With Retail sales in 2020 at their worst level in 25 years there is a silver lining for those retailers who attract sales from homemovers. Data from November shows that mortgage approvals were at a 13 year high in November*, as people rush to take advantage of the Stamp Duty Holiday which is currently scheduled to conclude at the end of March 2021.
Mortgage approvals are broken into two audiences, those who are buying a house and those who are re-mortgaging - both these audiences have huge value to retailers for slightly different reasons –
- Purchasers – there are currently 530,000 house purchases aiming to complete in Q1. During the pre & post moving phase these consumers arguably are the most valuable consumer on the planet and will spend across a large number of categories including furniture, DIY, soft furnishings, kitchens & bathrooms. Other sectors also benefit from a house move with a strong correlation between a transaction and a change in car.
- Re-mortgages – these consumers are staying put in their current home, but a re-mortgage very often generates a capital injection or a reduction in monthly mortgage payments and the expenditure generated mirrors that of a purchaser.
With lockdown #3 going beyond the Tier 3 restrictions and forcing the closure of non-essential retail, establishing a plan to recover some of the Q1 revenue shortfall will become an urgent pre-requisite. With a higher level of unemployment expected to persist and the impact of Brexit still largely unknown, the confidence of general consumers may be cautionary whereas a focus on homemovers that are unable to defer their expenditure should be a cornerstone of many retailers marketing programmes.
Get in touch with us today to find out how we can help you reach these value audiences.
TwentyCi | enquiries@twentyci.co.uk | 01908 829300
*Source: https://londonlovesproperty.com/uk-mortgage-approvals-hit-13-year-high/