Demand for home improvement down as homeowners rein in spending

IndustryNews Wed 14th Jun 2023 by KBBFocus

Demand for home improvement down as homeowners rein in spending

Demand for home improvement down as homeowners rein in spending

New research from the find-a-tradesperson platform, Rated People has revealed the construction industry is heading for a ‘home improvement squeeze’ in 2023 as tradespeople continue to battle rising costs, and consumer demand is down. The findings come from this year’s edition of the Rated People Home Improvement Trends Report, which analysed 1.1million home improvement jobs posted through the Rated People platform by UK homeowners to uncover the impact of the cost-of-living crisis on tradespeople and homeowners. 

Following the ‘home improvement boom’ where record numbers of homeowners improved their homes over the past few years, just 35% of homeowners are now planning home improvements this year, which is a sizeable drop from 52% in 2022. 

The price of materials and operational costs have increased substantially over the past two years, and the vast majority of tradespeople have needed to pass these costs on to homeowners to stay in business. In 2022, 94% of UK tradespeople experienced rising costs, and this year, 92% of tradespeople say their costs are increasing further. This has made home improvements less affordable for homeowners who are already struggling with the wider pressures of the cost-of-living crisis.

This year alone, 86% of tradespeople are reported to be raising their prices for homeowners, and on average tradespeople are increasing their prices by 17%. As a result, almost three in four (71%) tradespeople expect to have work drop out this year and 77% think homeowner demand will reduce.  

Adrienne Minster, CEO of Rated People, said: “The big home improvement boom of past years was incredible for tradespeople. But now, with fewer homeowners able to have work done, 2023 is set to be a more challenging landscape for them to navigate. We’re committed to helping skilled tradespeople across the UK to weather the storm and find the work that’s available in their areas – as well as future-proof their businesses – as homeowners rein in spending.” 

Top 12 trades that expect to have work drop out in 2023 because of rising prices 
1.      Gardeners/ landscape gardeners  100% 
2.      Bathroom fitters  88% 
3.      Handypeople  78% 
4.      Builders 77% 
5.      Gas/ heating engineers  77% 
6.      Carpenters/ joiners  75% 
7.      Tilers  75% 
8.      Plasterers/ renderers  71% 
9.      Painters and decorators  69% 
10.    Electricians  62% 
11.    Roofers  57% 
12.    Plumbers  54%

Around one in three (29%) tradespeople are investing in marketing and advertising this year to pull in more business from the work that’s available. They’re also looking to expand their businesses to offer more services, improve their website/ social channels, potentially reduce prices where they can and expand into different locations. 

Top 10 ways tradespeople are attracting more business in 2023 
1.      Investing in marketing and advertising  29% 
2.      Expanding to offer more services 25% 
3.      Improve website/ social channels  25% 
4.      Consider reducing prices to pull in more work  24% 
5.      Expanding into different locations  24% 
6.      Investing in tools/ vehicles 16% 
7.       Form partnerships to facilitate more jobs  14% 
8.      Increase wages to fill jobs  13% 
9.      Hire more workers  10% 
10.    Hire support for admin/ business operations  8% 

Tags: industry, news, adrienne minster, kitchens, bathrooms

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