Why we’re splashing out on DIY

BRITONS are sprucing up their homes once again after years of holding back on home improvements when their wages stagnated in the economic downturn.

A study has revealed that spending on credit and debit cards grew at its fastest pace for three years between April and June, rising 4.5 per cent compared to a year earlier.

And Barclaycard said this surge was fuelled by a big rise in purchases in furniture and DIY stores. Spending in furniture shops rose by 7.4 per cent – the fastest pace since 2012 – while it grew by 5.2 per cent in home improvement stores.

The amount spent on restaurant meals, foreign holidays and leisure and entertainment has also risen in recent months compared to 2014.

Barclaycard analysed its own credit card data, as well as spending on Barclays debit cards. They said low inflation coupled with an improving economy and better pay rises meant families were willing to splash out on big-ticket items such as sofas and dining room furniture, or on painting and extending their home.

Chris Wood, of Barclaycard, said: ‘After a prolonged period of strained household budgets, consumers are making the most of the favourable economic conditions and enjoying the increase in their purchasing power.

‘Low inflation is helping to boost consumer confidence and, as a conclusive election result delivered a swift dose of reassurance to consumers, people are starting to make some of those home improvements that they were previously putting off.’

It comes as a report by the Royal Institution of Chartered Surveyors found families were opting to mend or extend their current homes rather than move.

A lack of suitable housing and high stamp duty fees – despite reforms last year to reduce the cost – have made ‘renovation and extension works more financially appealing than changing home’.

The RICS added: ‘There is some consensus that the lack of stock is, to an extent, self-perpetuating as it acts as a deterrent to new vendors entering the market due to the reduced choice on offer for their next purchase.’

Figures from the RICS show the average estate agent branch now has just 50 homes for sale, the lowest number since its records began in 1978.