DIY spending falls to record low
New research shows that DIY spending is at the lowest level since records began!
Spending on DIY has fallen to its lowest level in 15 years.
That’s according to new research by Lloyds, which found that households spent a total of £7.8 billion on DIY in 2011, the equivalent of around £300 per household. That’s the lowest level since Lloyds began tracking DIY spending in 1996, and is about half the £15.5 billion spent in 2004.
Let’s take a look at how spending habits have changed over the last decade:
|
|
Materials - £bn |
Tools - £bn |
Total DIY Spending - £bn |
Spending on Trades Services - £bn |
Total Spending on Home Maintenance (DIY plus Trade Services) £bn |
Ratio of DIY Spending to Spending on Trades Services |
|
2001 |
8.8 |
2.9 |
11.7 |
11.8 |
23.5 |
0.99 |
|
2002 |
9.3 |
3.5 |
12.8 |
11.1 |
23.8 |
1.15 |
|
2003 |
9.8 |
4.2 |
14.0 |
10.2 |
24.2 |
1.37 |
|
2004 |
11.2 |
4.2 |
15.5 |
9.5 |
25.0 |
1.63 |
|
2005 |
10.5 |
4.5 |
15.0 |
9.1 |
24.2 |
1.65 |
|
2006 |
9.3 |
4.9 |
14.2 |
9.4 |
23.6 |
1.52 |
|
2007 |
8.5 |
5.3 |
13.8 |
8.6 |
22.4 |
1.61 |
|
2008 |
8.1 |
4.7 |
12.8 |
7.7 |
20.5 |
1.66 |
|
2009 |
6.7 |
3.8 |
10.5 |
7.3 |
17.8 |
1.43 |
|
2010 |
5.6 |
3.8 |
9.4 |
6.97 |
16.4 |
1.35 |
|
2011 |
4.7 |
3.1 |
7.8 |
7.04 |
14.8 |
1.10 |
|
% Change 2010-2011 |
-16% |
-19% |
-17% |
1% |
-10% |
- |
|
% Change 2001-2011 |
-47% |
6% |
-34% |
-40% |
-37% |
- |
While the amounts spent have dropped significantly in recent years, many of us will still be looking to do some form of home improvement work over the bank holidays in May and June, and indeed throughout the summer.
The big question for many of us is how to pay for that work.
The best way to pay
Undoubtedly, the best way to pay for improvement work is out of your own pocket. If you know that work needs doing, start saving. Stick your cash in a decent easy access account, and then you’ll be able to get your hands on it once your pot is sufficiently big.
However, that’s not an option for many of us.
Going with a credit card
For spends of less than £5,000, your best bet is probably a credit card that offers a period of 0% interest. You have two options here: you can take out a card offering 0% on your purchases, and do your DIY spending on that card. Alternatively, you can spend on your existing card, then move the balance over to a 0% balance transfer card.
The latter option will give you a little more breathing space before you’ll start paying interest on your debt, as the tables below demonstrated:
The top five credit cards offering 0% interest on purchases
|
Card |
0% period |
|
18 months |
|
|
15 months |
|
|
15 months |
|
|
Tesco Clubcard |
15 months |
|
M&S Money MasterCard |
15 months |
The top five credit cards offering 0% interest on balance transfers
|
Card |
0% period |
Transfer fee |
|
HSBC Visa* |
23 months |
3.3% |
|
22 months |
2.9% |
|
|
22 months |
3.5% |
|
|
21 month |
2.6% |
|
|
20 months |
2.9% |
*Existing current account holders only
The Barclaycard 22-month Platinum is an even better option in May, as you’ll get a £30 discount on your transfers. As I explained in this article, that discount can make a serious difference.
For bigger spends
If you need to borrow larger amounts, then a personal loan is probably your best bet. The good news is that you can now borrow £7,500 for less than 6%, an incredible rate. For more, read Top personal loan rates fall to 5.9%.
More on borrowing and banking:
Why the best balance transfer card just got better
Co-operative Bank offers £100 incentive for taking out its Current Account Plus
New market-leading credit card for purchases and balance transfers
How to use credit cards for transfers and new purchases
The best money transfer credit cards
Most Recent
Comments
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Level of DIY skill in this country is abysmal. Most young men should hang their heads in shame that they can't do basic plumbing, electrics and carpentry. Schools are now giving priority to so many BS subjects with no regard to life skills that it's no wonder that DIY sales are sliding. Lower volume sales mean ludicrous margins on items which are sold in stores like B&Q which are full of imported Chinese cr*p at 1000% mark up on original import prices. In the USA the larger DIY stores are also mostly open until midnight which gives much better opportunity for family shopping and planning.
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@Kath If employing a tradesman was tax deductible it would create a few jobs as people employed gardeners and other people. But when did the government ever do anything sensible?
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VAT needs to brought down. I know lots of trades men without work. No VAT on a new build but house improvements including essential ones cost an extra 20%. No wonder the DIY market is in decline. We would love to extend and give some work to local trades men but an extra 20% on top of the cost of labour and materials is unaffordable and not adding much value to a property. In some cases it is a better solution and more cost effective to rebuild and that can’t make sense. If we want to get the economy going again and get people back into work and spending VAT on some things need to be reduced.
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14 May 2012