Visiting decorated houses has become an affordable activity for families as research reveals 36% of parents make it an annual tradition, while 25% enjoy it as a free way to get their children excited for Christmas. Christmas decorations are a source of comfort and emotional well-being as half of us say decorations improve our mood.

Christmas lights also strengthen community bonds, with 25% of people feeling closer to their neighbours when decorations go up. Decorations transform streets into festive havens, as 60% of Brits agree their neighbourhoods feel more welcoming during the season. These shared experiences help foster a sense of togetherness, with 9% of consumers saying Christmas lights spark conversations they wouldn’t usually have, according to a new report from Temu.

Consumer champion Kate Hardcastle said: “Christmas decorations are so much more than a visual treat—they’re a way for families and communities to connect, spark joy, and create lasting memories, even on a budget. This year, affordability and sustainability are key drivers, with many shoppers looking for deals on versatile, energy-efficient items like LED lights or exploring natural, eco-friendly decorations.”

Kate’s Top Tips For Budget Friendly Christmas Home Design

  1. Get Creative with DIY Projects
    Personalise your decorations by making them yourself. Simple crafts like paper snowflakes, hand-painted baubles, or wreaths made from natural materials add a unique and heartfelt touch. Many online platforms provide affordable crafting supplies and inspiration, making it easier than ever to create memorable DIY decorations while sticking to a budget.
  2. Look for Multi-Use and Timeless Items
    Invest in versatile decorations that can be reused year after year, such as neutral wreaths, classic fairy lights, or multi-purpose LED displays. Look for online platforms that offer bundled items or timeless designs, providing excellent value for money while reducing waste.
  3. Focus on Key Areas
    You don’t need to decorate every inch of your home to create a festive impact. Concentrate on high-visibility spots like your Christmas tree, mantelpiece, or front door. A statement wreath or a strategically placed string of lights can set the holiday mood without requiring a large budget. Online stores often feature curated inspiration and bundles to help you maximise your efforts in key areas.
  4. Take Advantage of LED and Sustainable Technology
    Opt for energy-efficient LED lighting, and if possible, choose solar-powered options for outdoor displays. These cost less to run, are environmentally friendly, and allow you to go all out with your decorating plans while keeping your utility bills manageable.
  5. Plan Ahead and Budget Wisely
    Avoid overspending by setting a clear budget for your decorations and sticking to it. Shop early to take advantage of festive deals or post-holiday clearance events to stock up for next year at a fraction of the cost. Online marketplaces often feature price comparisons and exclusive discounts, helping you plan your purchases smartly and efficiently.
  6. Bundle Purchases for Savings
    Many retailers and online platforms offer discounts on bundled items like ornaments, garlands, and lights. Buying in sets can be significantly more cost-effective than purchasing items individually, especially during holiday promotions or flash sales.
  7. Make It Fun and Memorable
    Decorating is about more than just aesthetics—it’s about creating memories. Whether it’s crafting with the family, using decorations from years past, or hunting for bargains, the process of decorating can be just as rewarding as the final look. With online resources providing inspiration and tools, making it special has never been easier or more affordable.
  8. Embrace Sustainable and Natural Materials
    Eco-friendly decorating can be both beautiful and cost-effective. Use real greenery like holly, ivy, or pine branches, which can often be sourced locally—or even from your garden. Add pinecones, dried oranges, and cinnamon sticks for a festive fragrance. For affordable, sustainable decorations, explore online platforms offering biodegradable ornaments or reusable pieces that reduce waste and cost.