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Are householders moving on or sprucing up? A look at the trends in planning activity for households across the country
Home improvers of Great Britain 2017WRITTEN BY…
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Overview
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East of England
REGION FOCUS…
East Midlands
London
North East
North West
Scotland
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West Midlands
Outlook
Britain’s Home Improvers ReportAPRIL 2017
Hinderton Point, Lloyd Drive, Cheshire Oaks, Cheshire, CH65 9HQT: 0151 353 3500E: [email protected]: www.barbour-abi.com
@BarbourABI
Home
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The Federation of Master Builders (FMB)
British people love their homes and are obsessed with home
improvement. The Barbour ABI Home Improvers Report provides a
unique insight into the trends in domestic refurbishment right across
Great Britain. Not only does it allow us to take the temperature of this
vital business sector as a whole, the granular data also allows as to look
at regional trends and dig down into the detail of what’s happening in
any particular town and city.
The Federation of Master Builders (FMB) is the largest trade association
in the UK construction industry, representing thousands of small and
medium-sized (SME) construction firms in England, Wales, Scotland
and Northern Ireland. It is our members – the small local builders – who
are carrying out this work and as such, this information is invaluable.
The results of this year’s Barbour ABI Home Improvers Report show
that there was an 6% rise in home improvement work that requires
planning permission in 2016 compared to 2015 and these results
chime with our own research. Despite gloomy predictions from
many economists in the run up to the EU referendum last summer,
construction SME workloads have not only held up, they are in rude
health. Even as we approached Article 50 being served at the end of
March 2017, the results of the FMB’s State of Trade Survey for Q1 2017
show that construction workloads continued to grow and 50% of firms
expect this trend to continue into Q2 2017.
But it’s not all good news – builders do have concerns about the
spike in material prices following the depreciation of the pound.
Construction SMEs are also faced with an increase in wages due to
the ever-worsening construction skills shortage. Unfortunately these
price increases will have to be passed onto the consumer which may
dampen consumer demand during 2017.
However, for now, there is much to celebrate – a booming SME
construction sector and a strong rise in home improvement work right
across Great Britain. Not bad when you consider what most analysts
were predicting following the UK’s vote to leave the EU.
About the Federation of Master BuildersThe Federation of Master Builders (FMB) is the largest trade association in the UK construction industry representing thousands of firms in England, Scotland, Wales and Northern Ireland. Established in 1941 to protect the interests of small and medium-sized (SME) construction firms, the FMB is independent and non-profit making, lobbying for members’ interests at both the national and local level.
The FMB is a source of knowledge, professional advice and support for its members, providing a range of modern and relevant business building services to help them succeed. The FMB is committed to raising quality in the construction industry and offers a free service to consumers called ‘Find a Builder’.
Please visit www.fmb.org.uk.
Brian BerryCHIEF EXECUTIVE OF THE FMB
The results of this year’s Barbour ABI Home Improvers Report show that there was an 6% rise
in home improvement work that requires planning permission in 2016 compared to 2015 and these
results chime with our own research
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@BarbourABI
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The desire to improve our homes runs deep in the
British psyche. Compared with other nations we tend
to preserve our homes more and demolish few. So we
have one of the oldest housing stocks in world. The
latest English Housing Survey suggests around three
quarters of homes are more than 50 years old. Also
home owners today appear to be moving less often
than they used to. So for those keen to upgrade their
homes, home improvement will loom ever larger.
For those who make a living from home improvement
either doing the work or selling products and services,
the key questions include: Who are the home owners
most likely to improve? Where are households likely
to dig deep into their pockets to shell out on home
improvement projects? What influences their decision?
We can get big clues from looking at the local
authorities that come top of the Home Improvers
tables, which gauge where private homes are most
likely to be the subject of a home improvement
planning application.
Naturally not all home improvements need planning
permission and legislation has reduced the need for
many would-be home improvers to seek planning
before embarking on their projects. But a substantial
number of the larger home improvement projects will
require planning approval and Barbour ABI captures
data on all these applications across Britain.
This data when scaled for the size of the local housing
market provides a good indicator of where home
improvement hot spots lie. If we link this information
to other sources of data we can begin to gain a better
insight into what drives and what suppresses a
household’s decision to invest in improving their home.
As we will see, some of these are pretty obvious.
Where there’s more money there’s likely to be more
home improvement. Some factors are less obvious.
Some can appear to work in both directions,
depending on market conditions, in how they prompt
home owners to improve or move as they seek a home
that better fits their changing needs and aspirations.
So, armed with the rankings of home improvers
nationally and regionally and an array of different data
we’ve sought to tease out some of the factors that are
likely to support home improvement activity and those
which make it more likely in one area than another.
Naturally, underlying all of this, the health of the
economy will play a major part in determining the
confidence of those considering putting their hands
in their pockets to splash out on a major investment
in their home.
But what will become very clear as we explore various
factors below is that the pattern of households
who are likely to spend on home improvement is in
constant flux.
The economyAs we can see from Fig. 1.1 home improvement
activity shifts very closely with changes in the
economy. If we follow the heavier red line in Fig. 1.1
which shows the four-quarter average number of
home improvement applications the link is very clear.
The correlation becomes even stronger if you lag
the measure for home improvement applications
six months after the corresponding GDP figure.
This suggests the number of home improvement
applications have risen or fallen in line with rises or
falls in GDP about six months later.
But the impact of economic growth and recessions is
not evenly distributed between households and this
can alter the pattern of home improvement across
the nation. For instance, closer examination of the
data indicates that the recession hits those reliant on
income in terms of spending on home improvement
more than those with wealth. Conversely a strong
economy tends to support more growth in home
improvement spend among those reliant on
income rather than wealth. In recessions those
in employment were more likely to hold back on
improvements than those in or near retirement. So, in
the South West, a traditional retirement destination,
OVERVIEW…
The changing drivers of home improvement
60
70
80
90
100
110
120
130
140
Qua
rter
ly n
umbe
r of h
ome-
impr
over
app
licat
ions
(thou
sand
s)
Dec08
Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
380
400
420
440
460
480
500
Quarterly GDP (£bn) constant prices
Applications quarterly moving average
FIG 1.1
GDP and home improvement planning applicationsSource: Barbour ABI, ONS
Home owners today appear to be moving less often than they used to
The impact of economic growth and recessions is not evenly distributed
between households
CONTINUED
Those reliant on income in terms of spending
on home improvement are hit by the recession,
more than those with wealth
CAN BE KEYRecession
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Hinderton Point, Lloyd Drive, Cheshire Oaks, Cheshire, CH65 9HQT: 0151 353 3500E: [email protected]: www.barbour-abi.com
@BarbourABI
Overview
the home improver market was more sheltered from
the recession than many other parts of Britain.
One quick indicator of how the economy influences
home improvement projects is to look at another
big-ticket outlay for households, such as a car. Fig. 1.2
shows a strong relationship between car sales and
home improvement. Economists will tell you that
work on home improvement tends to follow car sales
by about nine months. So it provides a neat early
warning indicator.
House pricesIn Fig. 1.3 we plot the average number of home
improvement applications for every 100 private
homes in each of Britain’s local authorities over three
years against the average house price. It seems pretty
conclusive that there’s a strong link.
But look at the data regionally and the relationship
varies in strength from region to region. It is very
strong in Yorkshire & Humber and in the North East,
but much weaker in the South West and Scotland.
Why this is the case is not clear from the data. There
will be a number of factors at play. Certainly we
might reasonably speculate, at least for the South
West and Wales, that one reason for the weaker link
might be the high number of second homes. This
could moderate the relationship between home
improvement and house prices.
The key point, though, is that house prices in most
places have a significant bearing on how much larger
scale home improvement projects are undertaken.
This should not be too surprising as the higher price
housing areas tend to be home to the better paid and
wealthier.
Home salesThe link between the number of sales of private
homes and the money spent on repairing or doing
up homes is generally accepted among economists
who track construction. Finding good data to back
it up isn’t that easy. But we can see when comparing
transactions with the official figures for work done by
contractors on private housing repair, maintenance
and improvement (Fig. 1.4) that the two follow a
similar path.
This doesn’t prove a causal link, but it supports the
idea that the more sales of homes the more home
improvement there will be. But again we would
generally expect more home sales when the economy
is more buoyant and we would also expect more
home improvement.
As Fig. 1.4 shows, over the last couple of years we have
seen a faster rise in housing repair, maintenance and
improvement activity than in residential transactions.
