What has the Chancellor done for the fitted furniture market?
The Fitted Furniture Market No Comments »Well that’s it; the last budget before the general election. How will it affect the the market for home improvements and bespoke fitted furniture in particular?
Well, assuming that many of the provisions pass into legislation, and that’s no certainty, given the probability (if the polls are right) that this government will not be returnd to power, the budget has been largely judged as ’safe’ or ‘nuetral’, apart from some of the more right-wing press who are baying to know how Mr Darling intends to cut government borrowing by 50% in four years. Come on guys, either you are being disingenuous your you are seriously niave. Its the election stupid!
However, even in a modest budget, there were some crumbs for the home improvement market: the stamp duty holiday for first-time buyers on properties worth up to £250,000 means that some of the people notably absent from the housing market in recent years will now have up to an extra £2.5k available to spend. OK, they’re unlikely to spend it on a fitted bedroom, more likely it will subsidise the massive deposit they need to raise and, because its only a two year window, they will need to get their skates on. Factor in 6 months house hunting and due process and they will only have 18 months to seal the deal. That should allow people further up the scale to start trading up again and open up the possibility of some useful enquiries from the movers rather than the improvers who have kept us warm the recession. A hogh percentage of movers are looking to install a home office as soon as they move in these days andthat more and more of our customers work from home that creates more opportunities when the housing market is positive. The downside is that in order to pay for this largess, our favourite clients in the £1m plus properties will now have upwards of £10k less to spend. Hey Ho, there aren’t going to be many win-win financial situations in the next decade but anything is better than stagnation.
Other upsides are the £95 billion targets for the two nationalised banks to start lending to small business, although it’s difficult to see how this can be done without lowering the barriers to entry and a concommitant uptick in borrower defaults.
The mooted reduction in business rates for SMEs can only be a good thing and the gradually improving statistics on unemployment and Thursday’s better than expected month on month retail figures are encouraging.
All home improvement companies will need to be on top of your game for the next year or three but thank goodness Options Furniture has such a loyal following of old customers who come back time and time again and keep on recommending their family and friends.
Looking through this week’s customer feed back forms, I found some of the comments generous to the point of embarrasement but I particularly liked ‘it’s always a pleasure to do business with Options’.








