May 31st, 2023 | Andrew Hagger | News

Many of us are trying to find ways to cut costs right now. With everything from food prices to energy bills going up, anything we can do to save money is likely to be welcome.

One way to save is to look at what we drive and the way we drive it. For motorists, a car is often both a necessity, making it possible to get to work and pick the kids up from school, and an expensive means of getting around.

However, it is possible to save money on our motors. Here are some ways to reduce spending on your car.

Tyre pressure

By ensuring your tyres are safe to drive on and maintaining optimum tyre pressure, you’re more likely to get the most out of them. This means that you won’t have to replace you tyres as quickly as you would if you didn’t look after them properly.

Plus, you’re legally responsible for making sure you have quality car tyres that are the right thickness. They should have a tread depth of at least 1.6mm in order for them to be legal to drive on. You can run a simple check on this by placing a 20p piece in the tread groove of your tyre.

Drive economically

Avoid aggressive driving techniques like harsh braking, fast acceleration, and excessive speeding. These habits might result in higher fuel costs as you burn through diesel or petrol faster when you drive at excessively high speeds. They can also lead to faster vehicle degradation.

Regular maintenance

By keeping up with basic maintenance jobs on your car, you’re less likely to see things breaking and needing costly repairs.

If you spot any damage or wear and tear, such as worn brake pads, take your car to a mechanic to get the essentials updated and replaced right away. While this can mean having to find the funds, it prevents having to fork out for bigger repair jobs later down the line.

Try getting into the routine of regularly inspecting your car. This will help to see if anything’s different and if anything needs updating.

Review your insurance

Insurance can take up a huge chunk of your monthly outgoings. To be sure you are getting the best price for your policy, look around for better deals when your current cover is up for renewal.

Car sharing

If you and a colleague are heading in the same direction, why not car share to the office? This can reduce money you spend on fuel each month and also reduce emissions. Plus, it could potentially half the amount of wear and tear on your motor as you won’t be driving as much.

Consider fuel efficiency

If you’re in the market for a new car, look at models that offer the best fuel efficiency. While many of us are moving toward electric vehicles in time for the diesel and petrol ban, it’s likely you’ll be driving traditionally fuelled motors for a while longer, so it’s worth shopping around for a car that wont cost the earth to fill up.

May 22nd, 2023 | Andrew Hagger | News

As summer approaches and wedding season hits full swing, new research from American Express has found that UK wedding guests are set to increase their spend attending weddings by 18% this year, compared to 2022.

The average wedding guest is expecting to spend £1,045 on average per wedding this year, equating to £16.6 billion across the UK. In 2022, wedding goers spent an average of £883 to mark the first year of restriction-free ceremonies, totalling £15.6 billion³ as a population.

The gift of approval

Gifts for the newlywed couple will be the biggest expense for wedding guests in 2023, with attendees expecting to spend an average of £217.90 on brides and grooms. The most common amount spent on a wedding gift is £25-£50 with 20% of UK weddings guests planning to spend that much per wedding in 2023. 10% indicated they are planning to spend £400 or more.

Accommodation is the second biggest cost for guests at £203.90. Accommodation also saw the biggest increase in spend in 2023, up almost a third (32%) compared to 2022.

Top 5 costs for UK wedding guests in 2023

Increase in cost from 2022

1.   Gift for the couple (including cash gifts) – £217.90

+24.6%

(2022 – £164.40)

2.   Accommodation – £203.90

+32.2%

(2022 – £154.20)

3.   Childcare – £202.70

(2022 – N/A)

4.   Travel – £196.20

+22%

(2022 – £160.80)

5.   Outfits and accessories – £160.30

+1%

(2022 – £158.60)

Beyond cash gifts (47%), wedding-goers are most likely to gift newlyweds with couples’ experiences (21%), kitchen appliances (20%) or home décor and glassware (both 18%). Over two-thirds (68%) of wedding guests are looking to get cashback or earn loyalty points from their wedding guest spend.

In addition to increasing guest spend this year, the average number of guests per wedding is expected to rise in 2023. The research found that the average guest count for weddings in 2023 is 74, compared to 66 in 2022.

