Furniture remained the largest category for UK point-of-sale finance spending during the first quarter of 2026, according to new data from V12 Retail Finance.
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Total finance values across the platform increased 4% year-on-year between January and March, with furniture accounting for nearly 57% of all finance values. In February alone, the category represented almost 59% of new business, marking a record month for furniture finance demand.
V12 Retail Finance said the figures reflect a more selective consumer mindset, with households prioritising purchases linked to the home and personal wellbeing, while showing more caution in discretionary sectors such as jewellery and art.
Home improvements was one of the fastest-growing segments, with finance values rising by around one third year-on-year. The category has nearly doubled in quarterly value since Q1 2024, underlining sustained consumer investment in existing homes.
Andrew Phillips, managing director of V12 Retail Finance, said consumers remain willing to make major purchases, but are doing so more intentionally in an uncertain economic and geopolitical climate.
The data also suggests that while store footfall may have softened, shoppers who do engage are spending more per transaction. Retailers are responding by testing longer-term interest-free finance offers and more flexible payment structures.
Applicants aged 25 to 54 accounted for around 71% of funded applications, with the 35 to 44 age group representing the largest share.
The results indicate that finance remains an increasingly mainstream tool for managing significant purchases, particularly in furniture and home-related categories.
Source: www.furniturenews.net
