home decor

The home decor market is highly dependent on the performance of the housing market and on consumer income and confidence. A complex range of factors are therefore pertinent including economic influences (such as inflation, taxation, interest rates, mortgage rates and house prices) and political and social factors (such as government policy, demographics and housing demand). The increase in home owner occupation has been a major force in driving the home decor market. The present proportion of mortgages or outright owners is around 67 percent which means that the majority of the population has a financial interest in their homes. The recession had a major impact on the whole market, as it resulted in a slowdown in housing activity in terms of both house building and house moving, with the housing market a major motivating factor for the purchase of home decor products. Other factors resulting in fewer purchases included an increase in savings as consumer confidence fell and personal disposable income (PDI) grew at lower levels. The home decor market is worth over £2,600 million at manufacturers selling price (MSP) the largest sector being carpeting with over 50 percent of the market, followed by window coverings with 24 percent and smoothes, ceramics and wall coverings each accounting for 8 percent.