2021 edition Are householders moving on or sprucing up? - Barbour ABI

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2021 edition Are householders moving on or sprucing up? - Barbour ABI
2021 edition
                                                                                                   Contents
                                                                                                   • Home
                                                                                                   • About us
                                                                                                   • Introduction
                                                                                                   • Types of improvement
                                                                                                   • Who is spending?
                                                                                                   • Regional overview
                                                                                                   • North East
                                                                                                   • North West
                                                                                                   • Yorkshire & Humber

2021 edition
                                                                                                   • East Midlands
                                                                                                   • West Midlands
                                                                                                   • East of England
                                                                                                   • London
                                                                                                   • South East

Are householders
                                                                                                   • South West
                                                                                                   • Wales
                                                                                                   • Scotland
                                                                                                   • Drivers of home improvement
                                                                                                   • Methodology

moving on or sprucing up?
A look at the trends in planning activity for households across the country
                                                                                                   Barbour ABI, Hinderton Point,
                                                                                                   Lloyd Drive, Cheshire Oaks,
                                                                                                   Cheshire, CH65 9HQ

                                                                              Brought to you by…
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                                                                                                   info@barbour-abi.com
                                                                                                   www.barbour-abi.com
                                                                                                       @BarbourABI

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2021 edition Are householders moving on or sprucing up? - Barbour ABI
The Home Improvement Report 2021 Edition

About us
Construction intelligence from the market leader with the largest UK-based research team, keeps you
better connected.
Barbour ABI                                                                 AMA Research                                                                                                                                                 2021 edition
Barbour ABI delivers market-leading intelligence, insight and analysis,     AMA Research, a Barbour ABI group company is the leading specialist
enabling customers to identify new business opportunities, monitor          provider of targeted market research and industry insight to the UK                                                                                     Contents
clients and competitor relationships and make smarter, more timely          building and construction industry. Publishing over 150 off-the-shelf
decisions.                                                                  market reports and industry forecast bulletins, the team specialise                                      Brian Green                                    • Home
Founded over 80 years ago, Barbour ABI has the largest UK-based             in gathering deep intelligence in sectors where data doesn’t already               Brian Green studied civil engineering followed by industrial-        • About us
team of construction research experts, who make over 1 million              exist. These high-quality reports are utilised by many leading UK                  related social sciences before entering journalism, mostly working   • Introduction
calls every single year to key decision makers involved in projects to      companies as an essential tool in developing their own marketing and               at Construction News. He left in 1998 to broaden his experience      • Types of improvement
unearth the details that give our customers the competitive edge. The       strategic growth policies.                                                         as a consultant, researcher, and commentator.                        • Who is spending?
power and depth of Barbour ABI information is unrivalled as we speak        AMA Research also offer bespoke research services that combine                     He has written or contributed to many reports for construction       • Regional overview
to more key decision makers, make more connections and add more             their boutique consultancy touch with the scale, depth and accuracy                bodies such as CIOB, CIC, NHBC, and CPA and worked for other         • North East
value to project information than any other company in the UK.              of Barbour ABI data to provide the most in-depth and reliable                      organisations such as Arcadis, Arup, BRE, RLB, and Turner &          • North West
Our information is trusted by the UK’s governing bodies and leading         services in the construction industry. This broad range of services                Townsend. He annually edits the HBF/NHBC Housing Market              • Yorkshire & Humber
organisations. The Office for National Statistics has used our data         including commissioned market research projects as well as                         Intelligence report and Barbour ABI’s Home Improvers report and      • East Midlands
for over six years to supply the New Orders Estimates. We are also          consumer and business surveys.                                                     writes monthly for RIBA Journal.                                     • West Midlands
partner of the Infrastructure and Projects Authority, responsible for                                                                                          He sits on the BEIS construction statistics committee and ONS        • East of England
collecting, collating and publishing the future construction pipeline for                                                                                      construction statistics steering group.                              • London
HM government.                                                                                                                                                                                                                      • South East
                                                                                                                                                                                                                                    • South West
Barbour Product Search                                                                                                                                                                                                              • Wales
Barbour Product Search is a digital product directory, and provides                                                                                                                                                                 • Scotland
construction product manufacturers with the opportunity to                                                                                                                                                                          • Drivers of home improvement
promote their products through a content delivery service. As well                                                                                                                                                                  • Methodology
as an established following of industry professionals, as part of the
Barbour ABI group companies, Barbour Product Search also has
access to an engaged database of decision makers at specification
and procurement stages including architects, clients, contractors
and installers. It’s a unique way to reach a relevant audience
                                                                              Partner of the Infrastructure and Projects Authority in providing the National
through insightful product news, case studies and newsletters.
                                                                              Infrastructure and Construction Pipeline
Barbour Product Search also provides a CPD platform for product
manufacturers to share the latest commentary on how their products
                                                                                                                                                                                                                                    Barbour ABI, Hinderton Point,
have solved real problems the industry faces today. All of this in turn
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provides professionals within construction with a platform to learn                                                                                                                                                                 Cheshire, CH65 9HQ
                                                                              Chosen provider of Construction
about construction products, current hot topics within construction           New Orders estimates to the ONS
and develop their knowledge to make informed decisions.
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  Find out more                          Barbour ABI              Barbour Product Search                    AMA Research                     Informa

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2021 edition Are householders moving on or sprucing up? - Barbour ABI
The Home Improvement Report 2021 Edition

How was 2020 for home improvement?
If you had asked almost anyone connected with the home improvement market at the end of 2019 what they expected in 2020 their predictions would have
been wildly wrong. 2020 was a very strange and very unpredictable year.
A tale of the unexpected                                                                Then reports of a pandemic emerged. Lockdown was declared and
                                                                                        everyone forced to spend more time than they might like at home.
                                                                                                                                                                                                                       of applications for home improvement bounced back faster and
                                                                                                                                                                                                                       stronger than almost anyone would have expected. Applications in
                                                                                                                                                                                                                                                                                                             2021 edition
If you had asked almost anyone connected with the home
improvement market at the end of 2019 what they expected in 2020                        That changed everything. Many people, particularly younger adults                                                              the second half of 2020 were more than 20% higher than over the
                                                                                        and families living in flats or smaller houses, were put under immense                                                         same period in 2019.                                                             Contents
their predictions would have been wildly wrong. If they weren’t wrong,
either there is something very odd about how they predict the future,                   stress. They needed more room. The extraordinary weather that                                                                  Chart 1.2 shows the effect graphically. Importantly for the                      • Home
or their forecasts were right for the wrong reasons. 2020 was a very                    coincided with the early days of lockdown also reconnected people                                                              construction sector, planning applications run ahead of activity on the          • About us
strange and very unpredictable year.                                                    with their gardens.                                                                                                            ground, so we can expect to see the swelling numbers of applications             • Introduction
Home improvement activity is always erratic through the year, if only                   Experiences inevitably were varied. But there was one common                                                                   feed through into raised activity on the ground as 2021 progresses.              • Types of improvement
for seasonal reasons. However, looking through this volatility, most                    factor. The quality of home mattered more. As time went on, this                                                               The chart also illustrates the strong, and perhaps unsurprising,                 • Who is spending?
of the signs in 2019 were pointing to a weakening market if we take                                                                                                                                                    correlation between home improvement planning applications                       • Regional overview
Britain as a whole. This can be seen in the Barbour ABI data for home                     Applications in the second half of 2020 were more than                                                                       and activity in the construction industry’s private housing repair,              • North East
                                                                                                                                                                                                                       maintenance, and improvement sector.
improvement applications (Chart 1.1), which illustrates the erratic                     20% higher than over the same period in 2019.                                                                                                                                                                   • North West
nature. The 12-month moving average shows the trend and how the                                                                                                                                                                                                                                         • Yorkshire & Humber
                                                                                                                                                                                                                       The North stars
number of applications were starting to fade from the spring of 2017.                                                                                                                                                                                                                                   • East Midlands
                                                                                        seemed to have sparked a race for space among homeowners and a                                                                 The overall effect across 2020 was that there was a rise in the primary
True, things may have looked relatively brighter for those in the north                                                                                                                                                                                                                                 • West Midlands
                                                                                        rush to improve gardens up and down the country.                                                                               measure of home improvement applications per 1,000 private homes
of England, Wales, and Scotland, but the big spenders in the south of                                                                                                                                                                                                                                   • East of England
                                                                                        Builders’ merchants and DIY stores saw a huge jump in customer                                                                 in Great Britain of about 3%. This as we see in Chart 1.3 where the
England, particularly in central London, appeared to be showing less                                                                                                                                                                                                                                    • London
                                                                                        traffic as households rushed to lay patios, construct decking, and                                                             measure rises from 12.0 in 2019 to 12.4 in 2020. In Table 4.1, later,
appetite for home improvement and were definitely spending less.                                                                                                                                                                                                                                        • South East
                                                                                        improve their fencing. And, after an initial fall, the submissions                                                             we see how this lifted the level to the average over the previous two
                                                                                                                                                                                                                                                                                                        • South West
                                                                                                                                                                                                                                                                                                        • Wales
                                                                                                                                                                                                                                                                                                        • Scotland
  35,000                                                                                                                                                                                          105                                                                                                   • Drivers of home improvement