It’s (only) a piece of cake

Weddings will continue to see a positive rebound effect from Covid-19 in 2023, with over one-third (37%) of UK guests planning to attend more weddings in 2023 compared to 2022. Overall, 52% of UK guests will attend a wedding in 2023 that was postponed since the start of the pandemic in 2020.

Somewhere beyond the sea

Plenty of UK couples are taking the opportunity to get married abroad in 2023, with Spain and Ireland ranking top for destinations to tie the knot outside of the UK. Over one in ten (12%) wedding guests will be heading to Spain for weddings this year, with the same proportion heading to Ireland (12%) for ceremonies in 2023.

Wedding guests will also be looking to earn something back for themselves when celebrating marriages this year, with 68% looking to earn loyalty points or cashback when they spend at weddings. American Express offers a range of Cards that earn Membership Rewards points or cashback. For example, the Platinum Cashback Credit Card offers a range of benefits for new and existing Cardmembers. During the first three months of Card membership, new Cardmembers get 5% cashback on eligible purchases, up to £125, and up to 1.25% cashback after that. Representative 35.0% APR variable. 18+, Terms Apply, Subject to Status.

May 16th, 2023 | Andrew Hagger | News

More than a fifth of people who are planning to go on holiday in 2023, said they would be paying for their holidays using their credit card, according to a survey from Go.Compare.*

Go.Compare asked more than 2000  people about their holiday plans for 2023, where respondents were asked “How are you planning to pay for any holidays you hope to go on in 2023?”, nearly a quarter (23%) of Brits planning on a holiday this year answered that they were planning to use a credit card to pay for their holiday this year, with another 5% planning on taking out a loan to cover the cost.

Under 25s were the group most likely (29%) to be relying on credit cards to pay for their trips, with the under 35s the most likely to take out a loan (9%). It was these younger age groups who were also the most likely to be going on holidays with other family members who would be paying for the trip (21%).

More than a third (40%) of people said they had enough money in their bank account to pay for their holiday, or that their monthly salary covered the cost. The survey revealed that those over 65 were most likely (50%) to pay for their holiday in this way.

Ceri McMillan, Go.Compare Travel insurance expert, said on these results: “It’s worrying that a significant proportion of people are planning to use their credit cards or take out a loan to cover the cost of a holiday this year.  This could be yet another knock-on effect of the cost-of-living crisis, where disposable incomes are being squeezed and people are having to use other methods of payment for big purchases.

“It may be that some people are opting to pay for their holidays on their credit card as it means you are further protected if your travel firm collapses – most credit cards offer buyer protection on purchases between £100 and £30,000 – but it also provides the chance to spread the cost of the holiday across the year. But for whatever reason people are using their credit card, it is always important to fully understand the benefits and risks to your financial decisions, no matter how big or small.”

Go.Compare has written a helpful guide on the things to consider when making the decision to pay for your holiday using your credit card.

Pros

• Provides extra protection from Section 75 of the Consumer Credit Act –  if you paid for some or all of your holiday by credit card (not debit or charge card) and if the price of the holiday is more than £100 and less then £30,000 – which could help you get a refund if you need one;

• If you are using a rewards card then you could receive more benefits, such as air miles;
• It allows you to spread the cost of the holiday across more months if you need to.

Cons

• If your interest rate is high on your credit card, it can increase the cost of your holiday;
• Some travel providers may add fees for using your credit cards or not accept them as a means of payment;
• Using your card when you are on holiday may bring with it overseas fees or charges for withdrawing cash.

The full article can be found here: https://www.gocompare.com/credit-cards/holiday-use/

May 10th, 2023 | Andrew Hagger | News

Aspiring homeowners can improve their chances of getting on the housing ladder thanks to extra evidence of a borrower’s good financial track record being factored into mortgage checks by a leading lender.

Leeds Building Society has become the first UK mortgage provider to partner with Experian and connect to its free Experian Boost service.

