Home improvement retailers are seeing increased sales as the property market continues its current boom. The sector benefits directly from higher housing activity, which drives demand for renovation goods. Despite a partial market shutdown earlier this year, the industry is on track for record performance in 2020.
Record numbers in property sales
Recent data shows transaction levels unseen for over a decade. New instructions are up 16 per cent and sales agreed are up 24 per cent. The number of properties being withdrawn from the market has dropped by five per cent. Compared to the third quarter of 2019, new instructions have risen by 36 per cent. This equates to 150,000 new properties being marketed. Sales agreed have increased by 53 per cent, or by 160,000 homes. The volume of sales agreed this year has already surpassed the level achieved in 2019. New instructions are currently at 92 per cent of last year’s total despite the market being closed for three months.
Rental market activity is also recovering. While new rental instructions are down one per cent, lets agreed have increased by six per cent. The government has identified the housing market as a key sector for economic recovery during the Covid crisis. This recognition comes as homemovers contribute an additional £10bn in retail spend each year. The average homemover spends around £13,000 on new furnishings and improvements. This makes the group a valuable target for businesses.
Timing the market
Tracking shows that the surge in sales has also increased the number of people who say they want to move. That figure has risen by 76 per cent from the fourth quarter of 2019. The group now stands at over 523,000 people. Those in the ‘moving soon’ category have increased by 57 per cent, equating to 407,389 homemovers. This creates a clear opportunity for the home improvement sector.
Success depends on understanding when to engage with this segment. Contacting customers too soon risks irrelevance while waiting too long can lead to missed opportunities. The customer journey for those moving house can be easily predicted and tracked. This allows home improvement brands to make contact at the precise moment purchasing decisions are being made. Engaging at this stage can boost incremental revenue and improve the bottom line.