                                                                                                                                   Index: private housing rmi 2018=100, applications 2017 = 100
                                                                                                                                                                                                                                                                                                        • Methodology
  30,000
                                                                                                                                                                                                  100

  25,000
                                                                                                                                                                                                   95

  20,000

                                                                                                                                                                                                   90

  15,000

                                                                                                                                                                                                   85
  10,000                                                                                                                                                                                                                                                                                                Barbour ABI, Hinderton Point,
                                                                                                                                                                                                                                                                                                        Lloyd Drive, Cheshire Oaks,
                                                                                                                                                                                                                                                                                Private housing RMI
   5,000
                                                                                                                                                                                                   80                                                                                                   Cheshire, CH65 9HQ
                                                                                                                                                                                                                                                                                Applications
                                                                                                   Home improvers       Trend

      0
       Dec 08   Dec 09   Dec 10   Dec 11   Dec 12   Dec 13   Dec 14   Dec 15   Dec 16     Dec 17    Dec 18     Dec 19     Dec 20
                                                                                                                                                                                                   75
                                                                                                                                                                                                     Dec 14   Dec 15    Dec 16         Dec 17          Dec 18          Dec 19                  Dec 20
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  Chart 1.1                                                                                              Source: Barbour ABI                   Chart 1.2                                                                                                              Source: Barbour ABI, ONS          www.barbour-abi.com
                                                                                                                                                                                                                                                                                                            @BarbourABI
  Monthly home improvement planning applications (with 12-month moving average)                                                                Private housing RMI construction output and home improvement planning applications (12-month moving average)

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2021 edition Are householders moving on or sprucing up? - Barbour ABI
The Home Improvement Report 2021 Edition

years, as activity checked a steady decline since the ratio peaked at              the report, which looks at the top 10 area classifications ranked by
13.7 in 2016.                                                                      change in the number of applications.
More interesting for many is the variation in the growth rates across              Based on ONS area classifications, the areas denoted “Challenged
Britain in a year that was massively disrupted by the pandemic                     Terraced Workers” came top. These areas are account for a relatively
and lockdowns. While London still sees the highest level of home
improvement applications for each 1,000 private homes, activity in                    Yorkshire & Humber and the North West both saw a                                                                                                      2021 edition
the capital in 2020 continued a decline from the peak in 2016. In all              double-digit growth in the number of planning applications
other English regions and in Scotland and Wales activity increased.                submitted in 2020.                                                                                                                                  Contents
The flip side to London was the large rise in activity in the north of
England. Yorkshire & Humber and the North West both saw a double-                                                                                                                                                                      • Home
digit growth in the number of planning applications submitted in                   small part of the population, less than 3% of those in employment.                                                                                  • About us
2020. This more than checked the signs of decline seen across most                 They also see relatively low levels of home improvement activity. This                                                                              • Introduction
of Britain in 2019. Part of this growth outside London will be down                may flatter the scale of the rise, but it is a further indication of the                                                                            • Types of improvement
to stronger house price growth. But the pandemic clearly prompted                  unexpected effects of the pandemic.                                                                                                                 • Who is spending?
many households to invest in their homes.                                          The rise in rural activity is also revealed in the table, along with a strong                                                                       • Regional overview

The pattern of growth between different households and areas were                  showing in the suburban areas of Britain. For most people this would                                                                                • North East

mixed. In the North West, for instance which saw the biggest regional              have been expected given the nature of the pandemic. What would also                                                                                • North West
rise, towns with industrial heritage such as Oldham and St Helens                  have been expected given the dominance of London, was the slide in                                                                                  • Yorkshire & Humber
enjoyed big boosts along with more rural districts such as Ribble                  activity in more metropolitan and cosmopolitan areas of Britain.                                                                                    • East Midlands
Valley and Copeland.                                                               Chart 1.4 underlines the dramatic shift in the fortunes of home                                                                                     • West Midlands
                                                                                   improvement in London. The data shows annual average household                                                                                      • East of England
As we dig deeper into the data, growth can be seen in both rural
                                                                                   spending on “alterations and improvements to dwelling” over two                                                                                     • London
areas and in traditional industrial towns noted for their working-class
terraced housing. This patchwork is evident in Table 3.2, later in                 consecutive Family Spending surveys, to reduce the volatility in the                                                                                • South East
                                                                                                                                                                                                                                       • South West
                                                                                                                                                                                                                                       • Wales
                                                                                                                                                                                                                                       • Scotland
           London                                                                                                                  South East                                                                                          • Drivers of home improvement
                                                                                                          -3%
        South East                                                                                                             East of England                                                                                         • Methodology
                                                                                        1%
   East of England                                                                                                                South West
                                                                                   5%
       South West                                                                                                                     England
                                                                  3%
   Yorks & Humber                                                                                                              West Midlands
                                                           10%
     East Midlands
                                                             7%                      Percentage changes                         East Midlands

    West Midlands                                                                       are between                                  Scotland
                                                           4%
       North West
                                                     11%
                                                                                        2019 & 2020                                     Wales

            Wales                                                                                                                 North West
                                                4%
        North East
                                           7%
                                                                                                                                      London                                                                                           Barbour ABI, Hinderton Point,
         Scotland
                                                                                                                2020
                                                                                                                                   North East                                                                                          Lloyd Drive, Cheshire Oaks,
                                      4%
                                                                                                                                                                                                                        2019-2020
   England average                                                                                              2019          Yorks & Humber                                                                                           Cheshire, CH65 9HQ
                                                                         3%                                                                                                                                             2017-2018
                                                                                                                2018
       GB average                                                                                                                Great Britain

                     0          5                     10
                                                                    3%

                                                                              15               20                      25                        0           500             1,000        1,500           2,000                2,500
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  Chart 1.3                                           Source: Barbour ABI, ONS, MHCLG, StatsWales, Scottish Government        Chart 1.4                                                           Source: ONS Family Spending survey   www.barbour-abi.com
                                                                                                                                                                                                                                           @BarbourABI
  Home improvement applications per 1,000 private homes by region                                                             Household annual spend (£) on home improvements by region

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2021 edition Are householders moving on or sprucing up? - Barbour ABI
The Home Improvement Report 2021 Edition

figures. The data is up to March in the year, so mainly pre-dates                                                         places that provide more space for storage or that might double as a
the pandemic.                                                                                                             home office, workspace, or home gym, it makes sense. Also, many of
It shows that in the financial years ending March 2019 and 2020, the
                                                                                                                             Five years ago the average London household spent twice
average level of household spending among Londoners fell by half
compared with the average across the previous two years. Looking at
older data shows how five years ago the average London household
                                                                                                                          the amount on home improvement than the national average.
                                                                                                                          Now they appear to be spending half the national average.                      2021 edition
spent twice the amount on home improvement than the national
average. Now they appear to be spending half the national average.                                                                                                                                  Contents
                                                                                                                          the applications will have been to convert garages to bring them into
Outside the norm                                                                                                          the scope of living space.                                                • Home
A popular narrative argues that the pandemic and lockdown have                                                            The upshot is that lockdown appears to have raised the appreciation       • About us
affected how people live and invigorated the desire for better homes.                                                     among households not just for more space in the home, but for more        • Introduction
This view has hardened as the prospect has grown that more people                                                         useful and enjoyable outside space within the boundaries of the home.     • Types of improvement
will in future work from home.                                                                                            As Chart 1.5 shows, applications for both garages and garden works        • Who is spending?
Certainly, there was a solid rise in applications for extensions, which                                                   had been on a steady decline through 2019. But the downward trend         • Regional overview
form the backbone of home improvement applications. This can be                                                           was reverse and by the end of 2020 there was a steep upward trend.        • North East
seen in Tables 2.1 and 2.2 later. But one quirk, which might have been                                                    It is worth noting that applications for solar panels, which tend to be   • North West
expected if we thought about it, was the huge jump in applications for                                                    erratic, also surged in the latter months of 2020. This too fits with a   • Yorkshire & Humber
garden buildings and works. And along with this came applications for                                                     popular narrative that suggests the pandemic has made people more         • East Midlands
work on garages.                                                                                                          conscious of environmental issues, and perhaps more inclined to be        • West Midlands

The rise in applications concerning garages may initially flummox                                                         self-sufficient. These might be factors in the surge in applications to   • East of England
people who might think it odd given that car sales fell, and people                                                       install solar panels, which offers not just environmental benefits but    • London
have been driving less. But if we include garages within the scope of                                                     the ability to capture off-grid energy.                                   • South East
                                                                                                                                                                                                    • South West
                                                                                                                                                                                                    • Wales
                                                                                                                                                                    Lockdown appears to             • Scotland
                                                     50
                                                                    Garden buildings & works
                                                                                                                                                                have raised the appreciation        • Drivers of home improvement
                                                                    Garage                                                                                      among households not just           • Methodology
                                                     40
                                                                    Solar panels
                                                                                                                                                                for more space in the home,
  Change (%) on 12-month ave level of applications