Interestingly, in previous years we have found that
in local authorities where a higher proportion of the
housing stock had been sold there had been a higher
CONTINUED… The changing drivers of home improvement
10,000
12,000
14,000
16,000
18,000
20,000
22,000
Priv
ate
hous
ing
RMI (
£’00
0)
1998 2000 2002 2004 2006 2008 2010 2012 2014 20160
400
800
1,200
1,600
2,000
Thousands of transactions (England & Wales only)
FIG 1.4
Home sales and private housing repair, maintenance and improvementSource: Barbour ABI, HMRC
0 2 4 6 80
200
400
600
800
1,000
1,200
1,400
Aver
age
hous
e pr
ice
(£’0
00)
Home improvement applications per 100 private homes
FIG 1.3
Home improvements and house prices by local authoritySource: Barbour ABI, DCLG, ONS
CONTINUED
0
4,000
8,000
12,000
16,000
20,000
24,000
Priv
ate
hous
ing
RMI (
£m)
1998 2000 2002 2004 2006 2008 2010 2012 2014 20160
500
1,000
1,500
2,000
2,500
3,000
Thousands of new car registrations
FIG 1.2
Car sales and contracted-out private housing repair, maintenance and improvementSource: ONS, SMMT
We would generally expect more home sales when the economy is
more buoyant
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@BarbourABI
Overview
proportion of home improvement applications.
However, this relationship appears to be shifting,
particularly in the hotter markets and is very apparent
when we compare regional data.
So, a once positive relationship between higher sales
and higher levels of home improvement in London,
the East of England and the South East has turned
negative. Higher levels of home improvement appear
now to be related to low levels of sales.
If we look closer at the data we appear to be seeing
falling sales in some of the hotter housing districts,
but in many cases rising home improvement. As
Fig. 1.5 shows the hotter home improvement districts
tend to be found in places where sales are falling.
Trying to unpick all the links and causes is a highly
complex task with different housing markets at
different phases of growth. And not all home sales
are to home movers, with first-time buyers, buy-to-let
landlords and second-home buyers all active in the
market and the proportion of home movers far lower
than in years gone by.
But one possible explanation for some of this change
may be that in areas where house prices are rising fast,
finding and buying a better new home in the same local
neighbourhood becomes harder for many existing
home owners. This would, one might expect, increase
the attractiveness of improving rather than moving.
What we can see however very clearly in the data
is that where there are higher prices, the ratio of
home improvement to home sales is higher as we
see in Fig. 1.6. Were we to cast this with data from a
few years ago we would see that the ratio of home
improvement applications to home sales has risen,
especially in the higher-priced housing areas, which
tends to support the suggestion that would-be home
movers may well have decided to improve their
current home rather than buy elsewhere.
This analysis is clearly a simplification because many
other factors are at play. But we can see suggestions
of this process at play in various locations. It does
seem to point to the notion that in a heated market
there is a relative increase in the proportion of people
improving rather than moving if not an increase in the
actual number of people improving.
An interesting example of where the rate of home
improvement has risen while homes sales have fallen
is Cambridge. Here we have seen a sharp rise in price
and a strong increase in sales between 2009 and 2014.
However, in 2015 and 2016 there has been a marked
fall in sales, presumably as prices became too high for
many would-be buyers. But as sales fell there was a
rapid rise in home improvement applications.
The central point here is that there are both positive
and negative relationships in play when it comes to
the connection between home improvement and
housing transactions. The data available here seems
to suggest a more positive link in the early stages of
recovery and a growing negative link when a housing
market becomes overheated and the option to
improve rather than move becomes more attractive.
CONTINUED… The changing drivers of home improvement
Not all home sales are to home movers, with first-time buyers, buy-to-let landlords and second-home buyers all active in the market
In a heated market there is a relative increase in the proportion of people
improving rather than moving
CONTINUED
0
10
20
30
40
50
60
70
80
90
100
NorthEast
NorthWest
Yorks &Humb
WestMids
EastMids
East London SouthEast
SouthWest
Wales Scotland
Plan
ning
app
licat
ions
per
100
sale
s
0
100,000
200,000
300,000
400,000
500,000
Average house price (£)
FIG 1.6
Number of home improvement planning applications for every 100 home sales and average house price, by region 2016Source: Barbour ABI, HM Land Registry, ONS, Registers of Scotland
0 1 2 3 4 5 6 7-35
-25
-15
-5
5
15
25
35
Chan
ge in
sale
s, 20
16 ve
rsus
ave
rage
of 2
014
& 20
15 (%
)
Home improvement applications per 100 private homes
R2 = 0.3063
FIG 1.5
Home improvements in 2016 and changing level of sales by local authoritySource: Barbour ABI, HM Land Registry, ONS, Registers of Scotland
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Overview
IncomeHome improvement tends to be expensive. So
inevitably there is a strong relationship between the
average earnings in an area and the level of home
improvement.
Over the past 5 years the top 20% of households
on the income scale have spent about 14 times the
amount on home improvements than the bottom
20%, according to the Office for National Statistics on
family spending (Fig. 1.7).
Fig. 1.8 plots the Barbour ABI home improvement
applications numbers for each local authority against
average income. It illustrates the strong relationship.
This is no surprise as income will tend to determine
average house prices, so we’d expect to see similar
patterns. Interestingly though, finer regional analysis
shows a much weaker link in the South West,
Scotland and Wales. The link appeared strongest in
the South East.
PlanningDo people turn to home improvement more in areas
where planning for new homes is tougher to win?
Well, the data seem to suggest so. Using Barbour
ABI planning data we can measure the proportion of
applications rejected or withdrawn. The data are from
the past and so may not necessarily reflect current
practice, but they will be indicative and provide a
rough-and-ready measure of planning rigidity for each
local authority.
When we look at the national picture (Fig. 1.9) it
seems that there is a link between it being tougher
to get permission for new homes and more home
improvement. This doesn’t mean there’s a causal link.
It could well be that well-to-do people are both more
prone to improving their homes and also more averse
to new homes being built near them.
As with other factors, the impact of planning
rigidity seems to vary region to region. In London,
Scotland and the South West the correlation
between planning rigidity and home improvement
applications is negligible.
Rural or urban?The most active locations for home improvement
at the moment are in London. But does an urban
or a rural setting influence the likelihood of the
owner submitting a home improvement planning
application?
CONTINUED… The changing drivers of home improvement
Inevitably there is a strong relationship between the average
earnings in an area and the level of home improvement
0 1 2 3 4 5 6 70
10
20
30
40
50
60
Plan
ning
rigi
dity
inde
x
Home improvement applications per 100 private homes
R2 = 0.3213
FIG 1.9
Housing improvements and planning rigidity by local authoritySource: Barbour ABI
0 1 2 3 4 5 6 70
10
20
30
40
50
60
70
Aver
age
inco
me
full-
time
empl
oyee
jobs
(£’0
00)
Home improvement applications per 100 private homes
R2 = 0.6208
FIG 1.8
Home improvements and average income by local authoritySource: Barbour ABI, ONS, ASHE
54.1%
20.8%
12.6%
8.6%3.9%
FIG 1.7
Proportion spent 2012 to 2016 on contracted-out home improvements by households, by incomeSource: ONS Family Spending
Highest 20%
Second 20%
Third 20%
Fourth 20%
Lowest 20%
CONTINUED
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CONTINUED… The changing drivers of home improvement
We tested this nationally and regionally. If we look
nationally at the urban-rural split of private homes
there doesn’t seem to be much difference. But if
we look within regions, we see different patterns
emerging. Obviously leaving out London, for many
regions it seems home owners in local authorities
with a higher rural population have a higher tendency
to submit home improvement planning applications
than more urban areas.
The relationship is particularly strong in the Midlands,
where those living in more rural settings seem far
more favourable to home improvement. The same
is true of Yorkshire and Humberside and to a lesser
degree the South West.
In Eastern England and the North East there is only a
marginal difference between urban and rural settings.
Age profileCan you look at the age profile of an area and judge
whether it’s prime for home improvement work? The
answer is not straightforward, but there are clues.
The Office for National Statistics produce family
expenditure figures that show how much different
households spend on home improvement. Fig. 1.10,
unsurprisingly, shows it’s those between 30 and
retirement. It also shows how the pattern is shifting
over time with the Saga generation increasingly
spending more, while those under 50 are spending less.
In 2005, before the recession, the bigger spenders
were the 30 to 50 year-olds. That’s changed and
seems to be continuing to change. Those aged
between 50 and retirement are now the big spenders
on home improvement.
We must remember that the shift in the level of home
ownership across the age groups will be a factor
in this as we increasingly see an ageing profile of
home owners.
KidsDo families with kids spend more on home
improvement? Well a quick look at Fig. 1.11 suggests
they do. It shows the average annual spend recorded
by the Family Spending Survey over two five-year
periods. Those households with kids do appear to
have been spending more. And having a child may
well prove a prompt for home improvement, if the aim
is to expand the available space.
But it would seem, by comparing the spending
from 2012 to 2016 with that of 2007 to 2011, that
households with children are spending less while
other households are spending more. This may be
that home ownership is increasingly dominated by
older and retired owners, who may have long since
seen their children leave home.
But are you more likely to see home improvement
in areas where there are more homes with kids?
That’s a very different question and oddly the answer
seems to be no. That is, if we place any store by
the modest positive correlation, a suggestion of a
greater likelihood of home improvement planning
applications in a local authority where there is a
higher proportion of homes with no kids.
