Houzz Inc. has released its 2025 UK Houzz State of the Industry report, offering a detailed outlook for the year ahead and a review of the challenges and performance seen by the residential construction and design sectors in 2024.
The findings are based on insights from professionals within the Houzz UK community, giving a comprehensive overview of the trends, challenges, and opportunities that lie ahead.
The sentiment heading into 2025 is one of cautious optimism. Despite a tough 2024, 40% of industry professionals expect a good or very good year ahead. Moreover, 57% of respondents predict revenue growth, reflecting a four percentage-point increase from the previous year. This shift towards optimism follows a difficult year in which many professionals faced declines in revenue and profitability.
Marine Sargsyan, a Houzz economist, remarked, “After navigating a difficult two years, home professionals are approaching 2025 with a sense of cautious optimism,”
“Pros report that they’re implementing new processes for operational efficiency and client communication, and making strategic investments in technology to address the challenges they faced last year.”
Key Insights from the 2025 UK Houzz State of the Industry Report:
- Adapting for Efficiency and Growth:
Marine Sargsyan, an economist at Houzz, explains that professionals are focusing on improving efficiency and client communication. Many businesses are investing in technology to overcome challenges faced in the prior year, indicating a proactive approach to market uncertainty. - Investing in Key Areas for 2025:
In response to ongoing challenges, 87% of industry professionals plan to prioritise investments in areas such as operational efficiency, with 42% focusing on streamlining processes to boost productivity. Improving client communication (35%) and optimising sales processes (37%) are also high priorities, with architects placing a strong emphasis on the latter (45%). - Technology Utilisation on the Rise:
Software remains essential for many firms in the sector. A significant portion of architects (76%) and interior designers (69%) rely on drafting and rendering software, while also using tools for invoicing, marketing, CRM, and website management.
2025 UK State of the Industry: additional findings:
- Interior Designers Lead with Optimism:
Nearly 44% of interior designers forecast a successful year, with 69% expecting revenue growth and 44% anticipating greater demand for their services. - Easing Hiring Challenges:
The recruitment landscape has improved, with 25% of professionals planning to expand their teams in 2025, marking a four percentage-point increase year-on-year. The challenges of hiring and subcontractor shortages have also decreased significantly, dropping from 9% and 13% in 2024 to 5% each in 2025. - Rising Costs:
53% of professionals expect costs to rise, with design and build firms, architects, and interior designers being the most affected (64%, 49%, and 36%, respectively). However, price volatility and material availability have seen notable improvements, easing some concerns. - Revenue and Profitability Declines in 2024:
More than 60% of firms reported reduced profitability in 2024, and 47% reported lower revenue compared to 2023. Architecture practices were the most affected, with 72% reporting a decline in profitability.
For a deeper look into the 2025 UK Houzz State of the Industry report, click here to read the full findings.
About Houzz
Houzz is the leading online platform for home renovation and design, connecting millions of homeowners with trusted professionals. Houzz Pro, the company’s all-in-one project management and design software, helps construction and design professionals win more business, streamline operations, and collaborate with clients. With more than 3 million professionals and 70 million homeowners using the platform globally, Houzz is the go-to resource for home improvement inspiration, advice, and service provider connections.