It means the last 12 months’ of regular debit payments, such as council tax and subscriptions to digital entertainment services like Netflix or Spotify, can now contribute to credit scores and be factored into mortgage applications to Leeds.

The service uses open banking to link the borrower’s current account payments to their credit score which is then connected to the Society’s lending systems. During testing, 7.5% of Society applicants would have gained an improvement in their credit score by using Experian Boost.

Leeds Building Society has more than 800,000 customers and last year it helped 18,000 people onto the housing ladder for the first time.

It lends up to 95% of the value of a home both for outright purchase and shared ownership mortgages, applications for which will also be eligible for boosted credit scores.

Last year the Society stopped lending on residential second homes to focus on first time buyers and also published a series of public policy proposals to address the homeownership crisis.

Richard Fearon, Chief Executive at Leeds Building Society, said: “We’re proud to be the first mortgage lender in the UK to make it easier for aspiring homeowners by incorporating free, ‘boosted’ credit scores.

“This will particularly help younger borrowers, first time buyers and anyone on lower incomes who face the toughest challenge to prove their ability to repay. Often through no fault of their own, these groups can struggle to build a good credit score because they need to spend most of their earnings on rent and other regular payments. Indeed, the vast majority of existing Boost users are renters.

“Housing is at its least affordable point since our founding year in 1875, a sad indictment of decades of inertia over the UK’s housing crisis. But we will continue to find ways we can help and put homeownership within reach of more people, just as we have for almost 150 years.

“It is no coincidence that a building society is the first to offer this service – we were the original homeownership pioneers and I’m delighted we’re maintaining that tradition.”

Sigga Sigurdardottir, Managing Director, Consumer Services at Experian, said: “Our partnership with Leeds Building Society further supports Experian’s mission to improve financial inclusion for consumers.

“As many people across the UK face barriers to homeownership, we’re delighted that Boost users can now use their boosted scores to help them get on the ladder, making that dream of home ownership more accessible for people across the UK.”

Customers can opt-in and out of the boost service at any time and the service is completely free. More information can be found at https://www.experian.co.uk/consumer/experian-boost.html

May 5th, 2023 | Andrew Hagger | News

Go.Compare car insurance has found that one in six drivers (18%) have had their car keys lost or stolen, and is warning motorists to check their policy documents as not all insurance policies provide this type of cover as standard.

The research, which interviewed over 1500 motorists about whether or not they’ve had their keys lost or stolen, found that women are a lot less likely to lose their car keys than men, with 13% saying they’d previously had their car keys lost or stolen – compared with 22% of men admitting they had lost or had their keys stolen.

In response to this, the experts at Go.Compare reviewed 310** standard car insurance products and found that, while 87% of products will provide cover for stolen keys as standard, this drops to 64% when it comes to covering keys that have been lost.

The maximum amount that insurers would pay out also varies significantly between providers so the comparison site is warning car insurance customers to carefully check their policy and make sure they’re adequately covered if anything should happen.

In most cases, a car insurance policy will cover the replacement of lost, stolen or damaged keys. Some policies will also pay out for replacement locks due, but again, this amount varies between policies.

Ryan Fulthorpe, Go.Compare’s car insurance spokesperson said on the findings; “If one in six drivers are likely to lose their keys in their driving career, it makes sense to have the right amount of cover in place on their insurance policy. According to industry figures, the average cost of replacing a lost or stolen car key is £240***, but it can cost a lot more, for example, the cost of replacing a Toyota Yaris remote key is estimated at £390.

“With such a variety in costs when it comes to replacing a lost or stolen car key, including the complete replacement of a locking system for some new cars, it’s absolutely worth spending a few minutes checking your policy and the level of cover that you have in place for lost or stolen keys.

“Whilst you can’t prevent all eventualities, there are a few ways to keep your car keys safe – for example, you can download a finder app or get a Bluetooth tracking device so that if you can’t find your keys, you can locate them on a map and it will make a sound when you’re in close proximity. Also try to keep your keys in a designated place in the home, but away from external doors.”

Go.Compare has a written  guide about car keys and insurance, which can be found here: https://www.gocompare.com/car-insurance/guide/lost-car-keys-insurance/.