That relationship seems to hold in all regions of the
UK with the exception of the East of England.
0 5 10 15 20 25 30
75 or over
65 to 74
50 to 64
30 to 49
Under 30
Average weekly spend (£)
2012 to 20162007 to 2011
FIG 1.10
Changing pattern of spending on contracted-out home improvement work by ageSource: ONS Family Spending
0 500 1,000 1,500 2,000
Retired one person
Retired two adults
Non-retired one person
One adult with children
Two adults with children
Three+ adults with children
Three+ adults no children
Non-retired two adults
Average annual spend (£)
2012 to 20162007 to 2011
FIG 1.11
Average annual spend (£) by household typeSource: ONS Family Spending
In 2005, before the recession, the bigger spenders were the 30 to 50 year-olds. That’s changed and seems to be continuing to change
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The dominance of London districts in the home
improvement league table has waned. Yes,
Kensington & Chelsea and Westminster still sat atop
the 2016 table of local authorities. But where there
were 11 London districts in the table last year, that
number has fallen to eight.
The continued solid performance of the South East
means it is still as well represented as a year ago, but
the growth of home improvement activity in East of
England has seen its boroughs making their way up
the table.
The most notable climber is Cambridge, which along
with South Northamptonshire can also claim to be
the most northerly district to feature in this year’s top
25 home improvers table.
With 6.5 planning applications for each 100 privately-
owned homes, Cambridge only narrowly misses out
on ousting Westminster for the number two spot. Two
years ago it only just squeezed into the top 70.
There are common themes that run through areas
where planning applications are more common.
Income and wealth are clearly two. This is reflected
then in areas where house prices are high and
certainly we should expect an upswing in home
improvement in neighbourhoods where house prices
are rising.
We also see on our measure of home improvement
a tendency for the more rural areas to perform
better, especially those in picturesque locations.
This, to some extent, reflects the mobility of wealth
as a proportion of the equity-rich older generations
downsize and migrate to seek their rural idyll. So
places where older folk are more present may also
provide a clue to where home improvement activity is
more concentrated.
These factors, discussed in further detail elsewhere
in the report, are seen in various mixes within the
districts at the top of the list and their flip side in
those at the bottom. What makes Cambridge and its
growth particularly interesting is how rapidly it has
shot towards the top of the table. Meanwhile, it’s most
likely comparator, Oxford, while still enjoying high
levels of activity has slipped down the table.
Cambridge appears to be the epitome of an “improve
not move” location. After a rapid surge in prices,
sales in the city have fallen back sharply while home
improvement has rocketed. It is hard to be certain,
but there is more than a suspicion that with a tight
housing supply and bursting demand, those who
have had a place in Cambridge but now wish to trade
up are finding it financially and emotionally better to
improve than move.
It seems remarkable that Cambridge, which didn’t
make that top 10 in the East of England two years
ago, has seen it home improvement activity more
than double and now, outside of Westminster and
Kensington & Chelsea in London,
has the highest ratio of home
improvement planning
applications to private
homes of any borough
in Britain.
Looking more widely
at the East of England
the growth of home
improvement applications
was down to more than
just the Cambridge effect.
Among many other districts in
the region to see solid growth were
those to the north of London. St Albans
and Hertsmere further secured their
spots in the table and formed with a new
entrant to the table, Three Rivers, an
area of expanding home improvement
encircling Watford.
These are no doubt benefiting
from the spread of the home
improvement boom from central
London to the outer London boroughs
and beyond.
The picture in the South East
clearly echoes this effect,
DISTRICT OVERVIEW…
Which districts top the national table?
It seems remarkable that Cambridge, which didn’t make that top 10 in the East of England two years ago, has seen it home improvement activity more than double
CONTINUED
★
▼
We also see on our measure of home improvement a tendency
for the more rural areas to perform better, especially those in
picturesque locations
REMAINS TOP
Kensington & Chelsea
However, where there were 11 London districts in the
table last year, that number has fallen to eight
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West Midlands
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Districts comparison
CONTINUED… Which districts top the national table?
with the more affluent commuter towns dominating
the top and increasingly the slightly less affluent
gaining ground.
Outside the three dominant greater south eastern
regions, there are only two spots in the table, one for
the South West – The Cotswolds – and one for the
East Midlands – South Northamptonshire.
The South West had previously been represented
with a couple of districts in the picturesque
retirement and holiday hotspots of Devon. Now the
focus is on what might be seen as more brash money.
The Cotswolds is an attractive spot for the super-
monied classes and this shows up the growing level of
home improvement – in a way chiming with the surge
seen in central London.
As for the East Midlands and the Midlands in general,
the rural aspect tends to be more to the fore in finding
the hotter home improvement spots. Income, wealth
and house prices clearly matter greatly too, so South
Northampton fits that profile extremely well so it
should be no surprise it finds itself a spot in the top
25. It also benefits from being the most southerly
district in the East Midlands, butting up against some
affluent areas of the South East.
But even for those districts to the north outside
the top 25, where less tends to be spent upgrading
homes, the picture is far from bleak. Fig. 2.1 shows the
steady rise in the number of applications for home
improvement continued in 2016.
But there is no getting away from the fact that at the
lower end of the league table, ironically perhaps,
stand many of the areas where the housing stock is in
greatest need of improvement. It is the poorer more
urban areas that tend to occupy the bottom spots
on the table. This is no surprise given that house
prices are one driver of home improvement planning
applications, income another, while a rural setting
tends to be more favourable than an urban one
outside of London.
Blackpool remains rooted to the bottom with Stoke
lifting up to third from bottom. But increasingly there
are Scottish districts dotting the bottom of the listing.
The chances of a planning application being
submitted for any given private house in the
bottom five districts in the list is about one tenth
of those at the top. This gap may have closed a
little over the years, but it gives a good guide to the
disparity between regions when it comes to home
improvement.
But there are good news stories emerging from the
lower ranks of the home improver table. Hull not long
ago was sat among the lowest 10 districts for home
improvement planning applications per 110 private
homes. In the year it takes the mantle of UK City of
Culture it can say it no longer features in the bottom
25. It may well still be in the bottom tenth, but only
just, and signs are that home improvement is on the
rise in the city.
There are some other encouraging signs. The latest
Office for National Statistics Family Spending survey
suggests that the gap in spending by households on
altering and improving their homes is narrowing as
the pressure on incomes has eased in recent years.
Proportionately it is the lower spending regions such
as the North East that have seen the greatest rise
if we compare the 2015 and 2016 total spend per
household with that of 2013 and 2014.
That said, the spread spending on home improvements
and alterations is far from even. The average spend in
London is about three and a half times that spent by the
average household in the North East.
CLICK TO VIEWTop & bottom 25 districts
TOP25
CONTINUED
As for the East Midlands and the Midlands in general, the rural aspect
tends to be more to the fore in finding the hotter home improvement spots
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
Mon
thly
hom
e-im
prov
er a
pplic
atio
ns
Dec08
Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Applications 12 month moving average
FIG 2.1
Monthly home-improver planning applications and 12 month moving averageSource: Barbour ABI
STILL RISES
Yearly moving average
The 12 month moving average shows that
there is still a steady rise in the number of
applications
The chances of a planning application being submitted for any given private house in the bottom five districts in the list is about one tenth of those at the top
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Districts comparison
Districts for home improvementNumber of home improvement applications for every 100 private homes.
Districts for home improvementNumber of home improvement applications for every 100 private homes.
