The UK’s home improvement retailers are enjoying a banner year on the London Stock Exchange, as cash-strapped consumers turn to DIY projects in lieu of moving home or undertaking costly renovations.
Publicly listed companies like B&Q owner Kingfisher, Topps Tiles, Wickes, and sofa retailer DFS have all seen double-digit percentage increases in their share prices of up to 56% this year. Kingfisher and Topps Tiles have posted their best annual gains since the pandemic, while DFS is enjoying its strongest performance since 2019.
The surge in DIY sales has been fuelled by a stagnant housing market. Data from Halifax, the UK’s largest mortgage lender, shows flat growth in house prices in November and a significant slowdown in annual growth to just 0.7%, down from 1.9% the previous year. This reflects weaker buyer demand as cash-strapped consumers turn their attention to cheaper home improvement projects.
Measures introduced in last month’s budget, including increases to the minimum wage and changes to property taxes, could further spur the DIY market as the cost of activities like eating out rises. “That may drive a continued shift toward spending more time at home,” says Manjari Dhar, an analyst at RBC Capital Markets.
However, the boom in home improvement goods has not been matched by building materials suppliers, suggesting some homeowners have put large renovation projects on the back burner. Shares in kitchen supplier Howden Joinery Group have risen by 5% this year, while Travis Perkins has suffered an 11% fall.
While the DIY surge has provided a welcome boost to the retail industry, the data also points to the challenges facing the UK housing market. Earlier this month, Halifax said buyers attempting to get on the property ladder were now in the best position to do so in a decade, but the Royal Institute of Chartered Surveyors found that new buyer demand had declined to the lowest levels since 2023.