Considering the rise in interest rates, predictions of the longest recession in UK history, ongoing energy crisis and general doom and gloom in the newspapers, it would be logical to assume that home improvements may have taken a bit of a nosedive recently.
Not according to the latest Business Pilot barometer which reveals that leads and sales in the retail sector actually improved by 19% in October compared to September.
According to Business Pilot, this is due to two important factors; house prices and the cost of energy. Despite a drop in house prices since the latest Barometer report was compiled, property value remains relatively high and so does the confidence of homeowners.
That’s offset by a forecast of property prices continuing to drop next year and also reports of millions of homeowners being exposed to higher mortgage rates when their current lending deals expire in the coming months.
It’s a particular worry for all those that rushed to take advantage of the Covid 19 stamp duty holiday, and who overextended on large, two-year fixed term mortgages when rates were around 1.14%. That figure is now more likely to be 5.5%, which on a £300,000 mortgage equates to a rise of £8,184 a year.
Historically however, property prices have always recovered from any ‘blip’ and in the long run it could well be that mortgage rates will also settle down.
In the meantime, high energy bills will give homeowners additional incentive to invest, according to Business Pilot, which points to a clear link between announcements on energy costs and internet search history for energy efficient home improvement products.
That’s reinforced by feedback from a trip to Endurance Doors last week, which has recently opened a new showroom in Brigg, North Lincolnshire. Designed to better serve installer customers and allow homeowners to ‘try before they buy’, Endurance reports that energy efficiency is now one of the key drivers for sales.
We’ll have a more in-depth analysis from Endurance – and a host of other companies – in a special Energy Efficiency supplement that will accompany the December issue of Glass Times magazine.
Retail sales defiant
Considering the rise in interest rates, predictions of the longest recession in UK history, ongoing energy crisis and general doom and gloom in the newspapers, it would be logical to assume that home improvements may have taken a bit of a nosedive recently.
Not according to the latest Business Pilot barometer which reveals that leads and sales in the retail sector actually improved by 19% in October compared to September.
According to Business Pilot, this is due to two important factors; house prices and the cost of energy. Despite a drop in house prices since the latest Barometer report was compiled, property value remains relatively high and so does the confidence of homeowners.
That’s offset by a forecast of property prices continuing to drop next year and also reports of millions of homeowners being exposed to higher mortgage rates when their current lending deals expire in the coming months.
It’s a particular worry for all those that rushed to take advantage of the Covid 19 stamp duty holiday, and who overextended on large, two-year fixed term mortgages when rates were around 1.14%. That figure is now more likely to be 5.5%, which on a £300,000 mortgage equates to a rise of £8,184 a year.
Historically however, property prices have always recovered from any ‘blip’ and in the long run it could well be that mortgage rates will also settle down.
In the meantime, high energy bills will give homeowners additional incentive to invest, according to Business Pilot, which points to a clear link between announcements on energy costs and internet search history for energy efficient home improvement products.
That’s reinforced by feedback from a trip to Endurance Doors last week, which has recently opened a new showroom in Brigg, North Lincolnshire. Designed to better serve installer customers and allow homeowners to ‘try before they buy’, Endurance reports that energy efficiency is now one of the key drivers for sales.
We’ll have a more in-depth analysis from Endurance – and a host of other companies – in a special Energy Efficiency supplement that will accompany the December issue of Glass Times magazine.
Glass Times
Related Articles
Supply partnerships put to the test
Growth, grit… and grounded holidaymakers?
A shock to the system