Rank District Region 2014 2015 2016 Growth (%)*
25 Sunderland NE 0.9 0.8 0.8 -9
24 Hyndburn NW 0.8 0.7 0.8 -16
23 North East Lincolnshire YH 0.9 0.9 0.8 0
22 Wigan NW 0.7 0.7 0.8 5
21 Rhondda WA 0.9 0.8 0.8 2
20 Erewash EM 1.0 1.0 0.8 11
19 Knowsley NW 0.9 0.8 0.8 -2
18 Inverclyde SC 0.7 0.7 0.8 -4
17 Wolverhampton WM 0.6 0.8 0.8 28
16 Barnsley YH 0.7 0.7 0.7 -2
15 Halton NW 0.9 0.8 0.7 1
14 Wirral NW 0.8 0.8 0.7 7
13 Burnley NW 0.6 0.8 0.7 37
12 North Ayrshire SC 0.7 0.6 0.7 -11
11 West Lothian SC 0.8 0.7 0.7 -5
10 Falkirk SC 0.8 0.7 0.7 -6
9 Copeland NW 0.8 0.8 0.7 0
8 Redditch WM 0.3 0.5 0.7 41
7 Dundee SC 0.6 0.6 0.7 3
6 Renfrewshire SC 0.6 0.7 0.6 15
5 North Lanarkshire SC 0.6 0.7 0.6 6
4 Glasgow SC 0.6 0.6 0.6 3
3 Stoke on Trent WM 0.6 0.5 0.6 -18
2 West Dunbartonshire SC 0.6 0.5 0.5 -18
★ Blackpool NW 0.4 0.4 0.4 -1
*2016 compared with average of 2014 and 2015 Source: Barbour ABI, ONS
Rank District Region 2014 2015 2016 Growth (%)*
★ Kensington and Chelsea LN 7.5 7.3 6.8 -8
2 Westminster LN 6.8 6.2 6.5 0
3 Cambridge EE 2.8 5.8 6.5 51
4 South Bucks SE 5.6 6.0 6.1 4
5 Uttlesford EE 5.8 6.1 5.6 -5
6 St Albans EE 4.7 5.2 5.6 12
7 Richmond upon Thames LN 5.7 5.9 5.5 -5
8 South Northamptonshire EM 4.3 5.1 5.5 16
9 Elmbridge SE 5.5 5.7 5.4 -3
10 Sevenoaks SE 5.6 5.6 5.4 -3
11 Hammersmith and Fulham LN 6.3 6.1 5.3 -13
12 Guildford SE 4.6 5.0 5.1 7
13 Three Rivers EE 3.9 4.2 5.0 23
14 Barnet LN 4.2 4.7 4.9 10
15 Hertsmere EE 3.8 4.3 4.9 19
16 Harrow LN 4.0 4.9 4.7 6
17 Chiltern SE 4.2 4.7 4.7 7
18 Chichester SE 4.5 5.1 4.7 -3
19 Redbridge LN 3.9 4.3 4.7 14
20 Cotswold SW 2.8 3.8 4.5 37
21 Hounslow LN 4.1 4.5 4.5 5
22 Windsor and Maidenhead SE 4.3 4.2 4.5 7
23 Hart SE 3.8 4.0 4.4 14
24 Brentwood EE 3.5 3.9 4.4 19
25 Tunbridge Wells SE 4.0 4.5 4.4 4
*2016 compared with average of 2014 and 2015 Source: Barbour ABI, ONS
BOTTOM
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Districts comparison
The story of home improvement in Britain is largely a story
of the housing market. More than most other nations, Britain
preserves its ageing homes. Its housing stock is arguably
the oldest in Europe. We have tended to invest more in
repairing, modifying, modernising and altering homes than
we do in knocking old homes down and building new ones.
Our love affair with repair, maintenance and improvement
of housing really took off in the late 1970s and since 1980
construction firms have earned more doing up existing
homes than building new ones. And that obviously doesn’t
include the huge sums spent and much effort expended by
DIY enthusiasts.
So not surprisingly when we look to compare home
improvement activity regionally within Britain, we tend to
turn first to London. It dominates the housing
market and so it dominates the home
improver market.
And what do we see? A more jittery housing
market and similarly a home improvement
market looking far less gung-ho. This is
especially true in the once scorching hot
central London boroughs. Growth in planning
applications for home improvement in London
dipped below the national average.
But despite signs of cooling over the past two years,
Kensington & Chelsea and Westminster still dominate
the home improver league table. Activity has shifted
towards the outer boroughs where strong rises in
house prices have made home improvement a
more attractive investment.
Scotland aside, the rise in home improvement activity
continued to spread throughout Britain in 2016. There was
solid growth in home improvement planning activity in the
Midlands, where the more affluent rural areas remain the
hotter spots, and in Wales.
In Yorkshire & Humber and the North West there was
again solid no-fuss growth. The North East however
was again the poor cousin in the North with growth, but
underwhelming growth.
When all said and done, it was the East of England which
enjoyed the greatest growth, with home improvement
planning applications up 14% compared with the average
over the previous two years and 10% comparing 2016 with
2015. Its star performer was Cambridge, which has
rocketed to number three in the national table of home
improvement districts.
In many ways this is a spill over from London as
the money spreads out, although Cambridge has
its own merits if looked at from a home-improver
point of view – high and rising prices, restricted
stock and a very strong local economy.
Despite being one of the prime locations for
equity-rich migrants from London and the
South East, the South West saw less of
the national growth than most in 2016.
But its profile does suggest that
while it remains a solid spot
for home improvement it is a
stodgier market, less prone to
both surges and falls.
REGION OVERVIEW…
How do the regions and countries of Britain compare?
Rank Region/Country 2014 2015 2016 Growth (%)*
★ London 3.5 3.8 3.8 4
2 South East 2.6 2.7 2.8 6
3 East of England 2.2 2.5 2.7 14
4 South West 2.0 2.0 2.1 4
5 East Midlands 1.4 1.5 1.6 7
6 Yorkshire & Humber 1.3 1.4 1.5 6
7 West Midlands 1.2 1.4 1.4 9
8 North West 1.2 1.2 1.3 6
9 Wales 1.1 1.2 1.2 7
10 North East 1.1 1.1 1.1 3
11 Scotland 1.1 1.1 1.1 -4
England 2.0 2.1 2.2 6
Great Britain 1.9 2.0 2.0 6
*2016 compared with average of 2014 and 2015 Source: Barbour ABI, ONS
Home improvement across Britain’s regions and countriesNumber of home improvement applications for every 100 private homes.
14
STRENGTH INCommuter towns
The more affluent commuter towns tend to enjoy the lion’s share of home improvement
GROWTH INEast of England
Applications increased 14% in the East of England, compared with the
average over the previous 2 years
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Region comparison
Cambridge took the top spot in the Home Improvement
league table for East of England in 2016 after a surge in
home improvement applications for a second year. It now
ranks third in the national table with more than six home
improvement applications submitted for each hundred
private homes in the borough.
Uttlesford, the north Essex local authority that takes in
Saffron Walden, Stansted, Thaxted and Great Dunmow,
continues to perform strongly and holds a top five spot in
the national table. St Albans and Hertsmere also secured
their spots in the table and formed, with Three Rivers, an
area of expanding home improvement encircling Watford.
Indeed other East of England local authorities have also
shown strongly in home improvement, with the region as
a whole experiencing the biggest annual growth in home
improvement applications submitted, up almost 10%
compared with a national average of just over 3%. This
brought Three Rivers and Brentwood into the national top
25 home improvers table.
But the big story is Cambridge which appears to be
the epitome of an “improve not move” location. After a
rapid surge in prices, sales in the city have fallen back
sharply while home improvement has rocketed. Outside
of Westminster and Kensington & Chelsea in London,
Cambridge has the highest ratio of home improvement
planning applications to home sales of any borough.
But while Cambridge provides icing on the cake for local
builders, the region continues to provide rich pickings.
There was a 14% jump in 2016 in home improvement
planning applications in the East of England compared with
the average over the previous two years.
Overall there were more than 58,500 applications made in the
region, which comes in at about 2.7 for every 100 privately-
owned homes, ranking the region third after London and the
South East and well above the British average of 2.0.
In the region the price of houses seems to be one of the best
guides to where home improvement activity is most likely
and despite having a substantial rural population, there
appears to be little difference between the more rural and
less rural districts.
When it comes to the choice of improve or move the balance
seems to have been tipping towards improve. In 2014 there
were 41 home improvement planning applications for every
100 home sales. That rose to 46 in 2015 and to 51 in 2016.
Cambridge is the stand out district in the region with 1.4 home
improvement planning applications for every sale in 2016.
The Office for National Statistics Family Spending survey
suggests that households in the East of England on average
spent across 2015 and 2016 almost £1,350 a year altering
and improving their homes. That totals to about £3.4 billion
spent in the region.
Great Yarmouth continues to hold up the table, with
applications for home improvement failing to rise over the
past five years. Harlow, Norwich, Ipswich and Peterborough
took the four other places in the bottom five.
FOCUS ON…
East of England
East of England districts for home improvementNumber of home improvement applications for every 100 private homes.
Rank District 2014 2015 2016 Growth (%)*
★ Cambridge 2.8 5.8 6.5 51
2 Uttlesford 5.8 6.1 5.6 -5
3 St Albans 4.7 5.2 5.6 12
4 Three Rivers 3.9 4.2 5.0 23
5 Hertsmere 3.8 4.3 4.9 19
6 Brentwood 3.5 3.9 4.4 19
7 Welwyn Hatfield 3.7 3.5 4.2 15
8 Epping Forest 3.6 3.9 4.2 11
9 East Hertfordshire 3.1 3.2 3.7 14
10 South Cambridgeshire 2.7 3.0 3.5 23
*2016 compared with average of 2014 and 2015 Source: Barbour ABI, ONS
51made in the region for
home improvement
MORE THAN
APPLICATIONS
IS ON THE UP
58,500
Cambridge
leaping from well outside the national top 50 districts
for home improvement in 2014 to 3rd in 2016
TOP10
Households in the region on average spent across 2015 and 2016 £1,350 a year altering
and improving their homes
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East of England
South Northamptonshire, centred on Towcester, continues
to hold its place at the top of the East Midlands home
improvement league, as planning applications in the
borough continued on an upward path in 2015.
