New research reveals at the beginning of April 2023 there were nearly 1.25 million households progressing through the homemover owner-occupied journey, representing a jump of 60,000 since Q4 2022.
The research from the Q1 2023 Property & Homemover Report from property data analytics specialist TwentyCi, also reveals homemovers are predicted to spend £1.1bn on beds and furniture over the next 12 months.
According to the Office of Statistics, November and December 2022 saw monthly gains of over 20% and furniture retail sales values were recorded as up by 8.9% in January 2023.
For 2022 as a whole, the amount spent on furniture was up by 14% on 2021. The volume of retail sales however fell in January 2023 by 1% compared to the same month last year and for the year 2022, the amount bought was up by 1.4% on the previous year.
Further research from Mordor Intelligence reveals that the home furniture market is poised to grow at a CAGR of 3.2% during over the next five years, with homemovers being the most economically valuable consumer group.
Colin Bradshaw, CEO at TwentyCi comments: ”Homemovers will offer a £29bn lifeline of expenditure to a retail economy which is being impacted by the cost-of-living crisis, inflation and increased interest rates. Each year, new owners spend £1.1bn on beds and furniture, £462m on soft furnishings, £2bn on flooring and window coverings and £4bn on kitchens.
“Furthermore, a homemovers average order value (AOV) is significantly greater than a non-homemover, with the return on investment derived from a focus on movers typically generating a return of £20 for every £1 invested. The buoyant housing market will support the UK furniture & floorcoverings market. Our research shows that in Q1 2023 saw 269,000 residential sales and nearly 70% of all properties listed in Q1 have sold so far in 2023.
“Sales Agreed and Exchanges are also lower, but based on March activity, the property market could be on an upward trend. Fall throughs, price changes and withdrawals have all increased, but remain remarkably low considering the unprecedented coincidence of economic and geo-political shocks. The average asking price across the UK has remained stable at £420k, and although off the peaks recorded in Q2 2022, this represents an increase of 24% compared to 2019.
“For the majority of homemovers, deferring expenditure during a move on items such as flooring, beds, sofas or kitchens is not an option. This makes targeting homemovers an obvious business choice. Understanding when households are on the move and at what stage can drive huge revenue and ROI gains across multiple sectors and categories. Consequently, brands should consider adjusting their marketing to have a greater focus on this valuable consumer group.”