Revolut, the global financial app with more than 45 million customers worldwide, and over 2.8 million in Ireland, has identified a surge in the amount its customers across Ireland are spending on home improvements projects.
Revolut’s consumer spending analysis tracks millions of card payments each month to indicate several real-world spending trends by the country’s Revolut customers.
With Ireland’s national Residential Property Price Index (RPPI) increasing by more than 10% in the 12 months to August 2024, it could be that rising prices are pushing many across the country to renovate rather than relocate.
Rising prices driving renovation demand?
Whether getting onto the property ladder for the very first time or weighing up whether a move to a bigger home is within reach, it appears that priority number one for families across Ireland is renovating houses in accordance with their needs. Revolut’s analysis suggests that people are opting to renovate rather than relocate, either by extending or remodelling homes.
Headline figures included a 30% rise (QoQ increase) in payments to special trade contractors, with an additional 14% rise (QoQ increase) in masonry, stonework, and plastering costs, pointing to a probable jump in the number of house extensions getting underway last month.
Architects and tradespeople the beneficiaries
With an increased demand for work on home improvement projects, architectural firms and surveyors are proving the beneficiaries of people in Ireland’s need to renovate their homes. Spending on fees for these services rose 22% (QoQ increase) — up 18% on this time last year.
Busier carpentry contractors (33% QoQ increase) and heightened spending on plumbing and heating equipment (19% QoQ increase) suggests increasing workloads for these trades too.
Meanwhile, the amount spent at household appliance stores rose by 22% (QoQ increase), as consumers spent a third more (33% YoY increase) on furnishings for their homes in Ireland compared to last September — with a 22% increase in the last quarter (QoQ increase) reinforcing this trend.
Credit enabling home improvements
Revolut customers in Ireland looking to renovate their homes can avail of personal loans of up to €30,000 at competitive interest rates from 6.50% Annual Percentage Rate (APR) variable. Whether for home improvement projects, or something else, customers can spread the cost with flexible repayments. Over 20% of Revolut’s existing personal loan customers said their reason for accessing credit was to carry out home improvements, while in the last month, the amount of home improvement loan applications Revolut received rose by 4% (MoM increase).
A recent survey by market research company Dynata on behalf of Revolut found that over 18% of people (from a sample of 1,000 respondents representing every county in Ireland) said that renovating their house or apartment would be a good reason to use a loan in the next year.
Maurice Murphy, Head of Lending – Europe at Revolut Bank UAB, said: “During those big life events, such as moving or renovating your home, it’s important to be able to trust your bank, get a great return on your deposits, and have hassle-free access to credit when you need it. These spending patterns suggest that a growing number of our customers in Ireland are putting their money towards decorating, renovating, or extending their homes.”
Revolut Bank UAB (Irish Branch) was recently recognised by financial comparison site Bonkers.ie as ‘Ireland’s Best Consumer Business’ and ‘provider of the Best Current Account’, while the company ranked 9th as part of the Ireland RepTrak® 2024 study earlier this year.
For more information, visit: www.revolut.com/en-IE