There were five and a half home improvement applications
submitted in the borough for every 100 private homes in
2016, close to double the number in 2013.
That the borough tops the league should be no surprise.
Its healthy stock of wealthy executive types and flourishing
families and continued strong earnings growth will have
helped drive home improvements. It is the only East
Midlands region to feature in the national top 25 listing.
That said, strong earnings growth also supported an
expansion in home improvement applications in Rutland
in 2016. Its relatively high level of home improvement
application will also have been supported by its large stock
of affluent greys, who continue to be big spenders, if not
increasing spenders, when it comes to doing up their homes.
Over the past two years home improvement activity has
increased, with the more affluent districts boosting the
overall numbers of planning applications in the region
to almost 27,000, with a more gentle rise in 2016 of 4% in
applications after an 8% rise in 2015.
Despite increasing numbers of planning applications, with
an average of 1.6 made for every 100 private homes, the East
Midlands remains below the average across Britain of 2.0.
Looking at what drives home improvement, the evidence
from Barbour ABI research seems to point to three main
factors in the region. Income seems to be the big driver. But
where the proportion of homeowners over 50 is high we are
also likely to see more applications, suggesting that equity
plays a strong role too. And we also see more applications in
rural locations than in the larger urban areas.
Certainly the pattern of more rural boroughs at the top of
the pile in the region is reflected with the urban boroughs
of Mansfield, Erewash and Chesterfield taking the bottom
three places in the regional table this year.
When it comes to the choice of improve or move there are
few signs that the improve option is gaining ground in the
region. There were about 30 planning applications for every
100 sales in the East Midlands in 2016, a similar level to that in
the previous two years. That said in South Northamptonshire
there was broadly one home improvement planning
application for every sale in the borough in 2016.
Looking at the amount spent by homeowners in the
region, the Office for National Statistics Family Spending
survey suggests they spent an average of about £2.6 billion
annually on home improvements over 2015 and 2016. This
averages out at almost £1,100 a year per household on
altering and improving their homes.
FOCUS ON…
East Midlands
Rank District 2014 2015 2016 Growth (%)*
★ South Northamptonshire 4.3 5.1 5.5 16
2 Rutland 3.9 3.6 4.0 6
3 Harborough 2.6 2.9 3.0 9
4 Rushcliffe 2.5 2.6 2.9 16
5 East Northamptonshire 2.2 2.3 2.4 8
6 Daventry 2.0 2.0 2.2 8
7 Charnwood 1.8 1.7 1.9 12
8 South Kesteven 1.8 1.9 1.9 5
9 Derbyshire Dales 1.7 1.6 1.9 13
10 North East Derbyshire 1.6 1.9 1.8 5
*2016 compared with average of 2014 and 2015 Source: Barbour ABI, ONS
East Midlands districts for home improvementNumber of home improvement applications for every 100 private homes.
16
16
TOP10
Rural areas tend to be much stronger for home improvement applications than larger urban areas in the region
DOMINANTION IN
RISE IN 20168%
rural locations
In 2016 applications rose 4% to 26,800 following an 8%
rise in 2015
Households in the region on average spent across 2015 and 2016 almost £1,100 a year altering and improving their homes
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East Midlands
London’s super-affluent boroughs of Kensington & Chelsea
and Westminster continued to hold the top places in the
Barbour ABI/FMB rankings for home improvement planning
applications in 2016.
But their grip is slipping as growth in the number of planning
applications in these boroughs has stalled in recent years.
But despite the huge amount of work already done over
recent years the planners are still receiving about seven
home improvement applications a year for every 100 private
homes in these table-topping boroughs.
Across London as a whole the home improvement bug
appears to have calmed down and there was a smaller
increase in 2016 in the number applications than in any
other English region or in Wales.
The real growth in applications in the capital is tending
to come from previously less fashionable, less central
boroughs, such as Barking & Dagenham, Waltham Forest
and Newham, broadly to the outer east of London. This
expected shift mirrors the earlier expansion in home
improvement in the outer London borough of Barnet,
Harrow, Redbridge, Hounslow and Brent, which now feature
firmly in the region’s top 10.
Despite more sluggish growth, there was still a small rise to
more than 100,000 in the number of home improvement
applications submitted to London planning authorities
in 2016, which represents about a quarter of all those
submitted across England.
The driver behind this continued upward trend in home
improvement in London is not surprising. With land values
booming the economics of spending on enhancing and
expanding an existing home can be compelling. And there is
no shortage of people with sufficient wealth, income or both
to invest. Meanwhile, the recent easing in growth reflects the
general softening of the housing market in the capital of late.
When it comes to the balance between home improvement
and home movement, the evidence over the past few years
has weighed more towards improve in London. In 2013 there
were 67 home improvement planning applications for every
home sale. That rose to 72 in 2014, 82 in 2015 and to 86 in
2016. At the vanguard, naturally, are Kensington & Chelsea
and Westminster where over the past two years there were
almost two planning applications for every sale.
The Office for National Statistics Family Spending survey
suggests that the total spend by households annually on
home improvements averaged £7.4 billion over 2015 and
2016. This means an annual average spend of about £2,500
a year per household, if we include those renting, on altering
and improving their homes.
FOCUS ON…
London
Rank District 2014 2015 2016 Growth (%)*
★ Kensington & Chelsea 7.5 7.3 6.8 -8
2 Westminster 6.8 6.2 6.5 0
3 Richmond upon Thames 5.7 5.9 5.5 -5
4 Hammersmith & Fulham 6.3 6.1 5.3 -13
5 Barnet 4.2 4.7 4.9 10
6 Harrow 4.0 4.9 4.7 6
7 Redbridge 3.9 4.3 4.7 14
8 Hounslow 4.1 4.5 4.5 5
9 Brent 4.0 4.3 4.1 0
10 Kingston upon Thames 3.8 4.4 4.1 -1
*2016 compared with average of 2014 and 2015 Source: Barbour ABI, ONS
London districts for home improvementNumber of home improvement applications for every 100 private homes.
14
TOP10
submitted to London planning authorities last year for home improvements, almost a quarter of those submitted in England
MORE THAN
APPLICATIONS100,000
INCREASE
Outer boroughs
London’s boom in home improvement continues
to spread from the central to the outer
boroughs
Households in the region on average spent across 2015 and 2016 almost £2,500 a year altering and improving their homes
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London
The district of Northumberland once again tops the list of
boroughs in the Barbour ABI home improvement league for
the North East, narrowly pipping Newcastle to the post.
In 2016 the North East region saw 3% growth in the number
of planning applications made for home improvement
compared with the average over the previous two years.
This growth was less than across Britain as a whole putting
the region yet further behind the national average when
it comes to the likelihood of homeowners submitting a
planning application for home improvement.
The average number of planning applications for home
improvements in 2015 across Britain was two for every 100
private homes. Even Northumberland, which top the table
in the North East, only manages 1.5, while Sunderland at the
bottom of the regional table barely saw half that.
Despite the North East tending to have an older age
group than the UK average, there is a strong link across
Britain between the level of home improvements, average
earnings and house prices. This pattern is very evident
currently in determining why the North East sees less home
improvement than the UK average and in determining
where within the North East to expect most home
improvement to happen.
Within the region this pattern broadly holds.
Northumberland and Newcastle, the two highest ranking
districts are both at the top end for average earnings in the
region and are among the districts with the highest average
house prices. That said, the official data does suggest that
earning in Northumberland slid in 2016, although it may well
also benefit from being a more rural area, which tends to
correlate with more home improvement.
At the bottom of the table we still see Gateshead and
Sunderland where pay growth and general prosperity
remain hard fought.
The balance between home improvement planning
applications and home sales over the past few years has
generally been downward, suggesting little sign of any great
shift among those moving up the housing ladder to consider
improving rather than moving. Across the region there were
less than 26 applications for every 100 home sales.
On a positive note, while the level of overall spending on
home improvements in the region is still well below the
national average there has been an increase to almost
£900 million spent by the average household on home
improvements annually across 2015 and 2016, according
to the Office of National Statistics Family Spending survey.
This suggests nearing £1 billion a year was spent across the
North East by households altering and improving homes.
FOCUS ON…
North East
Rank District 2014 2015 2016 Growth (%)*
★ Northumberland 1.5 1.5 1.5 2
2 Newcastle upon Tyne 1.3 1.3 1.5 11
3 North Tyneside 1.2 1.3 1.4 7
4 South Tyneside 1.1 1.2 1.3 9
5 Darlington 1.1 1.0 1.1 5
6 Stockton on Tees 1.1 1.1 1.1 -4
7 Durham 0.9 1.0 1.0 8
8 Middlesbrough 1.0 0.9 1.0 1
9 Redcar and Cleveland 0.9 0.9 0.9 2
10 Hartlepool 1.1 1.0 0.9 -9
*2016 compared with average of 2014 and 2015 Source: Barbour ABI, ONS
North East districts for home improvementNumber of home improvement applications for every 100 private homes.