May 2nd, 2023 | Andrew Hagger | News

While bank branches continue to close, creating a growing number of ‘banking deserts’ across the country, new Ipsos research for Age UK has found that four in 10 older people (39 per cent) with a bank account in Britain – equivalent to 4.09 million people – are not managing their money online and could be at high risk of financial exclusion.

The polling found a high level of support for in-person banking, with three-quarters of over-65s with a bank account – equivalent to 7.86 million people – wanting to undertake at least one banking task in person at a bank branch, building society or Post Office.

The research also found that nearly a third of older people with a bank account (31 per cent) – equivalent to 3.25 million people – feel uncomfortable with online banking, despite its growing popularity in recent years.

Published today, Age UK’s new report ‘You can’t bank on it anymore’ shows that age, gender, income level and social grade are all key factors in determining how comfortable people feel about online banking.

The research participants who were most likely to feel uncomfortable using online banking were those aged 85+, female, on a low income, or more disadvantaged than their counterparts.[vii] And among those who were uncomfortable, not wanting to be defrauded or scammed (31 per cent), a lack of trust in online banking services (28 per cent) and a lack of IT skills (28 per cent) were cited as the main reasons.

On the back of these findings the Charity is calling for the protection of physical banking services for those who do not, or cannot bank online, and for the accelerated roll-out of Shared Banking Hubs in areas where bank branches are fast withering away. On hearing about Shared Banking Hubs, half the participants with a main bank account (49 per cent) – equivalent to 5.14 million people – said they would be comfortable using one as a main place to manage their money in their main account– a surprisingly high proportion, given that most of us are yet to experience one of these new settings.

Banking Hub pilots are a relatively new solution to the problem but have so far worked extremely well and are proving popular with the local communities in which they are based. Safeguarding physical banking services in this way is a positive move forward but Age UK is keen for the roll-out to speed up to avoid more communities becoming ‘banking deserts’, with no face-to-face banking services or ATMs in place, leaving many older people living there feeling isolated and disenfranchised.

Caroline Abrahams, Charity Director at Age UK, said: “We need to face up to the fact that huge numbers of older people, the ‘oldest old’ especially, are not banking online. In addition, our new research also shows that even older people who do bank online often want the ability to talk to a bank employee in the flesh about some kind of transaction. These findings therefore demonstrate the huge and continuing demand for face to face banking services among our older population, and it’s crucial that the banks respond. Otherwise they are effectively disenfranchising millions who are willing and able to manage their finances – just not online.  

“It seems however that the era of every bank having its own local branch is nearly over.  The good news is that this need not spell the end of face to face banking, provided shared Banking Hubs can be established to take their place. At the moment our concern at Age UK is that there can be too long a delay between bank branches shutting down in an area, and a new Banking Hub becoming operational. To be fair to the banks it takes time to establish a Banking Hub and get it going, but maybe we need a new rule whereby if they want to close a branch, they have to provide communities with enough notice for a Hub to come on stream before all the traditional face to face banking services there disappears.  

“These Hubs are also usually not considered until there is just one bank branch left in an area, but this is another rule that may need changing, in favour of ensuring a reasonable percentage of local people are able to access banking services before triggering the need for a shared Banking Hub. This is because if there’s one branch left but only a few local inhabitants bank there, then hordes of people of all ages, older people especially, will be left high and dry and unable to access the local banking services they need.

Age UK is also calling for the banks to do more to encourage and support older people to gain digital skills and benefit from online banking, if it’s right for them. Older people who are digitally excluded often need ongoing, personalised support, to gain digital skills. Once confident with some online activities, such as emailing and browsing, they may need further support to extend their skills including being able to safely bank online.

Age UK produces step-by-step guides and are available on Age UK’s website for those who are already online but want to boost their online confidence. For those not online, they can contact Age UK’s Advice Line on freephone 0800 169 65 65 or contact their local Age UK for further information and advice.

April 25th, 2023 | Andrew Hagger | News

A new survey from Go.Compare car insurance has found that of the majority (56%) of Brit drivers who allow their car insurance to auto renew, one third (19%) do so without checking other quotes.

