MBNA: Brits Favour Home Improving over Home Moving as DIY Spending Rockets 42%

WASHINGTON–(BUSINESS WIRE)–

Note: * figures drawn from data on UK spending by customers using their
MBNA credit cards over the period 1996-2016

The UK’s passion for DIY is stronger than ever. New analysis from MBNA –
one of the UK’s leading credit card providers – shows annual consumer
spending by its customers on DIY products has increased by 42 per cent
in real terms since 1996 to reach an average of £211 per person in 2015.

The figures, which analyse changes in DIY spending trends over the past
20 years, are being released ahead of the spring bank holiday weekend –
the busiest times of the year for DIY enthusiasts – to assess the state
of the DIY nation.

What’s been happening to DIY spending?

Overall, we are spending £211 per year on DIY. But who are the big
spenders across the UK and when is their money being spent?

Men continue to account for the majority of DIY-related purchases with
69 per cent of all transactions and each spending an average of £267 in
2015. Women spent just £120 on DIY in 2015, a decrease of 6 per cent
over the past two decades.

The report also reveals that 45 – 60 year olds are the keenest home
improvers, making 4.8 per cent of their total purchases on DIY and
spending an average of £240 on DIY each year. Conversely, the under 30s
spent only 2.8 per cent of their annual budget on DIY, a mere £108 per
year. This sum has actually decreased by 32 per cent since 1996.

These latest figures from MBNA support trends identified by the UK Cards
Association1 which show the most popular time of year for buying DIY
materials is typically between mid-April and late June. The research
also found that the average DIY transaction size progressively decreases
during the course of the year, by 7 per cent over the year as a whole.
This trend could be due to people seeking to take advantage of sales
which often occur at the start of the year, picking up the more
expensive items between January and May. Transaction sizes then fall as
the year progresses.

What’s been driving DIY spending trends?

The MBNA research shows that patterns in DIY spending tend to follow the
numbers of people moving home. Data from HM Revenue & Customs shows
there were over 1.2 million homes sold in 1996, reaching a peak of
almost 1.8 million changing hands in 2004. Housing sales almost halved
with the advent of the financial crisis from 1.4 million in 2007 to just
0.8 million in 2008. This resulted in a slowdown in growth of DIY
spending, which saw an uncharacteristically low 1.0 per cent increase
between 2007 and 2008. Since 2008, property sales have increased by 39
per cent, hitting 1.1 million across the UK in 2015. By contrast,
spending on DIY has seen growth of 57 per cent over the same period.

Commenting on the data, Alan North, Director of Credit and Analytics at
MBNA, said: “This spending data shows how the UK’s love for DIY has
grown significantly over the past 20 years. Today, people are spending
42 per cent more in real terms on home improvements than they did 20
years ago. The rate of growth in DIY spending did decline sharply during
the recession, but the past five years have seen the steepest rate of
growth for more than two decades.”

He continued: “Movements in DIY spending over the past 20 years have
been driven by a range of factors including economic growth, rising
incomes, online shopping, special offers and, of course, the numbers of
people moving home. Moving home is a clear prompt for undertaking DIY
tasks, whilst dips in property transactions cause a similar dip in DIY
spending. However, the fact that DIY spending as a whole has increased
by 42 per cent in the last 20 years despite an 11 per cent fall in
property transactions shows that many people are choosing to spend more
money on improving their home rather than moving to a new one.”

“Innovation and new technology have also made it easier for us to ‘do it
ourselves’. Innovation will continue to drive demand in the DIY market.
Popular DIY items have changed markedly over the years, driven in part
by the advent of new technology and web functionality. Today’s hits
include Wi-Fi-enabled alarms, digital laser measuring devices and LED
lighting, items that did not exist back in 1996.”

1. http://www.theukcardsassociation.org.uk/2015-facts-figures/index.asp

2. HM Revenue and Customs Property Sale Transactions

ENDS

About MBNA Limited

MBNA Limited (https://www.mbna.co.uk/) is
a wholly owned subsidiary of Bank of America Corporation (NYSE: BAC). It
is one of the UK’s leading credit card providers and was voted Credit
Card Provider of the Year for the third year running in the Consumer
Moneyfacts Awards 2015. MBNA is committed to implementing innovations to
make life easier for our customers. Headquartered in Chester for over 20
years, the company has a long history of investing in the local
community.

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Contacts

Mark Elliott, +44 (0)1244 574136
Mobile, +44 (0)7867 192566
Director
of Corporate Affairs
media@mbna.com