The real opportunities from second-hand marketplaces have yet to be unlocked

By Kim Faura, Joint Managing Director at Gumtree

The circular economy is often talked about in relation to tackling climate change, but in 2025 it has become an economic solution too. The second-hand market is now performing a vital function in helping households stay afloat: keeping essential goods affordable and opening up new ways to earn. As a platform used by millions, Gumtree has a front-row view of how this shift is shaping consumer behaviour and why it should matter to policymakers.

That shift is most clearly felt in the place where costs hit hardest and feel most personal: the home. Furniture is essential but expensive. According to the ONS, the price of new household goods has risen by 15% since 2022, so it is no surprise that families are looking elsewhere for affordable ways to furnish the spaces that shape their daily lives. Gumtree’s new Home Index: Furnishing Britain offers one of the clearest pictures yet of how people are adapting and why policymakers should pay attention.

The data shows that the second-hand home economy is expanding quickly. Gumtree’s Home category listings have grown by more than 11% in the past year, reflecting a surge in demand from households seeking value. Buying second-hand furniture on Gumtree typically saves around 20% compared with purchasing new. Those savings are incredibly welcome as households feel the squeeze.

Yet this story is not only about what people are buying. It is also about how they are earning. Gumtree is seeing a steady increase in repeat sellers – people listing five or more items each month as a way to bring in extra income. In a difficult economy, second-hand marketplaces are becoming a platform for micro-enterprise, giving individuals a simple, low-barrier route to support their household budgets.

None of this works without trust. Safe, responsible trading is the foundation of a healthy second-hand economy. That is why Gumtree continues to invest heavily in moderation, user guidance and partnerships with consumer safety organisations. But responsible behaviour also needs to be matched by responsible competition and here, government has a critical role.

As the UK begins implementing the Digital Markets, Competition and Consumers Act, ministers must ensure that platforms which prioritise safety, transparency and user protections are not disadvantaged by tech giants able to hard-wire their own services into dominant ecosystems. Fair competition is essential if consumers are to have real choice and confidence in the market.

At the same time, policymakers should recognise the broader economic resilience generated by second-hand marketplaces. There is a clear opportunity to help more people participate confidently and safely: through community-based digital skills programmes or small-scale local pilots that teach people how to list items, price goods or spot scams. By empowering more people to sell and buy online, government can boost household incomes and expand access to affordable essentials.

If ministers are serious about boosting household resilience and building a circular economy that works for everyone, they must get behind responsible online marketplaces in a meaningful way. The second-hand economy is where millions of people are making ends meet. It is time policy caught up.