Page 34 - HW July 2022

global eyes
British new builds and DIY soften post-Covid
NOT ONLY IS the UK recording the
lowest level of planning approvals since September 2021 with residential planning applications at their lowest level since May 2020, but UK DIY spending is also set for a £200 million fall, following the easing of COVID-19 restrictions and cost of living increases.
On top of the average price of building materials and home improvement supplies in the UK having increased by more than 10% in the June 2022 quarter, the rising cost of living is also affecting tradies and they are also feeling the pinch.
biggest increases in Easter 2022 over 2021 spending UK consumers entertaining or visiting friends & family, eating out or visiting pubs and restaurants.
“Suddenly, DIY and tending to homes is on the backburner and this was particularly clear over Easter, when there was a big uplift in socialising, eating out and drinking and a real fall in doing jobs around the home, a trend that looks to have subsequently been repeated over the Jubilee weekend.”
Plus, with everyday costs rising, Brits’ spending power is lessening so they
trends have already started impacting financial results of the likes of B&Q and Wickes, which remain up on two years ago but are starting to see year-on-year falls in revenue.
“Given that the post-lockdown ‘mini boom’ in socializing and holidays is set to continue, and that the cost-of-living crisis shows no sign of abating either, it is likely that DIY retailers are going to continue to come under pressure for the rest of the year at least,” says GobalData.
www.globaldata.com
UK consents, approvals also weaken
– The latest data from construction industry intelligence provider, Barbour ABI, indicates that April’s downward trend has continued into May and could signal the end of the post-Covid construction boom.
Tom Hall, Barbour ABI’s Chief Economist says: “April saw a fairly dramatic fall in activity from high levels to a more mixed picture.
“May’s data was a continuation of this new trend and indicates that construction may well be in a new, lower phase of activity after its post Covid-19 expansion – most likely due to uncertainty over the strength of the UK economy to weather the cost-of-living crisis and the wider
DIY on the back burner as Brits get out & about – During the pandemic, data and analytics company GlobalData’s Monthly DIY Tracker found that the UK DIY sector enjoyed a £500 million boost as consumers, prevented from going out, instead invested time and energy doing up their homes and gardens.
However, the DIY Tracker now shows that spending on home improvement
is set for a £200 million fall, its biggest drop in decades, thanks to cost-of-living increases, the reopening of bars and restaurants and foreign holidays going back on the agenda.
Matt Piner, Head of Retail at GlobalData, says of the shift: “This
is the first spring/summer without restrictions in three years and people are understandably keen to go out and enjoy themselves, as well as get back to holidaying abroad.
So instead of fettling their homes, the
are prioritising and, as a result, DIY is becoming one of the main sectors to lose out with DIY spending in 2022 expected to fall by around 5% on 2021.
GlobalData’s Matt Piner adds that these
geopolitical outlook.”
Indeed, May was the lowest month
since September 2021 for planning approvals, with virtually every sector recording a decrease on April levels.
32 NZHJ | JULY 2022
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