up when faced with long waits and red tape.

Renovation Projects Are Being Rethought

With higher costs and slower permissions, homeowners are having to rethink their renovation plans. Many are turning to permitted development rights or breaking large projects into manageable phases to minimise risk.

As Homebuilding & Renovating puts it, “Planning delays, high build costs and interest rate volatility mean that homeowners are scaling back or shelving projects entirely.”

How to Navigate Renovating in 2025

Break it into stages: Phased renovations let you complete priority work now and wait on less urgent elements. This reduces financial pressure and avoids planning hurdles.

Lock in prices early: The BCIS forecasts further cost increases—up to 12% in building costs and 15% in tender prices by 2030. If you’ve had a quote, act quickly before prices rise again.

Focus on value: Energy-efficient upgrades like new insulation, double glazing, or modern boilers not only reduce future bills but also increase property value.

What Does It Cost in 2025?

Typical renovation costs in 2025 vary widely, but averages include:

• £1,800–£3,500 per m² for single-storey extensions

• £1,650–£3,250 per m² for two-storey builds

These figures are cited by Livingetc, and actual costs can climb higher depending on region and finish quality.

More than half of homeowners are now exceeding their budgets mid-project due to unforeseen issues or rising labour/material costs, according to FT.com.

What It Means for South-East Homeowners

If you're based in London, Kent or surrounding areas:

• Be ready for longer lead times and higher upfront investment

• Use planning-free options when available

• Expect greater scrutiny and delays when submitting planning applications

How Barry Turner & Son Can Help

At Barry Turner & Son, we help our clients in South London, East London and Kent avoid common pitfalls by:

• Offering clear fixed-price quotes

• Managing phased projects that suit modern conditions

• Advising on permitted development opportunities to bypass long approvals

• Staying current with material availability and cost trends

If you’re planning work this year, we’ll help you find a smart, efficient path forward.

Contact us today to book a consultation or get started with a realistic renovation plan.