                                                     30                                                                                                         but for more useful and
                                                     20
                                                                                                                                                                enjoyable outside space
                                                                                                                                                                within the boundaries of
                                                     10
                                                                                                                                                                the home.
                                                      0

                                                                                                                                                                                                    Barbour ABI, Hinderton Point,
                                                     -10
                                                                                                                                                                                                    Lloyd Drive, Cheshire Oaks,
                                                                                                                                                                                                    Cheshire, CH65 9HQ
                                                     -20

                                                     -30
                                                           Dec 16   Jun 17           Dec 17    Jun 18   Dec 18   Jun 19     Dec 19      Jun 20       Dec 20
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       Chart 1.5                                                                                                                        Source: Barbour ABI                                         www.barbour-abi.com
                                                                                                                                                                                                        @BarbourABI
       Outside-the-house home improvement

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2021 edition Are householders moving on or sprucing up? - Barbour ABI
The Home Improvement Report 2021 Edition

Ups and downs among the boroughs                                             Rank     District                                      Region        2017   2018   2019   2020            Growth (%)*
However big the shift was in appetite for home improvement, it only
                                                                              ★       Three Rivers                              East of England   38.5   32.9   31.6   34.9                 8
mildly dented the hierarchy of where applications are most likely to
be found.                                                                     2       St Albans                                 East of England   41.9   37.2   35.8   34.3                -6

The dominant forces of house prices and house price rises, along
with popular and aspirational places to live, have kept London’s outer
                                                                              3

                                                                              4
                                                                                      Brentwood

                                                                                      Elmbridge
                                                                                                                                East of England

                                                                                                                                  South East
                                                                                                                                                  36.1

                                                                                                                                                  38.1
                                                                                                                                                         35.2

                                                                                                                                                         34.7
                                                                                                                                                                29.4

                                                                                                                                                                31.0
                                                                                                                                                                       32.9

                                                                                                                                                                       30.2
                                                                                                                                                                                            2

                                                                                                                                                                                           -8
                                                                                                                                                                                                              2021 edition
suburbs at the top of the table based on how many applications they
                                                                              5       Harrow                                       London         43.1   40.9   38.4   29.8                -25
see relative to the private housing stock.                                                                                                                                                               Contents
Three Rivers and St Albans sit proudly at the top of the Top 25 local         6       Hertsmere                                 East of England   33.4   33.6   26.2   29.3                -2
                                                                                                                                                                                                         • Home
authorities. They brush up against Hertsmere and Harrow, to the               7       Hillingdon                                   London         33.2   30.5   27.0   29.2                 2
                                                                                                                                                                                                         • About us
north west of London, which sit within the top six. And looking around
                                                                              8       Redbridge                                    London         41.4   38.5   33.5   29.0                -20           • Introduction
the rest of those that occupy the top 25 spots most are within easy
commuting distance of central London.                                         9       Hounslow                                     London         32.0   27.8   27.5   28.7                 4            • Types of improvement
                                                                                                                                                                                                         • Who is spending?
What we notice Table 1.1, however, is that those in London, such              10      Mole Valley                                 South East      31.1   28.2   26.2   28.3                 4
                                                                                                                                                                                                         • Regional overview
as Harrow, Redbridge, Richmond upon Thames, Barnet, and Brent,                11      Epping Forest                             East of England   30.7   30.1   26.8   28.3                -1            • North East
have seen the bigger falls. All saw double-digit drops in the ratio of
                                                                              12      Welwyn Hatfield                           East of England   31.5   30.9   25.7   27.9                -1            • North West
applications per 1,000 private homes in 2020 compared with the
                                                                                                                                                                                                         • Yorkshire & Humber
previous two years.                                                           13      Richmond upon Thames                         London         35.6   32.7   28.9   27.8                -10
                                                                                                                                                                                                         • East Midlands
When we look at the Table 1.2, showing the bottom 25 districts for            14      Tandridge                                   South East      31.2   26.6   24.9   27.5                 7            • West Midlands
home improvement, the picture is very different. Those seeing the
                                                                              15      Windsor and Maidenhead                      South East      30.2   29.2   26.9   27.5                -2            • East of England
biggest lift in applications, above 15%, were North East Lincolnshire,
                                                                                                                                                                                                         • London
Hyndburn, West Dunbartonshire, Blaenau Gwent, and Inverclyde. All             16      Waverley                                    South East      31.0   27.6   28.4   27.3                -3
                                                                                                                                                                                                         • South East
have large rural areas.                                                       17      Uttlesford                                East of England   32.8   28.5   25.8   27.1                 0            • South West
This appears to be a story of urban down and rural up. But as we              18      Guildford                                   South East      30.7   30.3   26.8   26.3                -8            • Wales
see later in Chart 4.2, it is not that straightforward. Boroughs in the                                                                                                                                  • Scotland
major conurbations outside London – Manchester, Birmingham, Leeds             19      Hart                                        South East      30.4   26.5   25.5   26.0                 0
                                                                                                                                                                                                         • Drivers of home improvement
and Bradford, Newcastle – have seen expansion. While also planning            20      Sevenoaks                                   South East      29.5   26.6   24.4   25.8                 1            • Methodology
applications in smaller villages in sparse areas also seem to get a
                                                                              21      Barnet                                       London         37.4   33.4   27.1   25.6                -15
boost in 2020.
                                                                              22      Kingston upon Thames                         London         32.2   30.3   24.0   25.0                -8
Less movement more improvement                                                23      Epsom and Ewell                             South East      27.4   26.0   24.7   24.8                -2
Much has been made over recent years of whether the balance of
                                                                              24      Buckinghamshire                             South East      28.3   26.6   24.0   24.7                -2
moving versus improving has changed. The economics certainly tend
to favour improving as house prices rise faster than general inflation,       25      Brent                                        London         35.5   31.0   28.3   24.2                -18

with the cost of trading up widening faster than the cost of converting
a loft or adding an extension. That’s without factoring any changes in    Table 1.1                                                                                           Source: Barbour ABI, ONS   Barbour ABI, Hinderton Point,
transaction costs.                                                        Top 25 districts for home improvement                                                                                          Lloyd Drive, Cheshire Oaks,
                                                                          Number of home improvement applications for every 1,000 private homes                                                          Cheshire, CH65 9HQ
Certainly, since the global financial crisis residential transactions
                                                                          *latest year versus average over previous two years
have been a step change between 2007 and 2008, almost halving
before bouncing back slightly to settle at a level around 25% to 30%
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down on the pre-crisis level. As Chart 6.8 shows, later, this shifted                                                                                                                                    info@barbour-abi.com
the relationship between home sales and private housing RMI                                                                                                                                              www.barbour-abi.com
construction activity, which held far more stable.                                                                                                                                                           @BarbourABI

                                                                                                                                                                                                                                         6
2021 edition Are householders moving on or sprucing up? - Barbour ABI
The Home Improvement Report 2021 Edition

   Rank     District                                        Region         2017   2018   2019   2020            Growth (%)*       In many ways the cost of buying a home with an extra bedroom is no
                                                                                                                                  bad rough guide to whether people are likely to move or improve. As
    ★       Ceredigion                                      Wales          6.2    5.5    5.4    5.6                  2
                                                                                                                                  Table 4.4, later, clearly shows in the data provided by Zoopla that
    2       Hartlepool                                    North East       7.0    5.9    5.5    5.5                 -3            the cost of trading up from a three to a four-bed home can be very
    3

    4
            Lincoln

            Hyndburn
                                                        East Midlands

                                                         North West
                                                                           5.6

                                                                           5.2
                                                                                  5.6

                                                                                  4.5
                                                                                         6.0

                                                                                         4.5
                                                                                                5.5

                                                                                                5.4
                                                                                                                    -5