11
TOP10
determining where home improvement happens in the
North East
NATIONAL AVERAGE
ARE A BIG FACTOR
Further behind
Average earnings & house prices
Despite a rise in home improvement planning applications the
North East still fell further behind the national average in 2016
Households in the region on average spent across 2015 and 2016 almost £900 a year altering and improving their homes
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East Midlands
London
North West
Scotland
South East
South West
Wales
Yorkshire & Humber
West Midlands
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North East
Ribble Valley has regained its place at the top of the North
West’s league table for home improvement having ceded
its title to the Trafford district of Greater Manchester for the
previous two years. The borough saw a leap in applications
in 2016 after a two year slump in the numbers submitted.
During the recession it tended to be the more rural and
picturesque districts where home improvement flourished.
This still tends to hold for the region today although far less
firmly, with the emphasis for home improvements having
shifted away from the rural idylls, such as Ribble Valley
and Eden.
Boroughs where homeowners are more likely to submit
planning applications for home improvements do tend to be
those where average incomes are higher. This holds for the
North West, although the relationship is perhaps less strong
than elsewhere in Britain.
Ribble Valley ticks that box with higher average earnings
than in most other North West boroughs. Indeed all but
Eden that appear in the top 10 table appear towards the top
of the average earnings table, with Trafford at the top.
So while the pretty retirement and second-home hotspots
still rank high in the home improvement tables, the more
economically potent boroughs are solid spots for home
improvement. While they may not feature in the region’s
top 10, the boroughs that have seen the fastest growth in
applications for home improvement over the past year are
Preston, Burnley and Salford.
Blackpool continues to prop up the bottom of the list of
districts for home improvements in the North West and it
continues to be where we find the lowest average earnings
in the region. In Blackpool last year there was just one
application made for home improvements for every 250
private homes. That was the lowest rate in Britain.
The balance between planning applications for improvement
and home sales has been fairly static for the past three years
as both have risen. The level in 2016 was about 27 applications
for each 100 home sales. But there has been a rise in some of
the hotter markets such as Ribble Valley and Lancaster.
Across the North West in 2016 the average number of home
improvement applications received for every 100 private
homes was a shade above 1.3, well below the average of
2.0 across Britain. The total number of applications for the
region was just over 33,000 in 2016.
In terms of average spend per household, although still below
the national average, the figures from the Office for National
Statistics Family Spending survey suggest an improvement.
They suggest the average household in 2015 and 2016,
including renters, spent almost £1,100 annually on home
improvements. That makes the estimated market for home
improvements in the North West worth about £3.2 billion.
FOCUS ON…
North West
Rank District 2014 2015 2016 Growth (%)*
★ Ribble Valley 1.8 1.9 2.3 24
2 Trafford 2.0 2.1 2.2 5
3 Cheshire West and Chester 1.9 1.9 1.9 0
4 Cheshire East 1.8 1.8 1.9 6
5 West Lancashire 1.9 1.7 1.9 5
6 Warrington 1.4 1.7 1.8 18
7 Lancaster 1.4 1.6 1.8 22
8 Stockport 1.5 1.7 1.7 12
9 Eden 1.8 1.9 1.7 -6
10 Fylde 1.3 1.5 1.5 10
*2016 compared with average of 2014 and 2015 Source: Barbour ABI, ONS
North West districts for home improvementNumber of home improvement applications for every 100 private homes.
24
TOP10
made in the region for home improvement
MORE THAN
APPLICATIONS33,000
Despite the emphasis for home improvement in the North West having shifted a bit from the more
picturesque boroughs, solid average earnings helped Ribble Valley regain its top spot
Households in the region on average spent across 2015 and 2016 almost £1,100 a year altering and improving their homes
REGAINS ITS TOP SPOTRibble Valley
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North West
East Lothian continued to top the Scottish home
improvement capital league table for 2016, with the number
of planning applications rising for a fifth consecutive year.
However, even in this district, which butts up against the
nation’s capital, the proportion of homeowners submitting
planning applications for home improvements only just
touches the average for Britain.
At just over one application submitted for each 100 private
homes in the nation, Scotland now lies below Wales and
every English region on this count and was the only part of
Britain that saw the number of home improvement planning
applications fall in 2016.
Certainly in terms of planning applications the Scottish home
improvement market does still appear to be flagging relative
to the rest of Britain. There were rises in the number of
planning applications submitted in each English region and
in Wales, whileScotland fell for the second year in a row in
2016. Although, as with Wales, it should be borne in mind that
devolution of powers means that direct comparisons with
English regions are not necessarily always straightforward.
However the Office of National Statistics Family Spending
survey does suggest that overall spending on home
improvements in Scotland is running at an improved level
compared to a very bleak 2013. The figures suggest that
households spent on average about £920 annually across
2015 and 2016. The means the total annual spend across
the nation on home improvements comes in at £1.9 billion.
So it may be that there are fewer but more ambitious home
improvement projects.
The overall number of projects was more than 21,000 in 2016,
but this is below the 22,000 level in 2014. But over the past
year the fall can be more than accounted for in the decline
in applications within Aberdeen City and Aberdeenshire
and the continued fall away in applications in Dumfries and
Galloway. Subtract these three local authorities and the
picture is one of a very gentle rise over the past five years.
And there are of course bright spots in the figures. As well
as growth in East Lothian there were solid rises in home
improvement applications for Fife and Perth & Kinross, both
now in the top five of the 2016 league table.
Generally speaking a strong guide to where home
improvements are most likely is where average earnings
are high. This is unsurprising given that more than half of
the spending by households on home improvement comes
from households in the top 20% on the income scale. But
the relationship seems to be less obvious in Scotland.
Across much of Britain home improvement activity tends
to be more prevalent in less urban areas. This is very true of
Scotland. So Glasgow and West Dunbartonshire remaining
stuck to the bottom of the home improvement table in
Scotland is, perhaps, to be expected, despite a moderately
strong rise in applications in Glasgow over the past two years.
FOCUS ON…
Scotland
Rank District 2014 2015 2016 Growth (%)*
★ East Lothian 1.8 2.0 2.0 6
2 Argyll and Bute 2.1 1.9 1.9 -6
3 East Renfrewshire 1.6 1.7 1.7 2
4 Perth and Kinross 1.4 1.4 1.5 7
5 Fife 1.2 1.3 1.4 14
6 Edinburgh 1.4 1.5 1.4 -2
7 East Dunbartonshire 1.3 1.4 1.4 1
8 Scottish Borders 1.3 1.5 1.4 -1
9 Aberdeenshire 1.7 1.7 1.4 -19
10 Highland 1.4 1.4 1.3 -5
*2016 compared with average of 2014 and 2015 Source: Barbour ABI, ONS
Scotland districts for home improvementNumber of home improvement applications for every 100 private homes.
14
TOP10
Home improvement tends to be more prevalent in less
urban areas in Scotland
IN APPLICATIONS
STRONGER IN
Decline
Less urban areas
Combined falls in Aberdeen City, Aberdeenshire and Dumfries &
Galloway more than account for the national decline in home improvement
applications in Scotland
Scottish households on average spent across 2015 and 2016 almost £920 a year altering and improving their homes
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Scotland
Affluent Home Counties commuter towns still dominate the
home improvement market in the South East and sit atop
the latest regional table, with South Bucks again taking the
top spot ahead of Elmbridge and Sevenoaks.
Key factors that promote planning applications for home
improvement tend to be earnings, wealth and rural and
semi-rural settings. Such areas abound in the Home
Counties, so it’s not surprising South East boroughs have a
strong showing in the national home improver league.
With Sevenoaks, Guildford, Chichester, Windsor &
Maidenhead and Tunbridge Wells all in the top 10 it is fairly
easy to imagine what drives home improvement in the
region and where it is likely to be found. Find leafy suburbs
and quaint town centres with prosperous residents in
reasonable commuting time of London and the chances are
there will be rich pickings for local builders specialising in
residential enhancements.
More than in any other region the relationship between
average earnings in a borough and the level of home
improvement applications holds strong in the South East.
While wealth clearly plays a strong hand, the balance between
wealth and earnings as a driver of home improvement
activity has shifted slightly over the past few years with more
emphasis appearing to be on earnings. During the recession
wealth had been a bulwark supporting home improvement
against the effects of insecurity over income.
There are signs in the region that households may well be
increasingly choosing to improve rather than move. In 2014
there were 47 home improvement planning applications for
every 100 home sales. That rose to 52 in 2015 and in 2016
stood at 54 as planning applications have risen while sales
have eased. In many of the South East’s leafy suburban
districts there was at least one planning application for
every sale in 2016.
Meanwhile, at the bottom of the list of boroughs in the
South East for home improvement come Portsmouth,
Southampton and Gosport, more urbanised districts with
some of the lowest average annual earnings. Here these
local authorities received about one application for home
improvement for every 100 private homes, compared with
South Bucks which receives over six.
