The UK property market is experiencing a surge that is directly translating into higher demand for home improvement products. This correlation between housing sales and retail spend is not new, but the current scale of the boom has amplified its impact significantly. As transactions increase, so does the need for DIY materials, furnishings, and renovation services. The data suggests that 2020 is shaping up to be a record year for the sector, despite the disruptions caused by the pandemic.
Recent figures from the Property & Homemover’s Report highlight the momentum in the market. Since July, transaction levels have reached highs unseen for over a decade. New instructions are up 16 per cent, while sales agreed have risen by 24 per cent. Conversely, the number of properties being withdrawn from the market has dropped by five per cent.
When compared to the third quarter of 2019, new instructions have climbed by 36 per cent, representing 150,000 new properties being marketed. Sales agreed have increased by 53 per cent, or 160,000 homes. The volume of sales agreed this year has already surpassed the level achieved in 2019. New instructions currently stand at 92 per cent of last year’s total, even after an effective market shut down in April, May, and June.
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Rental market shows signs of recovery
The positive trends are not limited to sales. The rental sector is also showing signs of recovery, though the pace is slightly different. New instructions for rentals are currently down one per cent, but these figures are expected to rise in the coming months.
Lets agreed have increased by six per cent, indicating a gradual stabilization in this part of the market. This broader activity supports the overall health of the residential sector, which in turn fuels the broader economy. The interplay between buying and renting continues to drive consumer behavior in ways that retailers are closely monitoring.
Homemovers have long been recognized as a significant force in retail. Research indicates that this group contributes an additional £10bn in retail spend to the economy each year. The average homemover outlays around £13,000 on new furnishings and improvements alone. This substantial spending power explains why the Chancellor has identified the housing market as a key kick-starter for the UK economy.
As the country moves through the ongoing challenges of the pandemic, the shift of people into new homes provides a tangible boost to commercial activity. The sheer volume of transactions means that even small percentage changes result in millions of pounds in additional spending.
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Targeting the right moment in the journey
For brands in the home improvements sector, understanding exactly who is moving house is essential. It allows them to engage with this valuable segment of customers at the right time. The Homemover Wave tracker shows that the surge in property sales has resulted in a significant increase in people who say they ‘want to move’. This category is up by 76 per cent from Q4 of 2019 and now stands at over 523,000 people.
Those in the ‘moving soon’ category have also increased by 57 per cent over the same time frame. This equates to 407,389 homemovers who are ready to act. The timing of engagement is everything in this space. Contacting a customer too soon risks irrelevance, while waiting too long can mean losing out to a competitor.
The customer journey for people moving house is predictable and trackable. This predictability allows home improvement brands to make contact precisely when purchasing decisions are being made. By aligning marketing efforts with these specific stages, companies can boost incremental revenue and bolster the bottom line. The data provides a clear roadmap for when to push for the sale, turning a general market boom into targeted commercial wins for specific firms.