                                                                                                                    20
                                                                                                                                  substantial and well above the cost of having an extension built.
                                                                                                                                  The pandemic changed the dynamic. Sales fell heavily when lockdown               2021 edition
                                                                                                                                  was imposed. And, while the stamp duty holiday provided a big boost
    5       Bolsover                                    East Midlands      5.4    5.6    5.5    5.4                 -2            in the final quarter, the numbers for the 12-months to September 2020       Contents
    6       Na h-Eileanan Siar                             Scotland        4.2    4.9    5.2    5.4                  7            – which we use for comparison (see methodology) – were significantly
                                                                                                                                  down on the same period a year earlier. The net effect of a year of the     • Home
    7       Wrexham                                         Wales          5.2    5.7    5.5    5.4                 -4
                                                                                                                                  pandemic and lockdowns was to see the balance between move and              • About us
    8       North East Lincolnshire                   Yorkshire & Humber   4.8    4.0    4.4    5.2                 22            improve shift heavily towards improve. That is, if we take submission       • Introduction
    9       Burnley                                      North West        5.6    5.5    4.9    5.0                 -5            of a planning applications as a measure for improvements.                   • Types of improvement
                                                                                                                                  The scale of the shift towards more applications to improve for every       • Who is spending?
    10      Portsmouth                                    South East       6.6    7.0    6.7    5.0                 -27
                                                                                                                                  100 home sales is clear from the data presented in Table 4.3, which         • Regional overview
    11      North Lanarkshire                              Scotland        4.7    4.5    4.3    4.9                 10            shows that in 2020 the number of improvement planning applications          • North East
    12      Falkirk                                        Scotland        5.5    4.5    5.0    4.8                  1            to home moves was 25% higher than the average over the past five            • North West
                                                                                                                                  years. However, the likelihood is that the balance will shift back as the   • Yorkshire & Humber
    13      Kingston upon Hull                        Yorkshire & Humber   4.3    4.4    4.3    4.8                 10
                                                                                                                                  volatility in the figures begins to settle. Where the relationship might    • East Midlands
    14      Renfrewshire                                   Scotland        4.9    4.7    4.4    4.6                  1            settle however is unclear.                                                  • West Midlands
    15      Tower Hamlets                                  London          7.7    5.8    5.0    4.5                 -18                                                                                       • East of England
                                                                                                                                     The net effect of a year of the pandemic and lockdowns                   • London
    16      West Dunbartonshire                            Scotland        4.5    3.7    3.7    4.5                 19
                                                                                                                                  was to see the balance between move and improve shift                       • South East
    17      East Ayrshire                                  Scotland        5.1    4.5    4.8    4.4                 -5                                                                                        • South West
                                                                                                                                  heavily towards improve.
    18      Stoke-on-Trent                              West Midlands      4.1    4.6    4.6    4.2                 -9                                                                                        • Wales
                                                                                                                                                                                                              • Scotland
    19      North Ayrshire                                 Scotland        4.3    4.9    4.4    4.2                 -11
                                                                                                                                                                                                              • Drivers of home improvement
    20      Dundee City                                    Scotland        3.9    4.0    3.7    3.9                  1                                                                                        • Methodology
    21      Blaenau Gwent                                   Wales          3.0    3.2    3.3    3.8                 17

    22      Inverclyde                                     Scotland        3.8    3.2    3.3    3.7                 15

    23      Aberdeen City                                  Scotland        4.2    4.7    4.2    3.4                 -23

    24      Blackpool                                    North West        2.9    3.2    2.5    3.1                  9

    25      Glasgow City                                   Scotland        3.0    2.7    2.6    2.8                  4

Table 1.2                                                                                              Source: Barbour ABI, ONS                                                                               Barbour ABI, Hinderton Point,
Bottom 25 districts for home improvement                                                                                                                                                                      Lloyd Drive, Cheshire Oaks,
Number of home improvement applications for every 1,000 private homes                                                                                                                                         Cheshire, CH65 9HQ
*latest year versus average over previous two years
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                                                                                                                                                                                                                                              7
2021 edition Are householders moving on or sprucing up? - Barbour ABI
The Home Improvement Report 2021 Edition

From plans to action                                                                 there are clear signs of a relationship. Shift the line forward a year, as
If we look at 10 years of data, the strongest six-month period for                   in Chart 1.7, and the connection seems very strong indeed.
applications as collected by Barbour ABI tends to be from February                   The relationship is unlikely to be perfect because an application is
to July. The strongest six-month period for private housing repair,                  for a project, not an amount of work. The link weakens when there
maintenance, and improvement output as measured by ONS runs
from June to November.
                                                                                     are changes in the average value. Bearing that in mind, the stronger
                                                                                     showing of construction work in the period before 2015 makes sense.                                                                                                                                                               2021 edition
This seems to suggest a lag of about four months in the peaks. This                  This period was dominated by London and saw the surge in “iceberg
can be seen in Chart 1.6. Clearly things shifted weirdly with the                    homes” where numerous huge and expensive basements were being                                                                                                                                                                Contents
pandemic. But the notion that there is a four-month lag between                      built in Kensington & Chelsea and Westminster. You would expect
                                                                                     the aggregate value of construction work to rise above the aggregate                                                                                                                                                         • Home
                                                                                     number of applications.                                                                                                                                                                                                      • About us
    Changes in applications appear, in more normal
                                                                                     Clearly, the applications data well before the pandemic was pointing                                                                                                                                                         • Introduction
circumstances, to translate into changes in private housing                                                                                                                                                                                                                                                       • Types of improvement
                                                                                     towards weaker home improvement activity and the ONS data
RMI about a year later.                                                              suggests that private housing RMI construction was weak at the start                                                                                                                                                         • Who is spending?
                                                                                     of 2020. What happened after that was chaotic and broke any normal                                                                                                                                                           • Regional overview
                                                                                     links that might tie the level of applications to the level of construction                                                                                                                                                  • North East
putting in an application and getting work done seems reasonable                     activity in the private housing RMI sector.                                                                                                                                                                                  • North West
given it takes on average about a couple of months to gain approval.                 There is however enough here to suggest that the applications provide                                                                                                                                                        • Yorkshire & Humber
However, the relationship is obviously not going to be that simple,                  a good indicator of future private housing RMI construction activity.                                                                                                                                                        • East Midlands
as the time taken for work to be done, from planning approval to                     Changes in applications appear, in more normal circumstances, to                                                                                                                                                             • West Midlands
completion, will vary widely.                                                        translate into changes in private housing RMI about a year later. So,                                                                                                                                                        • East of England

If we look at the path of private housing RMI and that of planning                   with plans being submitted in larger numbers, we might reasonably                                                                                                                                                            • London

applications on a 12-month moving basis, as we can in Chart 1.1,                                                                                                                                                                                                                                                  • South East
                                                                                                                                                                                                                                                                                                                  • South West
                                                                                                                                                                                                                                                                                                                  • Wales
                                                                                                                                                                                                                                                                                                                  • Scotland
   120                                                                                                                                                                                          110                                                                                                               • Drivers of home improvement

                                                                                                                                 Index: private housing rmi 2018=100, applications 2017 = 100
                                                                                                                                                                                                                                                                                                                  • Methodology
   110
                                                                                                                                                                                                100

   100

                                                                                                                                                                                                 90
    90

    80
                                                                                                                                                                                                 80

    70                                                                                                                                                                                                                                                                                                            Barbour ABI, Hinderton Point,
                                                                                                                                                                                                 70
                                                                                                                                                                                                                                                                                                                  Lloyd Drive, Cheshire Oaks,
    60                                                                                           Applications (Barbour ABI)                                                                                                                                                Private housing RMI                    Cheshire, CH65 9HQ
                                                                                                 Private housing RMI (ONS)                                                                                                                                                 Applications (12-months advanced)

    50
      Dec 10    Dec 11     Dec 12    Dec 13     Dec 14     Dec 15     Dec 16     Dec 17     Dec 18       Dec 19         Dec 20
                                                                                                                                                                                                 60
                                                                                                                                                                                                   Dec 11   Dec 12   Dec 13   Dec 14   Dec 15   Dec 16   Dec 17   Dec 18    Dec 19         Dec 20        Dec 21
                                                                                                                                                                                                                                                                                                                  0151 353 3500
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  Chart 1.6                                                                                     Source: Barbour ABI, ONS                     Chart 1.7                                                                                                                          Source: Barbour ABI, ONS          www.barbour-abi.com
                                                                                                                                                                                                                                                                                                                      @BarbourABI
  Applications four months ahead of private housing RMI (both smoothed on six-month average and indexed to 2018=100)                         Private housing RMI construction output and home improvement applications (12-month moving averages)

                                                                                                                                                                                                                                                                                                                                                  8
2021 edition Are householders moving on or sprucing up? - Barbour ABI
The Home Improvement Report 2021 Edition

expect to see a rise in action on the ground about a year later. That is,    The Bank of England estimated that from March to November 2020           But checking this optimism is the reality that we have yet to fully feel
once things have settled down.                                               additional deposits over those nine months suggests that households      the effects of the damage inflicted on the economy as we have dealt
                                                                             had accumulate £125 billion of extra savings, having not been able       with the pandemic. Policies have sensibly been put in place to provide
Looking ahead                                                                to spend freely on things like holidays and entertainment over the       some shelter from the storm. But many households that have already
What follows from a very strange year like 2020? What permanent
change has the pandemic caused? What does normal look like when
                                                                             pandemic. That figure is thought to have risen above £160 billion.
                                                                             Meanwhile, spending on cars has plunged, with new registrations
                                                                                                                                                      suffered badly, and many more will face tough times as the nation
                                                                                                                                                      emerges into what will become a new normal.                                     2021 edition
we return to whatever it is?                                                 down 7% in 2019, 11% in 2020, and for the first two months of 2021       It seems inevitable that we will not be returning to business as usual.
These are just three of the multitude of questions that will have been       down by more than a third on the same period a year ago. This points     Fortunately for those involved in home improvement activities,             Contents
spinning around virtual boardroom tables for months as firms look to         to large amounts of money not being spent on motor vehicles, which       the few flickering signals we can see through the fog and haze as
“get back to normal”.                                                        theoretically frees it up for something else.                            we look ahead hint that there is every reason to be more positive          • Home
                                                                             Add this together and there is a case to suggest that households,        than negative.                                                             • About us
All the signs are that many if not most of those currently working from
home will return to offices. But in future there will be more flexibility,   many at least, have large amounts that they could, should they wish,                                                                                • Introduction
                                                                             spend on doing up their homes. And if they will be working from                                                                                     • Types of improvement
   The home improvement applications data suggest that in                    home, that might look like a good investment.                                                                                                       • Who is spending?
the near term at least there will be a rising amount of work                 Certainly, the home improvement applications data suggest that in                                                                                   • Regional overview

flowing through.                                                             the near term at least there will be a rising amount of work flowing                                                                                • North East

