It appears that the coronavirus pandemic will impact Britons’ spending habits well into 2021, with many homeowners planning to spend more on improving their homes and some intending to spend less on their appearance, new data has revealed.
Marcus by Goldman Sachs, the Wall Street giant’s consumer arm, surveyed 8,000 people in the UK in August and September 2020, asking what they anticipate they will spend more or less money on in the next 12 months.
40% of homeowners surveyed said they plan on spending more on home improvements. Those who are working full time are the most likely to spend more on home improvements (37%), “perhaps inspired by the desire to create a better working from home environment,” the report said.
The research found that 68% of those surveyed believe their home influences their overall sense of wellbeing, which perhaps could explain why 36% of people surveyed think that it is worthwhile borrowing money to undertake home improvements.
18% of respondents said they planned to spend less on their physical appearance in the coming months, with only 11% saying that they planned to spend more, likely because going out has become so limited amid lockdown restrictions.
Despite having to stay indoors for a big part of 2020, the research found that only 3% of people were planning to increase their spending on on-demand entertainment services, with 16% planning to cut back. Around 21% of respondents said they plan to spend less money on technology.
The research report also found that one in five (22%) planned to spend more money on holidays and travel in the future, with a similar percentage (20%) planning to spend less.
“This roughly even split shows how we may be divided in our opinions about the possibility of future travel,” the report noted.
Amanda Le Brocq, head of strategy at Marcus by Goldman Sachs in the UK, said that “as we move into a new year, it’s fascinating to see how the impact of 2020 has changed what we think is worth spending our money on. After a year of lockdowns and remote working, it’s possible that many people invested in new technology and on-demand entertainment services for the home, and therefore plan to cut back on these things next year.”
“And with further lockdowns and uncertainty possible in 2021, it’s not surprising that some of us want to invest more in our homes,” she added.
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