Measured on the number of applications for home
improvements made per 100 private homes the South East
at 2.8 comes well above the 2.0 average for Britain, and
second only to London. Across the region there were more
than 92,000 applications in 2016.
The Office for National Statistics Family Spending survey
suggests that households across the region spent about
£5.3 billion on home improvements annually across 2015
and 2016. This means the average household, including
renters, spends about £1,500 a year per household on
altering and improving their home.
FOCUS ON…
South East
Rank District 2014 2015 2016 Growth (%)*
★ South Bucks 5.6 6.0 6.1 4
2 Elmbridge 5.5 5.7 5.4 -3
3 Sevenoaks 5.6 5.6 5.4 -3
4 Guildford 4.6 5.0 5.1 7
5 Chiltern 4.2 4.7 4.7 7
6 Chichester 4.5 5.1 4.7 -3
7 Windsor and Maidenhead 4.3 4.2 4.5 7
8 Hart 3.8 4.0 4.4 14
9 Tunbridge Wells 4.0 4.5 4.4 4
10 East Hampshire 3.6 4.5 4.0 -1
*2016 compared with average of 2014 and 2015 Source: Barbour ABI, ONS
South East districts for home improvementNumber of home improvement applications for every 100 private homes.
14
TOP10
made in the region for home improvement
MORE THAN
APPLICATIONS92,000
The relationship between average
earnings and home improvement
applications in a district is particularly strong in
the South East
ARE KEY
Average earnings
Households in the region on average spent across 2015 and 2016 almost £1,500 a year altering and improving their homes
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South East
Cotswold District having taken the title of home
improvement capital of the South West in 2015 has
cemented its position with a substantial increase in
planning applications in 2016.
The Cotswolds ticks most of the boxes you’d expect
for an area where home improvement is rampant.
Average earnings are high, wealthy folk are moving in, it’s
picturesque and suitably rural and house prices are rising.
This has fuelled a rise of two thirds in the number of
planning applications submitted in the borough for home
improvements between 2013 and 2016 and projected the
district into the national table at number 20.
The picturesque districts of the South West had performed
solidly through the recession. While builders elsewhere
suffered across the nation as home owners curbed
spending as the recession bit, those in the South West were
more sheltered as equity-rich downsizers and movers to
the South West spent more freely on home improvement.
But as the economy has turned up it is in districts where
average incomes are higher, rather than where wealth is
more plentiful, that we have seen the greatest uplift in home
improvement planning applications.
That said, North Dorset and South Hams still rank high
among the leading local authorities in the region for home
improvement. Meanwhile, Bath & North East Somerset
and its neighbouring borough of Mendip, both of which
would tick the picturesque box, have been making their way
up the rankings of late with double digit growth in home
improvement planning applications.
When it comes to improve rather than move, for every 100
sales in the region there are about 40 planning applications
for home improvement. This figure has remained fairly
stable over the past four years. And as one might expect
it is highest in the Cotswolds where there were 85 home
improvement applications for each 100 sales in 2016.
While its star has waned relatively, the South West remains
above the GB average for the submission of planning
applications per hundred private homes with a figure of 2.1,
although it has slipped below the average for England, as
London and the rest of the South has seen a surge in activity.
The Office for National Statistics Family Spending survey
suggests that households across the South West region
spent about £2.6 billion on home improvements annually
across 2015 and 2016. In the region the average household
spends about £1,100 a year on altering and improving their
homes and that includes those who rent.
FOCUS ON…
South West
Rank District 2014 2015 2016 Growth (%)*
★ Cotswold 2.8 3.8 4.5 37
2 North Dorset 3.1 3.3 3.2 1
3 South Hams 3.6 3.4 3.2 -8
4 Bath and NE Somerset 2.7 3.0 3.1 10
5 Stroud 3.2 3.1 3.0 -4
6 Mendip 2.5 2.5 2.7 11
7 Cheltenham 2.5 2.5 2.7 9
8 Tewkesbury 2.3 2.6 2.7 9
9 West Dorset 3.0 2.8 2.6 -11
10 Cornwall 2.6 2.5 2.5 -1
*2016 compared with average of 2014 and 2015 Source: Barbour ABI, ONS
South West districts for home improvementNumber of home improvement applications for every 100 private homes.
37
TOP10
made in the region for home improvement
MORE THAN
APPLICATIONS44,000
STRENGTHENED BYequity-rich downsizers
The South West home improvement market is buoyed by migration of equity-rich downsizers and
movers from London and the South East
Households in the region on average spent across 2015 and 2016 just above £1,100 a year altering and improving their homes, the highest outside London
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South West
The Vale of Glamorgan has steadily made its way back to the
top of the league table for home improvers in Wales with a
solid rise in planning applications in 2016.
But it is a sign of the relative weakness in the Welsh home
improvement market that the two home improvement
planning applications submitted in 2016 for every 100
private homes in the local authority area places the Vale of
Glamorgan no higher than average for British local authorities.
Wales scores above Scotland for home improvement, but
ranks only above the North East when compared with the
English regions. Although, as with Scotland, it should be
borne in mind that devolution of powers means that direct
comparisons with English regions are not necessarily always
straightforward.
The Office for National Statistics Family Spending survey
suggests that households across Wales spent an average
of about £1.3 billion on home improvements a year over
2015 and 2016. So the average Welsh household, when
you include renters as well as homeowners, spends about
£1,000 a year on altering and improving their homes. After
some years of improvement this is getting closer to the
£1,250 UK average.
Last year we pointed to Ceredigion as a Welsh district
well worth keeping an eye on. With the University town
of Aberystwyth its beating heart and a high proportion
of affluent greys in the population, it had been stealthily
moving up the Welsh home improver league.
Well it now sits second in the table after a substantial
increase in the annual number of home improvement
planning applications submitted, tipping last year’s table
topper Monmouthshire into the third spot.
While many of the districts at the top of the table, such
as Vale of Glamorgan, Cardiff and Monmouthshire, are
populated with relatively more affluent households, the
relationship between income and home improvement is
much weaker in Wales than in many other parts of Britain.
However, the link between house prices and the level of
home improvements is strong.
Across Wales there was a solid rise in applications in 2016
of about 7% when compared with the average over the
previous two years. This raised the number of applications
to 14,500. This rise broadly corresponded with a rise in
sales so the balance between home sales and planning
applications for home improvement remain stable at about
30 planning applications for home improvement for each
100 home sales.
FOCUS ON…
Wales
Rank District 2014 2015 2016 Growth (%)*
★ Vale of Glamorgan 1.5 1.6 2.0 27
2 Ceredigion 0.9 1.4 1.7 48
3 Monmouthshire 1.5 1.8 1.6 1
4 Denbighshire 1.4 1.4 1.6 12
5 Cardiff 1.5 1.5 1.5 -3
6 Anglesey 1.6 1.4 1.4 -6
7 Gwynedd 0.9 1.2 1.4 31
8 Swansea 1.1 1.3 1.4 12
9 Powys 1.2 1.2 1.3 11
10 Wrexham 0.8 1.0 1.3 38
*2016 compared with average of 2014 and 2015 Source: Barbour ABI, ONS
Wales districts for home improvementNumber of home improvement applications for every 100 private homes.
48
TOP10
submitted for home improvement in Wales
APPLICATIONS14,500
IS WEAKERLink to income
The link between income and home improvement is much weaker in Wales
than in many other parts of Britain
Households on average spent across 2015 and 2016 almost £1,000 a year altering and improving their homes
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Wales
Stratford-upon-Avon topped the home improvements
league in the West Midlands yet again in 2016. But its
40% surge in the number of planning applications in 2015
inevitably subsided, albeit leaving the level in 2016 still well
up on the 2014 figure.
But the district in terms of home improvement applications
still stands head and shoulders above Shropshire and
Solihull which vied for second place. This is probably no
surprise. In today’s housing market, major investment in
home improvement tends to be more prevalent, among the
wealthy, among the high earners, among the well-to-do older
homeowners, in places of beauty and in less urban settings.
Homes in such districts tend to be well above average and
if planning is tight for new homes or the desirable stock is
limited, that adds to the incentive to upgrade existing homes.
In the West Midlands Stratford-upon-Avon ticks all the boxes
and a few more with its cultural and historical heritage.
The general tendency for more home improvement
applications in rural locations is stronger in the West
Midlands than in any other part of Britain. The link between
high income areas and home improvement also seems
particularly strong in the West Midlands relative to elsewhere
and in 2016 there was a more positive link with home sales.
This points clearly to urban areas, especially those where
incomes are lower than average, scoring low in the
rankings and so it should be no surprise to find districts like
Wolverhampton, Redditch, and Stoke occupying the lower
end of the table.
The balance between home sales and planning applications
for home improvement in the region has been fairly stable
with both increasing. In 2016 there were about 30 home
improvement planning applications for every 100 home
sales. But the ratio varies widely between districts with
Stratford upon Avon, for instance, seeing 66 planning
application for every 100 sales.