The research asked over 1400 insured drivers about their attitudes to motor insurance renewals and found that younger drivers (aged 18-54 22%) were more likely to auto renew without doing any marketplace comparisons than their older counterparts (aged 55+ 14%).

When asked why they let their car insurance auto renew, one quarter (26%) said it was out of loyalty to their current insurer, while an equal number (25%) believed that because their insurer was the cheapest last year it would be the case again this year.

Nearly one in six (16%) drivers said that auto renewing simply gave them peace of mind that they remained insured.

Sorting out finances was also cited as a reason among many auto renewed drivers, with many (15%) saying they didn’t want the hassle of changing monthly direct debits and still others (9%) who were worried that they might lose their no claims bonus if they switched insurer.

When it came to how much notice they took of their renewal letter or email, a minority (46%) admitted to checking last year’s premium to see how it had changed, and even fewer (35%) reviewed the renewal documents for any changes to the coverage provided.

Ryan Fulthorpe, car insurance expert at Go.Compare said: “I am always shocked when I read our survey results that people still aren’t taking advantage of comparison websites and the possible financial savings they could gain, as well as the potential for better insurance cover, from just a few minutes online.

“The Financial Conduct Authority implemented the General Insurance Pricing Practices (GIPP) in 2022, meaning that insurers can’t offer better deals to new customers and that renewal prices should be the same as a driver with the same risk profile, but that’s only with the same insurance company.”

“Therefore, it’s even more important that drivers shop around with other insurers to check they are getting a good deal on cost and cover,” Ryan added.

For further tips and advice on how to get cheaper car insurance, visit: https://www.gocompare.com/car-insurance/guide/top-tips-for-cheaper-car-insurance/

April 21st, 2023 | Andrew Hagger | News

Whether you like it or not, everyone has a credit score. Although the phrase ‘credit score’ might fill you with dread, they aren’t as scary as some people make out.

If you’re wondering what a credit score is, whether you’ve got one and how yours might be impacting your life, you’ve come to the right place.

We break down all the information you need to know below.

What are credit scores?

A credit score is a three-digit number that indicates how likely a lender is to let you borrow money from them. Normally between 300-800, credit scores are calculated by looking at how much you’ve borrowed, how much you owe, and how reliable you are when it comes to your finances (i.e., whether you miss payments).

The higher your credit score, the more likely you’ll be approved for loans, credit cards, or even phone contracts.

What affects your credit score?

If you’re generally pretty good at managing your finances, then you’ll probably have a good credit score.

Some factors that can bring down your credit score include:

• Frequently setting up new accounts
• Maxing out your overdraft and/or credit card
• Applying for credit too frequently
• Borrowing more than you can afford
• Having no credit history

Why is a good credit score so important?

Even though it’s easy to overlook a credit score, a bad credit score can have a huge impact on your financial health. For example, a poor (or non-existent!) credit score can stop you from getting a mortgage or mobile phone contract.

How to improve your credit score

Luckily, it’s not all doom and gloom if your credit score isn’t looking so rosy. You can improve your credit score by:

• Paying your bills on time – Although this might be easier said than done with 8 million people struggling to keep up with high living costs, there are a few things you can do. Firstly, set up direct debits each month to reduce the chances of a payment slipping through the net.
• Don’t apply for credit too often – If you’ve been turned down for credit, it’s tempting to try again. But you shouldn’t. If you unsuccessfully apply for credit multiple times, this can cause your credit score to suffer.
• Update your address – An easy way to improve your credit score is to update your address and register to vote.
• Take out a credit-building card – These are designed to benefit people that have a low credit score. They can be a great way to build up your credit score if you can afford the monthly payments.

Final thoughts…

While building up your credit score might seem daunting, there are plenty of ways for you to get ahead. Even simple things like updating your address and automating bills can help you build a credit score to be proud of.

If you haven’t already, why not start today?