                                                                             through. How much of a rise we might see in home improvement                                                                                        • North West
                                                                             spending, however, will depend on the ambitions of the homeowners                                                                                   • Yorkshire & Humber
with much more working from home. That, at least, seems to be the            and the size of their projects.                                                                                                                     • East Midlands
consensus view and has become almost an accepted fact by most                                                                                                                                                                    • West Midlands
                                                                             To this positive factor we might add the focus on home improvements
people. This fundamentally changes the value of a home in the minds                                                                                                                                                              • East of England
                                                                             emerging from the green agenda. Despite the wretched failures of
of households.                                                                                                                                                                                                                   • London
                                                                             government policies over the years, there is much to suggest this will
                                                                                                                                                                                                                                 • South East
                                                                             boost home improvement.
                                                                                                                                                                                                                                 • South West
                                                                                                                                                                                                                                 • Wales
                                                                                                                                                                                                The Bank of England              • Scotland
                                                                                                                                                                                            estimated that from                  • Drivers of home improvement
                                                                                                                                                                                            March to November 2020               • Methodology
                                                                                                                                                                                            additional deposits over
                                                                                                                                                                                            those nine months suggests
                                                                                                                                                                                            that households had
                                                                                                                                                                                            accumulate £125 billion of
                                                                                                                                                                                            extra savings, having not
                                                                                                                                                                                            been able to spend freely
                                                                                                                                                                                            on things like holidays and          Barbour ABI, Hinderton Point,
                                                                                                                                                                                            entertainment over the               Lloyd Drive, Cheshire Oaks,
                                                                                                                                                                                            pandemic.                            Cheshire, CH65 9HQ

                                                                                                                                                                                                                                 0151 353 3500
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                                                                                                                                                                                                                                 www.barbour-abi.com
                                                                                                                                                                                                                                     @BarbourABI

                                                                                                                                                                                                                                                                 9
2021 edition Are householders moving on or sprucing up? - Barbour ABI
The Home Improvement Report 2021 Edition

What type of work is on the up, what’s down?
Differences in house prices, population density, available outside space all greatly influence what types of home
improvements are undertaken and where.
Among the bigger and least expected changes seen in the home
improvement planning figures between 2019 and 2020 must be the
                                                                                of converting a garage to expand the home comes strongly into play.
                                                                                This is likely to be a popular option for people with garages looking to
                                                                                                                                                                  Differences in house prices, population density, available outside
                                                                                                                                                                  space all greatly influence what types of home improvements are
                                                                                                                                                                                                                                                    2021 edition
surge in applications for garages (see Table 2.1).                              better use space.                                                                 undertaken and where. And the driving forces shift over time. So, as
With car sales falling and people driving less during the pandemic it           Perhaps less surprising in the data was the rise in applications                  we examine the trends either geographically or by household type,            Contents
would seem reasonable that the desire for garages might fall. Firstly,          for extensions, which represent the mother lode within home                       multiple factors need to be considered. This year we must factor in
some of the plans will be for changes to existing garages, conversions.         improvement planning applications. Overall, there was a rise of just              the massive impact of the pandemic and how it has fundamentally              • Home

                                                                                over 4% in applications for extensions. Meanwhile, applications for               changed the relationship between households and their home.                  • About us

    This year we must factor in the massive impact of the                       loft works slipped back. This is likely to reflect the changing balance           Changing patterns in the types of improvements clearly provide               • Introduction

                                                                                in activity away from London.                                                     guides to trends in the home improver market. But they can also              • Types of improvement
pandemic and how it has fundamentally changed the
                                                                                                                                                                  provide insight into changing patterns of demand within local housing        • Who is spending?
relationship between households and their home.                                 Digging deeper, the data suggests that proportionately there was
                                                                                                                                                                  markets. The types of applications will reflect changing appetites for       • Regional overview
                                                                                a dip in the number of applications that include multiple types of
                                                                                                                                                                  amenities, whether that is a desire for more or better space inside the      • North East
                                                                                home improvements. This hints at homeowners being perhaps
But also, if we disassociate garages from cars and see them as places                                                                                             home, or improvements to the outside space with an outbuilding or            • North West
                                                                                less ambitious than in the past and more focused on one form of
to store things to free space in the house, or as a place to work, then a       improvement. This may suggest that there was an even bigger rise in               other garden works.                                                          • Yorkshire & Humber
rise in applications for garages makes sense.                                   home improvement activity that does not require planning. Certainly,              The steep rise and then decline in basement development in London            • East Midlands

Garages might be regarded alongside other garden buildings and                  that would fit with the sales figures coming from builders’ merchants             for instance tells us a lot about the flood of money and rampant house       • West Midlands

works, which are categorised separately in the table. Also, the issue           and DIY suppliers.                                                                price rises that buoyed the London housing scene from 2012 to 2016.          • East of England
                                                                                                                                                                                                                                               • London
                                                                                                                                                                                                                                               • South East
                                                                                                  Garden buildings                                                                                                        Garden buildings
 Region                        Extension        Loft works       Conservatory        Garage           & works           Region                        Extension           Loft works     Conservatory        Garage           & works          • South West
                                                                                                                                                                                                                                               • Wales
 North East                     11.6%              0.7%             -14.9%            8.8%             -10.6%           North East                      81.7%               8.5%             2.2%             9.8%             3.5%
                                                                                                                                                                                                                                               • Scotland
 North West                     13.1%              5.2%             -10.7%            17.3%            15.4%            North West                      85.9%               9.4%             1.4%             7.9%             3.0%            • Drivers of home improvement
 Yorkshire & Humber             10.3%              3.8%             -24.3%            23.8%            13.7%            Yorkshire & Humber              80.2%               13.0%            1.4%             11.6%            3.4%            • Methodology

 East Midlands                   5.9%             -4.1%             -25.4%            35.3%            4.8%             East Midlands                   79.8%               7.5%             1.6%            14.2%             4.0%

 West Midlands                   3.3%              7.5%             -5.1%             20.9%            5.3%             West Midlands                   82.5%               9.1%             1.9%             10.1%            3.5%

 East of England                 3.9%              5.0%             -25.3%            39.0%            6.7%             East of England                 77.5%               15.7%            1.4%            10.4%             3.4%

 London                          1.5%             -11.1%            -27.9%            13.4%            4.5%             London                          83.5%               19.2%            0.9%             1.8%             2.4%

 South East                      1.0%              2.7%             -23.2%            21.8%            8.3%             South East                      75.6%               16.7%            1.9%            10.8%             3.9%

 South West                      3.4%             -5.4%             -16.1%            20.0%            10.5%            South West                      73.4%               11.1%            2.9%            14.5%             5.0%            Barbour ABI, Hinderton Point,
 Wales                           5.0%             -19.8%            -17.0%            18.9%            2.7%             Wales                           77.3%               7.5%             2.4%             15.1%            4.3%
                                                                                                                                                                                                                                               Lloyd Drive, Cheshire Oaks,
                                                                                                                                                                                                                                               Cheshire, CH65 9HQ
 Scotland                        2.1%             -8.7%             -32.6%            50.0%            8.3%             Scotland                        73.6%               8.8%             1.4%            14.6%             3.5%

                                                                                                                                                                                                                                               0151 353 3500
 Great Britain                   4.3%             -2.3%             -20.9%            25.3%             7.5%            Great Britain                   81.7%               8.5%             2.2%             9.8%             3.5%            info@barbour-abi.com
                                                                                                                                                                                                                                               www.barbour-abi.com
Table 2.1                                                                                        Source: Barbour ABI   Table 2.2                                                                                         Source: Barbour ABI       @BarbourABI

Annual change in applications including the below types of home improvement                                            Share of applications including the below types of home improvement
                                                                                                                                                                                                                                                                               10
The Home Improvement Report 2021 Edition

