New quarterly data from V12 Retail Finance shows that UK consumers continued to turn to point-of-sale finance for high-value purchases in the first three months of 2026, with total finance values across the platform growing 4 per cent between January and March, compared to Q1 2025.
However, beneath the headline figure, V12’s data reveals an increasingly selective pattern of consumer behaviour. Home-related and healthcare categories drove the majority of growth, while traditionally strong discretionary sectors such as jewellery and art continued to soften. The pattern suggests that UK households are directing spending toward areas they consider essential or investment-grade, while exercising greater restraint elsewhere.
Andrew Phillips, Managing Director of V12 Retail Finance said, “The first quarter of 2026 presents a clear picture of a consumer who remains willing to make significant financial commitments, but is doing so with greater intentionality.
“Categories linked to the home and to personal health continue to perform well, which suggests that consumers are prioritising spending they view as an investment in their quality of life. In more discretionary areas, the appetite is noticeably more cautious, and that distinction has become more pronounced over the past twelve months.
“The underlying story is one of a consumer navigating an uncertain macroeconomic and geopolitical environment by choosing to spend on functional necessities over discretionary luxuries. Until that broader picture settles, we expect households to continue directing their commitments toward purchases they view as essential rather than aspirational.”
Furniture remained the dominant category by a significant margin, accounting for close to 57 per cent of all finance values in Q1 2026, and growing 4 per cent year-on-year. February was a particularly strong month for the category, with furniture finance values reaching a record level for the month and accounting for nearly 59 per cent of all new business.
Home improvements maintained its position as one of the fastest-growing sectors in V12’s portfolio, with Q1 finance values rising by approximately a third year on year. The category has now nearly doubled in quarterly value since Q1 2024, extending the multi-year pattern of increased investment in property-related projects noted in V12’s earlier data releases.
The sustained strength of these categories is consistent with wider official data. According to the Office for National Statistics (ONS), retail sales volumes in the three months to February 2026 were 3 per cent higher than in the same period a year earlier[1]. Separate ONS construction data paints a similar picture: while total construction output fell 1 per cent year on year in February 2026, private housing repair and maintenance output rose 13.1 per cent[2], suggesting that homeowners are investing in existing property rather than moving.
Share