The property boom in 2020 has driven increased demand for home improvement products, according to the latest Property & Homemover’s Report. Since July, the housing market has seen transaction levels not witnessed in over a decade, with new instructions up 16% and sales agreed rising 24%. Despite Lockdown 2.0 in England, the market remains robust, positioning 2020 as a record year for property transactions.
Record-Breaking Property Market
Compared to Q3 2019, new instructions have climbed by 36%, equivalent to 150,000 new properties being marketed. Sales agreed have jumped by 53%, or 160,000 homes. Despite a market shutdown in April, May, and June, the volume of sales agreed this year has already surpassed 2019 levels. New instructions are at 92% of last year’s total. The number of properties withdrawn from the market has decreased by 5%, further showing market resilience.
The rental market shows signs of recovery, with lets agreed up 6%. New instructions are down 1% but are expected to rise, indicating continued sector growth.
Home Improvement Spending on the Rise
Homemovers contribute significantly to the economy, adding £10 billion in retail spend annually. On average, a homemover spends around £13,000 on furnishings and improvements. This spending has made the housing market central to economic recovery during the Covid crisis. The Chancellor has identified the housing market as a key driver to kick-start the UK economy, emphasizing its importance in these turbulent times.
Identifying who is moving is essential for home improvement retailers. The Homemover Wave tracker shows a 76% increase in people expressing a desire to move since Q4 2019, totaling over 523,000 individuals. Those planning to move soon have risen by 57%, reaching 407,389 homemovers. This surge in potential movers presents a significant opportunity for retailers to engage with a valuable customer segment.
Timing is Key for Retailers
Home improvement brands must carefully time their engagement to capitalize on this demand. Contacting customers too early may lead to irrelevance, while waiting too long risks losing them to competitors. By predicting and tracking the customer journey, brands can connect with homemovers during decision-making moments, increasing revenue and strengthening their position. Understanding the optimal timing for engagement is key to maximizing the potential of this booming market.