And we can see echoing in the decline in applications for basements        Economically basements tend to work only in locations where land            The share of extensions within applications varies over time. It has for
subsequently the slowdown in house prices as the pressure within the       prices are high. This means that the high cost of works can be              instance grown markedly in London. Today the share stands at about
central London housing market seeped away from 2016 onward and             translated into a sufficiently large increase in the house price. It also   84%. In 2016 it was 71% when central London home improvement
house prices stalled.                                                      helps if house prices in the area are rising.                               activity was rampant with loft conversions and basements. The rise
While extensions are clearly the most common form of home
improvement across all parts of Britain, Table 2.2 shows that
                                                                           Rocketing house prices in London, a flood of wealth and an appetite
                                                                           for luxury living generated a boom in basement building. In 2013 three
                                                                                                                                                       in the share of extensions in the London pool of home improvement
                                                                                                                                                       applications in recent years is consistent with activity drifting from
                                                                                                                                                       central London to outer London boroughs. Here, less expensive
                                                                                                                                                                                                                                          2021 edition
there is significant variation in the popularity of the types of home      boroughs, Kensington & Chelsea, Westminster, and Hammersmith
improvement between regions. For instance, loft conversions tend to        & Fulham accounted for half of all UK planning applications for             housing and larger gardens mean extensions are likely to be a more
                                                                                                                                                       popular form of home improvement.
                                                                                                                                                                                                                                     Contents
be more popular in the higher priced and more urban areas such as          basements. In 2020 that figure had fallen to 22%.
London and southern England. Conservatories and garden buildings           Chart 2.1 illustrates just how rapidly the basement boom grew in the        Measured by planning applications for every 1,000 private homes,              • Home
are more popular in the South West and Wales.                              mid-2010s and how it has faded as London has lost some of its shine.        London remains top of the table, with an average of 16.5 versus the           • About us
These shares do change over time. As mentioned, an interesting                                                                                         9.9 national average. Scotland sits at the bottom of the list.                • Introduction
                                                                           ● Top local authorities for basements: Kensington & Chelsea,
feature of the figures for 2020 has been the rise in applications for                                                                                  In 2020, the top boroughs for extensions all saw more than 25 in              • Types of improvement
                                                                             Hammersmith & Fulham, and Westminster (all in London)
garages. Beyond this increase, which is substantial across Britain,                                                                                    every 1,000 private homes, one in 40, being the subject of a home             • Who is spending?
there has been a noticeable fall in applications for conservatories.       Extensions and conservatories                                               improvement application involving an extension.                               • Regional overview
This should be expected. Most conservatory providers will aim                                                                                          ● Top local authorities for extensions: Three Rivers, St Albans, and          • North East
                                                                           There was a solid increase of 4% in applications for extensions
to provide products to fit within the expanding scope of what is                                                                                         Brentwood (all East of England).                                            • North West
                                                                           across Britain, driven by double-digit rises in the northern regions of
permitted without planning permission.                                                                                                                                                                                               • Yorkshire & Humber
                                                                           England. Rising house prices in the north over recent years will have       The decline in applications for conservatories continues. This is likely to
                                                                                                                                                                                                                                     • East Midlands
                                                                           made extensions increasingly attractive financially compared with           be down to greater scope provided by permitted development steadily
Basements                                                                                                                                                                                                                            • West Midlands
                                                                           moving home.                                                                influencing the market. Conservatories tend to feature more heavily
Where we find basements typifies how location plays a strong role                                                                                                                                                                    • East of England
                                                                           About eight in ten home improvement applications include extensions,        within the array of applications in the South West and North East of
in where different types of home improvement are likely to be most                                                                                                                                                                   • London
                                                                           as Table 2.2 shows. This is broadly even across Britain.                    England and in Wales. This fits with their attractiveness to retirees and
common. The link between basements and London was cemented in                                                                                                                                                                        • South East
                                                                                                                                                       those living in scenic locations. But given that many conservatories
the 2010s.                                                                                                                                                                                                                           • South West
                                                                                                                                                                                                                                     • Wales
                                                                                                                                                                                                                                     • Scotland
   4,000
                                                                               K&C, Westminster, Hammersmith & Fulham                                                                                                                • Drivers of home improvement
                                                                               Rest of London                                                                                                                                        • Methodology
                                                                               Outside London

   3,000

   2,000

                                                                                                                                                                                                                                     Barbour ABI, Hinderton Point,
   1,000
                                                                                                                                                                                                                                     Lloyd Drive, Cheshire Oaks,
                                                                                                                                                                                                                                     Cheshire, CH65 9HQ

      0
              2010   2011    2012     2013     2014     2015     2016   2017         2018        2019        2020
                                                                                                                                                                                                                                     0151 353 3500
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  Chart 2.1                                                                                      Source: Barbour ABI                                                                                                                 www.barbour-abi.com
                                                                                                                                                                                                                                         @BarbourABI
  The basement boom

                                                                                                                                                                                                                                                                     11
The Home Improvement Report 2021 Edition

can be constructed without planning, it may not be a surprise that the   ● Top local authorities for loft conversions: Three Rivers and St Albans      households not just for more space in the home, but for more useful
boroughs where conservatories are most likely to appear in planning        (East of England), and Elmbridge (South East).                              and enjoyable outside space within the boundaries of the home.
applications are in some of the wealthier parts of Britain.                                                                                            Table 2.1 shows how widespread this trend was. Except for the North
● Top local authorities for conservatories: Kensington & Chelsea
                                                                         Garages, outbuildings, and garden works                                       East, every region saw a sizeable jump in planning applications being
  (London), Test Valley, and Winchester (both in the South East).        What is clear from the sales of builders’ merchants is that materials
                                                                         for the garden flew off the shelves after the first taste of lockdown.
                                                                                                                                                       submitted for outside-the-house home improvements.
                                                                                                                                                       It is interesting to note that most of those local authorities where
                                                                                                                                                                                                                                                  2021 edition
Loft conversions                                                         Fencing, decking, paving, and other related materials were seized
                                                                                                                                                       applications for garden buildings and works are high correspond to
                                                                         upon as households looked to improve their outdoor space, as is clear
Loft conversions tend to be a popular way of gaining living space
                                                                         in Chart 2.2. Having fallen back less during the initial lockdown, sales
                                                                                                                                                       those where applications for garages are also high.                                   Contents
in areas where garden space is at a premium. So, we might expect
                                                                         of landscaping materials and timber in the third and fourth quarter           ● Top local authorities for garden buildings and work: Sevenoaks (South
terraced housing in towns and cities to be a typical hot spot.                                                                                                                                                                               • Home
                                                                         of 2020 were well above normal. This lifted overall merchant sales in           East), South Northamptonshire (East Midlands), and Hambleton
                                                                                                                                                                                                                                             • About us
Not all loft conversions will need planning approval and across                                                                                          (Yorkshire and The Humber).
                                                                         those quarters above the level of the year earlier, despite lower sales                                                                                             • Introduction
Britain, despite a rise in interest in home improvement, there were
                                                                         in other products such as decorating.                                         ● Top local authorities for garages: East Cambridgeshire (East of                     • Types of improvement
about 2% fewer applications in 2020 compared with 2019. However,
                                                                         Much of the work will have been DIY and much will not have required             England), South Northamptonshire (East Midlands), and Hambleton
there was a rise in applications for roof works, which may include                                                                                                                                                                           • Who is spending?
                                                                         planning. But the planning data clearly shows a sudden and sharp                (Yorkshire and The Humber).
related changes such as putting in roof windows or dormers to                                                                                                                                                                                • Regional overview
enhance an existing loft space.                                          upward trend in more ambitious works. As we saw in Chart 1.5 earlier,         If we extend the list of top boroughs for garden buildings and garages,               • North East
                                                                         applications for both garages and garden works had been declining             we find similar profiles among the wider pool of local authorities. The               • North West
The overall fall in loft conversions was largely down to London,
                                                                         through 2019. By the end of 2020 they were racing.                            wider list includes Stratford-on-Avon, Chichester, South Oxfordshire,                 • Yorkshire & Humber
Wales, and Scotland. There was an increase in the East and South
                                                                         This fits a widely shared narrative that people were keen to improve          and Cotswold all evoking a sense of wealth and sturdy large homes                     • East Midlands
East regions of England and in the West Midlands and the three
                                                                         their homes in ways that made better use of space, certainly if we            combined with expansive gardens in scenic settings.                                   • West Midlands
northern regions.
                                                                         assume that garages were about having more space to store things,                                                                                                   • East of England
Loft works tend to be a more expensive way to gain space than an
                                                                         possibly to double as a home office or workspace, or possibly subject                                                                                               • London
extension and tend to be more heavily weighted to southern England,
                                                                         to a conversion. Lockdown seemed to raise the appreciation among                                                                                                    • South East
although Yorkshire & Humber puts in a strong showing.
                                                                                                                                                                                                                                             • South West
                                                                                                                                                                                                                                             • Wales
                                                                                                                                                                                                                                             • Scotland
                                                                                                                                Landscaping                                                                                                  • Drivers of home improvement
                                                                                                                            Timber & joinery                                                                                                 • Methodology
                                                                                                                    Heavy building materials