Despite its fairly lacklustre placing on home improvement in
comparison to other parts of Britain, the West Midlands has
seen activity grow more than all other regions bar Eastern
England. There was an 11% growth in 2016 in the number of
applications submitted, with submissions rising to 27,500
across the region.
In cash terms the Office for National Statistics Family
Spending survey suggests that households across the
region spent about £2.4 billion on home improvements
annually across 2015 and 2016. This was well up from a
slump two years earlier and suggests that households in
the region now spend on average just over £1,000 a year
per household, if you include renters and homeowners, on
altering and improving their homes.
FOCUS ON…
West Midlands
Rank District 2014 2015 2016 Growth (%)*
★ Stratford upon Avon 2.8 4.1 3.5 1
2 Shropshire 2.0 2.0 2.3 12
3 Solihull 1.3 2.3 2.3 29
4 Warwick 2.1 2.3 2.1 -2
5 Wychavon 1.8 2.2 2.1 7
6 North Warwickshire 1.7 1.8 1.9 6
7 Lichfield 1.4 1.6 1.7 15
8 Herefordshire 1.4 1.6 1.7 13
9 Malvern Hills 1.7 1.7 1.6 -4
10 Bromsgrove 0.8 1.3 1.6 59
*2016 compared with average of 2014 and 2015 Source: Barbour ABI, ONS
West Midlands districts for home improvementNumber of home improvement applications for every 100 private homes.
59
TOP10
made in the region for home improvement, a rise
of 11% in 2016
APPLICATIONS27,500
INCREASE40%
in applications made for home improvement in Stratford-upon-Avon
Households in the region on average spent across 2015 and 2016 just over £1,000 a year altering and improving their homes
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West Midlands
Harrogate remains in the top spot for home improvement
among the local authorities of Yorkshire & Humber with a
continued increase in planning applications.
Harrogate’s planners received almost three applications
for every 100 private homes in Harrogate. This was a shade
above twice the 1.4 average for a region which sits well
below the 2.0 British average.
Hambleton, which two years ago occupied the top spot with
a surge in home improvement, has meanwhile fallen back
in the league. But what is clear from the top spots that the
affluent boroughs of North Yorkshire dominate.
If you’re seeking a place in Yorkshire & Humber where
households are most likely to undertake improvements there
are some clear signs to look for. The first is high house prices.
And the top seven North Yorkshire borough also claim the
top seven spots for average house prices. There is a strong
link nationally between the average price of a home and the
propensity of local homeowners to invest in improving their
homes. The link is particularly strong in this region.
Among the more likely homeowners are those aged over
50, those that own their homes outright and those living in
more rural settings or urban settings that are picturesque.
Across the region home improvement planning applications
rose 6% in 2016 compared with the previous two years. This
raised the total to more than 28,000.
When it comes to the households choosing to improve or
to move, the data shows both are rising in the region. But
sales are rising faster. This tends to suggests that on balance
would-be movers are not shifting towards the idea of staying
put and doing up their existing homes rather than trade
up. In 2016 there were 31 home improvement planning
applications for every 100 home sales, slightly down on the
year before. But if you were looking for a district in the region
where there might be a shift to “improve rather than move”
the most likely seems to be York, where sales have eased
while planning applications for improvement have risen.
At the bottom of the home-improver league are Barnsley
and North East Lincolnshire, centred on Grimsby. Across the
Humber is Hull, this year’s UK City of Culture. Two years ago
it was firmly rooted to the bottom of the table. It still finds
itself in the bottom three, but over the past two years there
has been a noticeable rise in home improvement planning
applications.
The Office for National Statistics Family Spending survey
suggests that the average household in the region,
including owners and renters, spent almost £1,000 on home
improvements annually over 2015 and 2016. This puts the total
annual spend in the Yorkshire & Humber at over £2.2 billion.
FOCUS ON…
Yorkshire & Humber
Rank District 2014 2015 2016 Growth (%)*
★ Harrogate 2.6 2.9 2.9 6
2 Richmondshire 2.2 2.3 2.5 9
3 Hambleton 3.0 2.6 2.4 -14
4 York 2.2 2.2 2.3 4
5 Craven 1.8 2.2 2.2 9
6 Ryedale 1.5 2.1 1.9 6
7 Selby 1.3 1.5 1.8 28
8 East Riding of Yorkshire 1.6 1.6 1.7 8
9 Bradford 1.4 1.6 1.7 14
10 Leeds 1.5 1.6 1.7 10
*2016 compared with average of 2014 and 2015 Source: Barbour ABI, ONS
Yorkshire & Humber districts for home improvementNumber of home improvement applications for every 100 private homes.
28
TOP10
REMAINS TOPHarrogate
Harrogate remains at the top of the Yorkshire & Humber Barbour ABI home improvement league
table for 2016
The top seven North Yorkshire boroughs for home improvement also claim the top seven spots for
average house prices
CLAIMED BY TOP BOROUGHSTop average house prices
Households in the region on average spent across 2015 and 2016 almost £1,000 a year altering and improving their homes
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Yorkshire & Humber
Methodology & notesThe Home Improver survey is based on the number of planning applications for residential
improvements received by each planning authority compared with the estimate for the
number private homes within that authority.
The estimates of the housing stock are taken from DCLG, Welsh Government and Scottish
Government data sources.
From this a number is arrived at which represent how many home improvement
applications there are for each 100 private homes in a local authority.
Some local authorities are excluded, these are the Channel Islands, Isles of Scilly, Isle of
Man, London Legacy (the Olympic Park). All national parks are excluded except South
Downs, where the applications are assigned to the local authority within which they fall.
Also while calculations were done for all boroughs, omitted from the lists and rankings
are authorities where there are fewer than 10,000 private homes. These include City of
London, Orkney and Shetland.
Because the data tends to be erratic to get a more sensible picture of growth in the latest
year we compare the figure with the average of the previous two years. This we believe
provides a better base.
The spending data used comes from the Office for National Statistics Family Spending
data. This fluctuates greatly so two year averages are generally used.
2011 Census data are used for population comparisons. House prices and sales are taken
from the Office for National Statistics, with enhancements to the more recent figures using
HM Land Registry and Registers of Scotland data. Income data is the mean average taken
from the Annual Survey on Hours and Earnings.
Data for new car registration are taken from the trade body SMMT.
The planning rigidity data are taken from work undertaken by Barbour ABI and represent
the number of project rejected or withdrawn within a planning authority compared with
the number of applications for new residential schemes.
There may be apparent discrepancies with the historic figures published in previous years.
These are inevitable as data are revised.
Looking forward the prospects for home improvement
would appear to be promising. That is, until we factor
in Brexit. This is an unknown. It creates uncertainty and
uncertainty is not normally good for investment decisions.
One big thing in favour of growth in home improvement
is that prices of homes have risen more widely across
Britain. In simple terms if the rise in the value of a home is
greater than the cost of the home improvement then the
investment in doing up your home should make more sense.
But with Brexit comes growing concerns over the availability
of skilled construction labour and a hike in imported building
materials resulting from the dip in the value of the pound.
How all the many factors that determine the health of the
home improvement market play out in terms of upward
or downward investment is almost impossible to assess,
certainly without even knowing the terms of the UK’s exit deal.
Much will depend on the broader economy. The link
between home improvement and growth in the economy is
very evident.
The underlying demographics remain positive to growth.
The number of potential downsizers with plenty of housing
equity continues to expand and the shortage of housing for
the newly retired is seen as limited. This may well continue
to feed demand for more home improvement, particularly in
areas that are attractive to those heading into retirement.
The continued shortage of housing generally should also
continue to provide upward pressure on the demand for more
home improvement, if only through supporting prices and
making improvement more attractive to some than moving.
The economy is on an upward path and the employment
opportunities are increasingly good. With inflation low we
are still seeing real wage growth despite the rate of nominal
wages easing of late.
But if we were to look elsewhere to indicators in other
markets that mirror that of home improvement, notably car
sales, then the future is potentially a bit shakier. The quarterly
forecast from the trade body SMMT in January was for a 5.0%
fall in sales in 2017 and a 2.9% fall in 2018. This might seem
odd to those who spotted that year-to-date March were
well up and broke records in March as buyers responded to
changes in vehicle excise duty. But forecasters still think the
latter part of 2017 will prove pretty tough for car sales.
Now the tendency has been for home improvement activity
to follow a similar path but later. This does not mean the
pattern will necessarily be repeated, nor does it mean the
scale of any potential fall will be the same.
But for those engaged in the sector, it would be unwise to
expect the coming year to be as fruitful in terms of growth as
the past few years. Caution should be the watchword.
OUTLOOK…
Looking forward
The number of potential downsizers with plenty of housing equity continues to expand and the shortage of housing for the newly retired is seen as limited
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Britain’s Home Improvers ReportAPRIL 2017
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