Economic Figures Reflect Reality
30Jul '14
The news last week that UK economic growth is now back to pre-recession levels at 0.2% ahead of the pre-recession peak (Q1 2008), along with Q2 2014 increase of 0.8% is good news, and is to be welcomed.
Whilst some say that wage inflation is still lagging, figures from the KBSA indicate that this is not holding back their members’ business – a clear indication that those who are not moving have decided to upgrade their property – and this will continue to drive kbb markets in the short to mid-term.
In 2014, kitchen values over £20,000 (at consumer buying prices) have increased by 51% over the 2010 level – when the recession was at its deepest but sales under £12,000 still represent slightly more than 1 in 5 of all sales.
For bathrooms under £12,000, the figure is 43% (57% in 2010) and this is probably a reflection of how bathroom design has dramatically changed during this period, with less of a fully fitted look, and more free standing units now being specified.
For Bedrooms, almost half (49%) remain under £12,000, and research suggests that bedroom modernisation is a relatively quick solution for enhancing a home and providing consumer satisfaction.
Graham Ball, Chief Executive Officer, said ‘This research shows the quality and width of the independents’ offer for today’s consumer. You don’t have to win the lottery to buy from an independent, but what you will get is real value for money, with the widest choice of the best products – all professionally installed and project managed. The independent is the standard bearer for our industry, and their success has led to many trying to replicate this, but most have failed to deliver’’.