Recent reports suggest the boom in home improvement has come to an end, with the monthly Spending Report from Nationwide noting falls of 7% and 8% in June and July when compared to last year’s numbers. Rising inflation is playing a part in homeowners cutting back on non-essential spending in the run-up to Christmas but how serious an issue is this for the retail industry?
People Are Still Carrying Out DIY Jobs
At first glance, the reduction in home improvement spending appears to affect tradespeople more than shops, as rising labour costs have forced more people to turn to DIY projects when they want to improve their homes. Certain materials have increased in price too, with concrete reinforcing bars up by 58% while cement has climbed by 28% in the last year.
Yet, people can still carry out some upgrades without it costing too much, as it’s many of the heaviest materials that have seen the biggest increases because of the energy needed to produce them. Putting up some shelves or hanging a mirror are the sort of cheaper alternatives to a full-scale refurbishment that a lot of homeowners are giving a try.
Freshening up the walls with wallpaper is another example of how scaled-back home improvements are still getting carried out across the country. In this case, apart from the wallpaper itself, the other material needed is a strong, multi-purpose adhesive to make sure the wallpaper adheres to the wall perfectly. This makes it one of the simplest and most cost-effective ways of updating any room.
More Creative Solutions
In recent months, we’ve seen an increasing number of stories of how homeowners are being more creative when it comes to upgrading their homes. This often means using an existing element in a new, unexpected way – or upcycling. This can be seen in examples such as painting a piece of furniture, using it for a different purpose or using the existing kitchen units but adding trim or new door knobs for a different look.
Another approach that’s become more common is to look for bargain buys that can be used creatively. This could mean buying a basic piece of furniture and converting it into something different. Jobs of this type typically involve buying some sort of materials or tools, but it won’t always be classic home improvement items, so that the effect on the economy is harder to spot.
The Need to Work on Our Homes Won’t Go Away
What the previous points confirm is that our desire to make our homes as attractive as possible isn’t going to go away any time soon. Even when it becomes more expensive to do this, we look for creative ways to improve our houses that won’t cost a fortune. This means that the amount spent on traditional home improvement goods is probably going to carry on dropping but won’t completely stop.
In fact, the latest figures suggest that spending on DIY projects in the UK will probably only fall by 5% in 2022 when compared to last year. But it isn’t likely to be the disaster in the overall retail market that some people predict. This period of cutback is also likely to lead to pent-up demand that could lead to a new boom period once the spending power of British consumers increases again, with consumers possibly adopting the metaverse for shopping purposes by then.
Current economic conditions are making it difficult for homeowners to spend money in the way that they’d like to. This has led to numerous creative solutions that should lessen the impact of reduced spending on the retail sector.
