Cost of living crisis: eight ways to efficiently renovate your home

In the face of a prolonged cost of living crisis characterised by stagnant wages (The Guardian), high inflation (BBC News), and fluctuating interest rates (BBC News), there has been growing consumer confidence, indicating a desire for normalcy among the British population. (City AM) Balancing fiscal responsibility and moments of self-indulgence is crucial for our overall well-being, according to British Vogue.

Even in these unpredictable economic circumstances, making strategic investments in our homes can heighten our sense of financial confidence, uplift our spirits, and elevate the quality and efficiency of our living spaces.

The Current Financial Climate

Wage stagnation

The UK has witnessed 15 years of stagnant wages, resulting in an annual shortfall of £11,000 per worker. Factors such as Brexit, the COVID-19 pandemic and the Ukraine war have contributed to this decline. This wage stagnation underscores a failure of recent economic policy, as reported by the Resolution Foundation. The wage gap between the UK and Germany has also widened significantly, from £500 a year in 2008 to approximately £4,000 today. (The Guardian)

High inflation rate

UK inflation reached 6.7% in August, driven primarily by food price increases, energy expenses and supply disruptions stemming from the Ukraine conflict. This has raised concerns about the real wages of individuals, even though average pay increased by 7.8%. The Bank of England aims to bring inflation down to 5% by late 2023, potentially leading to interest rate hikes. (BBC News)

High interest rate

UK interest rates are amongst the highest in the G7 due to global rate increases. While the Bank of England appears to have ceased its series of rate hikes, this has impacted mortgage rates, raising concerns for borrowers facing expiring deals in 2023-2024. “Borrowers still face the likelihood of having to pay hundreds of pounds more each month compared to their expiring deal.” (BBC News)

Buying a home in the UK has become tougher due to higher interest rates. The typical mortgage now consumes 35% of an average single full-time salary, up from 30% in the past year, akin to 2007 levels. The average UK home still costs 6.7 times the average earnings, and first-time buyers typically buy homes costing 5.8 times the average single full-time salary. (Reuters)

Consumer confidence on the rise

Yet, consumer confidence has increased, with the Consumer Confidence Index rising by four points in September. Indicating a yearning for a return to normalcy among the British population and an increase in the willingness to spend. Nevertheless, many households continue to struggle with the cost of living. (City AM)

So, what can we do?

Amidst these financial challenges, home renovation may feel like an overwhelming and far off dream. Yet, there is hope and potential solutions.

Homeowners can tackle interior design and DIY projects by renovating smartly, through creative and budget-conscious choices, while researching potential government incentives to maximise cost-effectiveness.

Eight Ways to Efficiently Renovate Your Home

Balancing interior design with the cost of living crisis requires making thoughtful choices. So, here are eight ways to upgrade your home's aesthetic and energy efficiency while being cost-effective, as recommended by the experts from The Mobility Furniture Company:

1. Minimalism

Embrace a minimalist design philosophy to declutter and simplify your living space, saving money in the process.

Minimalism is a lifestyle that promotes simplification by reducing possessions, distractions, and unnecessary commitments. It emphasises intention, purpose, and clarity, not deprivation. Minimalism saves money, reduces stress, and fosters sustainability and mindful consumption, benefiting both individuals and the environment (Medium).

2. Upcycled decor

Repurpose vintage or charity shop finds or items you already have for stylish and budget-friendly decor. Afterall, “upcycled furniture is not only affordable, it gives you an opportunity to work on DIY projects that allow you to exercise considerable creative muscle, and it is more sustainable than buying a new piece” (Architectural Digest).

“According to a 2018/19 report by The North London Waste Authority, 22 million pieces of furniture are discarded each year in the UK, the majority of which goes directly to landfill. Climate action NGO WRAP estimates this to be the annual fate of 670,000 tonnes of furniture – much of it reusable” (Future News)

It’s about “doing your part to combat the climate crisis, but in a way that’s not only practical and beautiful but feel-good too.” (Whitney Falk, CEO of ZZ Driggs, Architectural Digest)

3. Multi-functional living spaces

Invest in furniture that serves dual purposes, such as a sofa bed or a dining table with storage, to maximise space and functionality.

To create a versatile living space, reconfigure furniture for dining and use circular tables in corners. Design a functional home office with a sleek desk, cosy seating and good lighting. Maintain a cohesive colour scheme using Scandi or modern tones, choose light furniture and mix textures. Add a low coffee table, rugs and floor cushions for a welcoming atmosphere, integrate smart technology, and create cosy corners for various activities, ensuring comfort and flexibility for everyone. (John Lewis)

4. Window treatments

Use curtains, shades and blinds for privacy, energy efficiency and added style. Double or triple glazing and heavy curtains can enhance insulation, reduce drafts and stabilise indoor temperatures. All of which can reduce energy costs and your carbon footprint. (Energy Saving Trust)

“Window treatments are the perfect way to enhance or soften a room…Patterned draperies can add depth and create a focal point in a room, whereas natural woven or solid-textured panels add an additional layer of detail to a space. Additionally, a sheer panel acts as a petticoat, gently adding a soft layer that blocks unsightly objects or harsh light.” (Architectural Digest)

5. Insulation

Enhance home insulation to minimise energy usage and maintain comfortable indoor temperatures.

By adding an insulating jacket to your hot water cylinder, you can save £45 (£40 in NI) annually in heating costs and reduce carbon dioxide emissions by 155kg (215kg in NI). (Energy Saving Trust)

6. Water efficiency

Switch to low-flow toilets, faucets and showerheads to substantially cut water usage and costs without sacrificing functionality.

Water heating can be conserved by fixing leaks, low-flow fixtures, insulating hot water lines, and choosing energy efficient A+++ rated white goods, such as dishwashers and washing machines. However, “when it comes to energy efficiency, one size does not fit all, and you’ll find that labels are slightly different for different product types.” (Currys)

7. Smart home devices

Invest in smart home devices to save energy and control various aspects of your home remotely. “By giving you more control over the things in your home that use energy, smart-home devices can be part of an energy-saving plan.” (New York Times)

Additionally “smart thermostatic radiator valves (TRVs) can also reduce your heating costs. These allow you to remotely control temperatures on a room-by-room basis.” (The Guardian)

8. Heated recliner chair

Investing in a heated recliner chair is a highly energy-efficient option, as it can cost only 20p per day to run, £72.80 per year, or £1.40 per week, saving on central heating expenses. A heated recliner chair combines the benefits of an adjustable recliner, including support, comfort, and health advantages, with a built-in heating pad that warms your back, hips, and legs where achy joints feel the cold most.

Overall, in an era marked by a relentless cost of living crisis, soaring inflation rates, stagnant wages, and high mortgage interest rates, the idea of renovating your home may seem like a distant reality.

Despite these challenges, homeowners can still renovate smartly by making thoughtful and creative choices to enhance their living spaces and energy efficiency without overspending. Balancing fiscal responsibility and moments of self-indulgence are crucial for well-being.

Before starting any renovation, it’s essential to evaluate your living situation and budget. Focus on investments that align with your financial goals, while exploring local incentives and rebates to maximise cost-effectiveness.

Disclaimer: This story has been researched by The Mobility Furniture Company; The information provided consists of faithfully reported facts and figures from reputable news sources, and was accurate as of October 3rd, 2023.