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Date: 24 Oct 2008

Self-builders on the increase

The latest new start figures from Emap Glenigan show that there were 19,018 planning applications from self-builders for the first six months of this year. The August figures for 'regular' housebuilders from the NHBC starts dropped to only 3,720 private sector applications, the lowest level since accessible records began.

Remember we're comparing a 6 month figure with just the most recent month at the tail end of a steeply downward trend. But the number of self-builders are a force to be reckoned with, and should be on every merchant's radar.

In the last housing slowdown, self-builders grew both in absolute numbers and by the proportion of the overall activity they made up.

The average spend on a self-build home is typically much higher than on a speculatively built home, making financial sense for suppliers to target these developers, both in terms of potential profit available and by the weight of numbers of these projects on the go.

Smaller, more agile merchants, may be at an advantage with these types of customers, for their ability to nurture personal relationships. Self-builders are also far less likely to be locked into long-term buying agreements with the larger chains.

More:
http://www.glenigan.com/

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