                                                                                                                                Ironmongery

                                                                                                                    Workwear & safetywear

                                                                                                                      Kitchens & bathrooms

                                                                                                                                        Tools

                                                                                                                                  Decorating                                                                                  2020 Q2
                                                                                                                                                                                                                              2020 Q3
                                                                                                                  Plumbing, heat & Electrical                                                                                 2020 Q4        Barbour ABI, Hinderton Point,
                                                                                                                                                                                                                                             Lloyd Drive, Cheshire Oaks,
                                                                                                                  Renewables & water saving
                                                                                                                                                                                                                                             Cheshire, CH65 9HQ
                                                                                                                    Total sales (ex VAT value)

                                                                                                                                                 -60   -40              -20
                                                                                                                                                                                 %
                                                                                                                                                                                          0                     20                      40   0151 353 3500
                                                                                                                                                                                                                                             info@barbour-abi.com
                                                                                                                  Chart 2.2                                                                     Source: Builders Merchant Building Index     www.barbour-abi.com
                                                                                                                                                                                                                                                 @BarbourABI
                                                                                                                  Quarterly sales by builders merchants compared with same quarter a year ago

                                                                                                                                                                                                                                                                             12
The Home Improvement Report 2021 Edition

Who is spending more, who is spending less?
Over the past 15 possibly 20 years the baby boom generation has been the most influential group defining where the hot spots for home improvement.
The rule of thumb was to look at homeowners in their 50s and 60s who may be contemplating retirement or life without kids at home.
A quirk of fate cast baby boomers, more than any other generation, as
a major force within the housing market. As it has aged its effects have
                                                                                               Understanding this generation has been critical to fully understanding
                                                                                               many trends in the housing market and, indeed, in home
                                                                                                                                                                              As we see in Chart 3.2 households with two retired people spend almost
                                                                                                                                                                              double the amount spent a decade ago on home improvement. But the
                                                                                                                                                                                                                                                               2021 edition
heavily influenced not just home buying, as it did in the 1980s, but                           improvement. It remains important as we seek to understand what                big spending are households in ages from around 30 up to retirement
increasingly home improvement, as it invested in what was for many a                           comes next (See: Drivers of home improvement Age profile).                     age, with families that have children among the biggest spenders.           Contents
fast-growing asset. Baby boomers, as a generation, were more likely                                                                                                           It is worth noting that household classifications can be hard to
to have owned a home than any other.                                                           Where is the sweet spot in age?                                                interpret. Increasingly young adults are moving back into the               • Home
                                                                                               Today baby boomers are aged between 57 and 75. So it is                                                                                                    • About us
The boomer generation was not just large in number but grew                                                                                                                   family home – this was not the experience of most in their parents’
into adulthood in an age that fiercely promoted homeownership,                                 unsurprising that the relative scale of spending among households in           generation. As the Resolution Foundation noted in 2018, “29% of             • Introduction

increasingly accepted the notion of a housing ladder, and presented                            the 65-to-74 age bracket is high compared with any period over the             millennials still share a home either with their parents or others to       • Types of improvement
an ever more desirable home to live in as a core aspiration. The baby                          past 15 years, as we see in Chart 3.1.                                         whom they are not partnered at the age of 30, compared to just 16           • Who is spending?
boomers fortunately benefited hugely from relaxation in lending and                            It will not be until the 2030 before all the baby boomers pass into                                                                                        • Regional overview
rampant house price inflation. In the process they accumulated huge                            pension age, but their effect is steadily waning. That said, their ability                                                                                 • North East
                                                                                                                                                                                  Today baby boomers are aged between 57 and 75.
housing wealth. This can be seen in the national property wealth tables                        to migrate around the country with large amounts of housing wealth                                                                                         • North West
as a bulge moving up the age brackets of this generation matured.                              from selling high-value homes in London and the South East remains a                                                                                       • Yorkshire & Humber

It was also the generation that feasted heavily on TV programmes                               big driver of home improvement in some parts of Britain, notably the           per cent of baby boomers at the same age”. A separate Resolution            • East Midlands

from Changing Rooms to Property Ladder and Grand Designs                                       more picturesque.                                                              Foundation report in 2017 also noted that “families often house their       • West Midlands

reinforcing a desire for home improvement, a regard for the value                                                                                                             adult children – but increasingly not their parents”. So “three or more     • East of England
                                                                                               However, currently the mother lode of home improvement on the age
home improvements can add, and an aspiration for a dream home                                                                                                                 adults no children” has taken on a very different meaning over time.        • London
                                                                                               scale has shifted to those in their 30s and 40s, closely followed by
tailored to the homeowner.                                                                                                                                                    The change has considerable implications for the propensity to spend        • South East
                                                                                               those in their 50s or running up to retirement.
                                                                                                                                                                              on home improvement.                                                        • South West
                                                                                                                                                                                                                                                          • Wales
                                                                                                                                                                                                                                                          • Scotland
                                                                                                                          2019-2020
                                                                                                                                                  Three or more                                                                                           • Drivers of home improvement
               75 or over                                                                                                 2017-2018
                                                                                                                                                adults & children
                                                                                                                          2009-2010                                                                                                                       • Methodology
                                                                                                                          2004-2005                Three or more
                                                                                                                                                adults no children
                65 to 74
                                                                                                                                            Two adults & children
  Age groups

                                                                                                                                             One adult & children
                50 to 64

                                                                                                                                          Two people (not-retired)

                30 to 49
                                                                                                                                         One person (not-retired)
                                                                                                                                                                                                                                                          Barbour ABI, Hinderton Point,
                                                                                                                                               Retired two people                                                                                         Lloyd Drive, Cheshire Oaks,
               Under 30                                                                                                                                                                                                                                   Cheshire, CH65 9HQ
                                                                                                                                                                                                                                           2019-2020
                                                                                                                                              Retired one person

                            0   25            50                     75
                                         Percentage (%) of overall average household spend
                                                                                             100                125               150
                                                                                                                                                                     0      500             1,000            1,500            2,000
                                                                                                                                                                                                                                           2009-2010

                                                                                                                                                                                                                                                 2,500
                                                                                                                                                                                                                                                          0151 353 3500
                                                                                                                                                                                                                                                          info@barbour-abi.com
   Chart 3.1                                                                                       Source: ONS Family Spending survey   Chart 3.2                                                                    Source: ONS Family Spending survey   www.barbour-abi.com
                                                                                                                                                                                                                                                              @BarbourABI
   Pattern of spend on home improvements by age                                                                                         Average annual spend (£) by household type over years 2019-2020 and 2009-2010

                                                                                                                                                                                                                                                                                          13
The Home Improvement Report 2021 Edition

How big an indicator is the community?                                            fact that many will not be employed may flatter the figures given our
Using the 2011 Area Classification for Output Areas we can gain insight           metric of applications per 1,000 employed. But the housing stock is
into the characteristics of communities that have a much higher or                weighted towards detached homes, which do offer scope for multiple
lower propensity to put in a planning application for home improvement            home improvements, particularly garden outbuilding, garages, and
than others. This will be down to many factors, the wealth, the housing
stock, household structures, and cultural differences among many
                                                                                  other outside works.
                                                                                  The larger communities in the list, however, are those in the Suburban                                                                                                  2021 edition
others, which the classifications seek to capture.                                Achievers and Semi-detached Suburbia groups, which fall into the
These classifications have eight broad groupings (supergroups)                    Suburbanite supergroup (6), and Urban Professionals & Families and                                                                                                 Contents
which are then subdivided into 26 groups and further divided into                 Ageing Urban Living groups which fall into the Urbanites supergroup (5).
76 subgroups. Tables 3.1 & 3.2 draw from the 26 group classifications.            When we look at those groups seeing the biggest uplift in 2020,                                                                                                    • Home
They show firstly the top 10 areas types where planning applications              Table 3.2, there is a lot of crossover. Although top of the table we                                                                                               • About us
are most common and secondly the biggest risers between 2019 and                  find Challenged Terrace Workers a subset of the Hard-pressed Living                                                                                                • Introduction
2020. The measure used is how many planning applications were                     group (8). This rise fits with the regional data we see, as these groups                                                                                           • Types of improvement
submitted for every 1,000 people in employment. The employment                    are more concentrated in northern England and Wales, which has                                                                                                     • Who is spending?
also allows us to scale the size of the population within each group.             seen stronger house price inflation that may also have increased                                                                                                   • Regional overview
Table 3.1 looks at areas where applications are highest as a                      the appetite for home improvement. Households in this group are                                                                                                    • North East
proportion of the employed population. Topping the table is Asian                 more likely to have non-dependent children and more likely to live in                                                                                              • North West
Traits. This subgroup of Multicultural Metropolitans supergroup (8)               terraced homes, as the description suggests.                                                                                                                       • Yorkshire & Humber
has a higher proportion of people of Asian ethnicities. They are more             Interestingly there was a decline in home improvement applications                                                                                                 • East Midlands
likely to be homeowners living in detached houses or semis, with two              in communities within the Asian Traits subgroup. Indeed, while not                                                                                                 • West Midlands
or more cars, low unemployment, and working in information and                    shown within the table, applications fell in most of the groups in the                                                                                             • East of England
communications or financial related industries.                                   Multicultural Metropolitans supergroup (4). Furthermore, across                                                                                                    • London

