Home renovation and design platform Houzz has found professionals are “bullish” about business momentum for 2022.

According to the 2022 Houzz UK State of the Industry report, businesses have a confident outlook for 2022, with more than three-quarters anticipating revenue growth (76%) and two-thirds expecting profits to increase (66%).

It follows strong 2021 results with more companies reporting year-on-year revenue growth, as compared to the previous four years (69%).

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Based on data reported by industry professionals in the Houzz community, the report revealed design and build firms were most optimistic about 2022 (88%), followed by interior designers and architects (80% and 76% respectively).

Nearly three quarters of design and build firms and architects reported an increase in gross revenue in 2021 (72%), followed by interior designers (70%).

Companies across all industry sectors plan to grow revenue in 2022 by bringing in larger budget projects (60%).

Businesses have also increased their headcount with more than a quarter recruiting (29%), compared to 17% of businesses in 2020.

Design and build firms were the most likely to hire last year (35%), compared with architect and interior designers (29% and 26%).

Hiring is also expected to continue among nearly two in five of businesses in 2022 (38%) to support revenue growth.

This is despite increases in the cost of doing business, with more than three quarters of business reporting higher costs (77%).

Design and build firms have been most impacted by rising costs (94%) followed by interior designers and architects (70 and 65%, respectively).

Price volatility of products and materials was one of the top challenges reported by one in five businesses (22%).

Senior economist for Houzz Marine Sargsyan said: “Following a successful year for the home renovation and design industry, the findings from the Houzz State of the Industry report show that professionals are bullish that momentum will continue throughout 2022.”

She added: “The positive outlook is prevalent across industry groups from interior designers to builders, despite global challenges and increased costs of doing business.”