April 17th, 2023 | Andrew Hagger | News

Family is the main trigger to becoming an investor for young people with 39% saying a discussion with or recommendation from a family member led to them starting to invest, according to research¹ by the Association of Investment Companies (AIC) among investors aged between 20 and 40.

Other triggers include a build-up of savings (36%), low savings account rates (24%), and seeing something online that sparked people’s interest (24%).

Friends and colleagues are also important, with 23% of respondents saying they started investing after a conversation with or recommendation from a friend or colleague. Three-quarters of young investors know someone else who invests, with most of these naming friends.

Just over half (56%) of young investors have over £5,000 invested and this rises to 68% for those aged 30-39 years old. The majority (52%) usually use an online platform to invest, 17% use a bank or building society, 13% use a financial adviser and 11% an online investment service such as Nutmeg or Wealthify.

Stocks and shares followed by cryptocurrency are most popular investments

When considering different types of investments, investors are most aware of individual stocks and shares (89%) and nearly two-thirds (65%) of young investors hold these. Cryptocurrency comes second with more than three-quarters of young investors (77%) aware of it and half (50%) holding cryptocurrency. Interestingly, 59% of young male investors hold cryptocurrency, versus only 43% of female respondents. 

Nearly three-quarters (73%) of young investors are aware of bonds and 28% hold them. Premium bonds also score well on awareness (62%) and they are held by 24% of young investors. Investment funds have higher levels of awareness (47%) than exchange traded funds (ETFs) (43%) but slightly more young investors have ETFs (21%) than investment funds (19%).

Forex (foreign exchange) has a higher level of awareness amongst young investors (38%) than investments through crowdfunding platforms (34%) and investment trusts and index tracker funds (both 33%). However, the number of young investors holding these different investments is very similar with 11% opting for forex, 9% accessing investments through crowdfunding platforms, 11% holding investment trusts and 12% using index tracker funds.

Feeling interested and excited – checking investments regularly

Young investors are highly engaged. Over half (57%) had checked their investments during the last week and a further 29% had checked their investments during the last month. It’s therefore not surprising that these investors feel positive towards investing with 59% interested, 46% excited, 30% empowered, 27% confident and 21% calm. However, 30% of men felt calm in comparison to just 13% of women. Despite these upbeat feelings, 42% of investors felt cautious and 14% were worried about investing. 

Nearly three-quarters of young people want to retire early, with 76% looking to retire before the state pension age of 66.

An optimistic 14% are planning to retire before they are 51 years old and an additional 15% expect to retire before they are 56.

Annabel Brodie-Smith, Communications Director of the Association of Investment Companies (AIC), said: “Friends and family who invest have a key role to play in encouraging the under-40s to start investing. Friends, family and financial advisers are also the main sources of information for younger investors. It’s encouraging that these investors are engaged and interested, with two-thirds holding individual stocks and shares. But the popularity of cryptocurrency and forex trading suggests that some young investors are risking getting burned before they can build up much investment experience.

“It’s not surprising in these tough times that the cost of living crisis is the biggest barrier to investing for three-quarters of investors in their 20s and 30s. Worries about markets and poor economic conditions are also common. Women are particularly cautious, with a fifth of female respondents concerned about their lack of understanding of investments in comparison to 9% of men.

“The investment industry clearly needs to do more to help young investors learn about the different investment choices. One option for young investors to consider is investment trusts. These are a type of fund listed on the stock exchange which you invest in by buying and selling their shares. They offer strong long-term performance and access to a wide range of assets, from technology, renewable energy and private companies to global and UK shares.”

Where do young people go for investment information?

Young investors rely most on people for their investment information with 22% of all respondents relying on friends, 20% using a financial adviser, 14% turning to other family members and 13% asking their parents. Social media is the second most popular source of investment information with YouTube the most popular channel (used by 24% of all respondents) followed by Instagram (14%), Reddit (11%), Twitter (10%) and Facebook (9%).

Traditional media is used by 36% of young investors, with 22% of all respondents poring over the finance sections of newspapers and 20% using books for their information. A quarter of all respondents (25%) use online search engines such as Google.