Second comes Ageing Rural Dwellers, a subset of the Rural Residents               all the groups within the highly London-based Ethnicity Central                                                                                                    • South East
supergroup (1). Here there is a higher proportion aged 65 and over,               supergroup (3) applications fell in 2020. All groups within the                                                                                                    • South West
particularly those over 90, often living in communal homes. The                   Cosmopolitan supergroup (2) all saw applications decline in 2020.                                                                                                  • Wales
                                                                                                                                                                                                                                                     • Scotland
                                                                                                                                                                                                                                                     • Drivers of home improvement
                                                 Change in applications     Applications per     Share (%) of those in                                                      Change in applications     Applications per     Share (%) of those in
 Area classification groups            Code         2019 to 2020            1,000 employed          employment             Area classification groups            Code          2019 to 2020            1,000 employed          employment            • Methodology

 Asian Traits                           4C               -5.1%                   24.7                   2.5%               Challenged Terraced Workers             8B               11.2%                    2.7                   2.9%

 Ageing Rural Dwellers                  1C               8.6%                    17.3                   1.5%               Ageing Rural Dwellers                   1C               8.6%                    17.3                   1.5%

 Suburban Achievers                     6A               6.4%                    16.9                   8.5%               Farming Communities                     1A               8.4%                    16.2                   3.7%

 Farming Communities                    1A               8.4%                    16.2                   3.7%               Rural Tenants                           1B               7.6%                    14.3                   6.2%

 Rural Tenants                          1B               7.6%                    14.3                   6.2%               Industrious Communities                 8A               6.7%                     5.5                   4.8%

 Ageing Urban Living                    5B               2.0%                    11.9                   7.8%               Semi-Detached Suburbia                  6B               6.5%                    10.4                   12.7%             Barbour ABI, Hinderton Point,
                                                                                                                                                                                                                                                     Lloyd Drive, Cheshire Oaks,
 Semi-Detached Suburbia                 6B               6.5%                    10.4                   12.7%              Suburban Achievers                      6A               6.4%                    16.9                   8.5%
                                                                                                                                                                                                                                                     Cheshire, CH65 9HQ
 Aspiring and Affluent                  2D               -4.4%                    8.8                    2.1%              Hard-Pressed Ageing Workers             8C               4.8%                     5.0                   4.5%

 Aspirational Techies                   3D               -2.5%                    7.6                   2.5%               Urban Professionals and Families        5A               4.5%                     7.5                   12.1%             0151 353 3500
 Urban Professionals & Families         5A               4.5%                     7.5                   12.1%              White Communities                       7C               4.2%                     2.1                   1.9%              info@barbour-abi.com
                                                                                                                                                                                                                                                     www.barbour-abi.com
Table 3.1                                                                                      Source: Barbour ABI, ONS   Table 3.2                                                                                       Source: Barbour ABI, ONS       @BarbourABI

Top 10 area classifications ranked by applications per 10,000 people employed                                             Top 10 area classifications ranked by change in the number of applications
                                                                                                                                                                                                                                                                                     14
The Home Improvement Report 2021 Edition

                                                                                                                                        This supergroup, which is characterised by densely populated urban             home workers broadly trebled. The view is that things will never be
                                                                                                                                        areas, includes the Comfortable Cosmopolitans and Aspiring Affluent            the same, with homeworking becoming an established norm.
                                                                                                                                        groups and areas heavily populated with students.                              The immediate impact was to create what some in housing circles
                                                                                                                                        That there were falls across these areas fits the broader narrative            described as a “race for space”, with people moving to buy a bigger
                                                                                                                                        that the pandemic reshaped the demand for home improvement
                                                                                                                                        quite substantially.
                                                                                                                                                                                                                       home. House prices went up while the price of flats fell in many areas,
                                                                                                                                                                                                                       particularly in London. People also turned to improving their homes                 2021 edition
                                                                                                                                        Certainly, when we look at the pattern of change in local authorities          and gardens when they could after the start of the first lockdown.
                                                                                                                                        using a similar classification to describe their predominant population        No one knows how this will pan out precisely, but there is a                   Contents
                                                                                                                                        (Chart 3.3) it is those cast within the groups of London cosmopolitan,         broadening view that homes have been revalued in the minds of
                                                                                                                                        University towns and cities, and Ethnically diverse metropolitan               households and homeowners. This suggests households will be willing            • Home
                                                                                                                                        categories that saw applications fall in 2020. Local authorities that          to spend more on improving their homes than in the past. Importantly,          • About us
                                                                                                                                        were predominantly rural and suburban did well, as did urban areas             they will also look to make the space they work in more suitable.              • Introduction
                                                                                                                                        in existing and former industrial heartlands.                                                                                                                 • Types of improvement
                                                                                                                                                                                                                       The effects of this can be seen in the home improvers data, with
                                                                                                                                                                                                                                                                                                      • Who is spending?
                                                                                                                                        When we examine areas based on deprivation, Chart 3.4 suggest it               applications for garden outbuildings and works and garages (which
                                                                                                                                                                                                                                                                                                      • Regional overview
                                                                                                                                        is communities at either end of the scale that have been more active           will include many conversions) surging.
                                                                                                                                        in putting in planning applications for home improvement over the                                                                                             • North East
                                                                                                                                                                                                                       As we look to the future, those tracking the home improvement
                                                                                                                                        pandemic period.                                                                                                                                              • North West
                                                                                                                                                                                                                       market will be interested in how those who are given the opportunity
                                                                                                                                                                                                                                                                                                      • Yorkshire & Humber
                                                                                                                                                                                                                       to work more from home or those who are thrust into it will react
                                                                                                                                        Working from home                                                              to the change. What doesn’t work for them in their current home
                                                                                                                                                                                                                                                                                                      • East Midlands

                                                                                                                                        A massive factor in the upswing in home improvement issues must                                                                                               • West Midlands
                                                                                                                                                                                                                       if they make the leap to far more homeworking in the future? If
                                                                                                                                        be the enforced mass experiment in working from home. The figures                                                                                             • East of England
                                                                                                                                                                                                                       their current home doesn’t work for them, where and in what type
                                                                                                                                        have fluctuated but taking data for late November last year compared                                                                                          • London
                                                                                                                                                                                                                       of home they would ideally like to live? Can they afford to move
                                                                                                                                        with 2019 data, Chart 3.5 shows that across Britain the number of                                                                                             • South East
                                                                                                                                                                                                                       or improve?
                                                                                                                                                                                                                                                                                                      • South West
                                                                                                                                                                                                                                                                                                      • Wales
                                                                                                                                                                                                                                                                                                      • Scotland
                                                      Rural-Urban fringe                                                                                        2.4%
                                                                                                                                                                                     16
                                                                                                                                                                                                 2019                                                                                                 • Drivers of home improvement
                                                           Thriving rural                                                                      4.5%
                                                       Ethnically diverse                                                                -3.4%
                                                                                                                                                                                                 2020                                                                                                 • Methodology
                                                           metropolitan
  Area group classification of local authorities

                                                         Suburban traits                                                 7.6%
                                                                                                                   -2.9%                                                             12
                                                   London cosmopolitan

                                                             Town living                                          8.6%

                                                           GB AVERAGE                                            4.3%
                                                                                                                                    Percentage figure are the rise
                                                          Country living                                         7.8%
                                                                                                                                    or fall in applications between
                                                              University                                    -0.5%                                                                     8
                                                                                                                                                                                 %
                                                           towns & cities
                                                   Remoter coastal living                                 5.7%
                                                                                                                                                 2019 & 2020
                                                            Countryside                                   5.1%

                                                    Larger towns & ciites                          3.6%                                                                                                                                                                                               Barbour ABI, Hinderton Point,
                                                                                                                                                                                      4
                                                    Manufacturing traits                           8.4%                                                                                                                                                                                               Lloyd Drive, Cheshire Oaks,
                                                        Servs., manu. &
                                                          mining legacy
                                                                                           11.5%
                                                                                                                                                                        2020                                                                                                                          Cheshire, CH65 9HQ
                                                      Scottish industrial           7.4%                                                                                2019

                                                                                                                                                                                                                                                                                                      0151 353 3500
                                                                 heritage

                                                                            0   5               10                    15                  20               25              30         0
                                                                                                                                                                                             1          2         3         4          5         6         7          8          9         10
                                                                                    Home improvement applications per 1,000 private homes
                                                                                                                                                                                                                                                                                                      info@barbour-abi.com
 Chart 3.3                                                                                                                                            Source: Barbour ABI, ONS   Chart 3.4                                                                                 Source: Barbour ABI, ONS   www.barbour-abi.com
                                                                                                                                                                                                                                                                                                          @BarbourABI
 Activity by local authority area classification                                                                                                                                 Share of home improvement planning applications by index of multiple deprivation decile

                                                                                                                                                                                                                                                                                                                                      15
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