Homeowners considering a renovation in 2026 face a complex financial picture. Construction costs continue to be influenced by labour shortages and shifting material prices, making it essential to build realistic budgets before work begins.
The Expert’s Advice
Darren Drumm, Founder of Drumm Carpentry, Kitchens & Wardrobes, says there is no fixed renovation price because every project differs. Basic improvement works often cost between €800 and €1,200 per m² (£680-£1,020), while extensive retrofits and full-property renovations can range from €2,500 to €3,500+ per m² (£2,125-£2,975+).
For a standard three-bedroom semi-detached property, homeowners should prepare for:
- Renovation costs of approximately €150,000-€250,000 (£127,000-£212,000).
- Extra charges for VAT, skip hire and professional services.
- A contingency budget of at least 15%.
According to Darren, labour remains one of the most significant expenses in modern renovation projects.
“Demand for electricians, carpenters, plumbers and retrofit specialists remains high, with many trades booked out months in advance. The more complex the work becomes, the faster costs rise. Structural changes such as removing walls or relocating plumbing during a fitted kitchen renovation often require multiple trades and significantly more labour hours.”
More cosmetic projects, however, are often easier to manage from a budgeting perspective. Whether renovating a bedroom or updating a bathroom, Darren recommends simplifying plans where possible to help control spending.
Homeowners can often reduce costs by:
- Keeping existing plumbing and electrical layouts unchanged.
- Choosing mid-range materials and finishes.
- Reusing or improving existing fixtures and fittings.
- Completing renovations in stages.
Darren also highlights the importance of investing properly in key areas of the home.
“Electrical work, plumbing, insulation and structural integrity should always remain a priority. There is some good news for homeowners planning energy-efficient upgrades, though, as grants and green loans are continuing to make renovations more achievable in 2026.”
Irish homeowners may qualify for assistance with insulation projects and energy-efficient window and door replacements. Green finance products are also available, often with rates around 6-7% APR.
In the UK, support measures such as the Warm Homes Plan may help fund improvements, while additional low-interest green lending schemes are expected to support energy-saving upgrades.