Home movers are the ultimate KBB clients
Despite rising business rates, TwentyCi’s CEO, Colin Bradshaw, says independent retailers can stay optimistic in 2025, thanks to a strong housing market and healthy demand in the property sector.
Words: Colin Bradshaw
In November, the Bank of England cut interest rates from 5% to 4.75% which has stimulated more house moves, and increased consumer spending on house repairs and renovations.
According to the BDO High Street Sales Tracker, homeware purchases in December 2024 grew by +11.4% from a base of -1.6% for the same month last year. The latest consumer confidence survey showed growth in terms of the personal financial outlook bolstered by wage growth of 5.2% in October 2024 and inflation adjustments.
One of the strongest indicators of the spending recovery is the number of properties put up for sale in the last quarter of 2024. Supply of properties newly listed for sale is at the highest level it has been in the last six years, reflecting an 8.1% annual increase.
Buyer confidence is high, following two interest rate cuts and expectation of further reductions.
Demand volumes (which we measure as sales agreed) have increased by 17.3% compared to 2023 and we’re seeing this growth in demand across the whole of the UK and all property price brackets. Homeownership remains the attractive option with the ONS reporting private rents up by 9% in 2024 and above-average earning rates.
This is fantastic news for the KBB and home improvement sector as growth in property transactions will continue well into 2025.
Let us not forget Labour’s pledge to get Britain building again. We will likely see even more house moves – which ultimately means more opportunities for kitchen and bathroom upgrades for those relocating to older properties.
Home advantage
The predictability of home mover spending is three times higher than that of non-movers, making this audience one of the most valuable for retailers.
Now, in early 2025, 1.4 million households are progressing through the owner-occupied journey. This is up by 15% compared to the start of 2024, showing a significant upwards trajectory which bodes well for both a positive and growing level of transactions in 2025.
Home movers’ purchasing needs are immediate and substantial, spanning multiple categories from big-ticket items to everyday essentials.
For KBB retailers, this creates a unique opportunity to drive growth in 2025. The move-in moment is fleeting, but the potential for long-term gains is vast – now is the time to act.