Barriers to investing – the cost of living crisis

In the current difficult economic environment, the cost of living crisis is the main barrier to investing, affecting three-quarters (75%) of young investors. Being worried about markets and poor economic conditions is the second obstacle, influencing 41% of respondents. Just over a fifth (21%) are concerned about low returns and for 16% lack of understanding is a barrier. Over a fifth (21%) of women are concerned about their lack of understanding in comparison to just 9% of men.

Stocks and shares ISAs most popular

When it comes to investment products, stocks and shares ISAs come out on top with 61% of young investors having these, although more men (69%) have one than women (55%). Next most common was a workplace pension (46%) and then a cash ISA (30%). Self-invested personal pensions (SIPPs) are held by 17% of young investors and various types of ISAs are held: cash Lifetime ISAs (17%), stocks and shares Lifetime ISAs (16%) and Help to Buy ISAs (15%). Just over a sixth of respondents (16%) have a general investment account, 12% have an investment trust share plan, and Child Trust Funds and Junior ISAs are held by 13% and 11% respectively.

To find out more about investment trusts, also known as investment companies, see the AIC’s guide.

April 5th, 2023 | Andrew Hagger | News

Ahead of the Easter weekend which will see many Brits kick start their DIY projects for the year, new research from American Express shows that the average UK adult will spend an estimated £1,380 on DIY in 2023, equalling £38.7 billion as a nation.

With lighter and longer days, more and more of us are picking up our tools and beginning to spruce up our homes. Over half of UK adults (53%), or 28 million, have started spending or plan to spend on DIY this year. Furthermore, over a third of DIYers in the UK (37%) are planning to spend more on DIY this year compared to 2022.

Inspired design

Social media is playing an increasingly influential role in inspiring the UK with its DIY projects, particularly amongst the nation’s Gen Z and Millennial demographics. Seven in ten (71%) of Gen Z adults who will do DIY this year use social media as their go-to for DIY inspiration, along with 67% of Millennials.

This compares to just a third (33%) of Gen X and 15% of Boomers using social media for DIY inspiration. Nearly a quarter (22%) of Boomers are instead opting to use home and DIY websites to find home improvement inspiration.

A work in progress

Our homes are often a labour of love and an ongoing process with just 6% of DIYers believing their home is the finished article. Just under half (46%) of UK adults spending on DIY this year think their home needs small touches, whereas 36% believe their home is a work in progress.

Outside space is at the top of the UK’s DIY to-do list, with 42% planning to improve their garden in 2023, followed by bedrooms (38%), living room/lounges (34%) and kitchens (34%).

Areas of the home Brits are looking to improve in 2023:

1.    Garden – 42%

2.    Bedroom – 38%

3.    Living room/lounge – 34%

4.    Kitchen – 34%

5.    Bathroom – 30%

6.    Dining Room – 17%

7.    Study/office – 13%

Tackling DIY head on

With social media both inspiring the nation and providing countless video guides on DIY, 50% of DIYers revealed they are confident in their DIY skills with even more (53%) stating that they enjoyed DIY. That said, almost 1 in 3 (32%) said that DIY makes them moody. That might explain why 63% of the UK stated that if they could afford to, they would pay for someone else to do their DIY, with only 19% of the nation claiming they wouldn’t.

For DIY projects that provide the biggest headache, almost half of UK DIYers (43%) find plumbing to be the most challenging task to do themselves followed by fitting a carpet (35%), hanging a door (32%) and putting up wallpaper (27%).

Building up the points

When it comes to paying for home improvements, 56% will use a credit card with 33% planning to collect loyalty or rewards points, and more than a quarter (28%) plan to collect cashback.

Maggie Boyle, Vice President at American Express commented: “Spring is always a popular time for Brits to start improving their homes and gardens for the rest of the year. This new research shows the value Brits place on their homes and the pride we take in doing the job ourselves. With over a third of the UK set to spend more on DIY in 2023 compared to 2022, American Express Cardmembers can make their spending go further by earning valuable points and cashback.”

American Express offers a range of Cards that earn Membership Rewards points or cashback. For example, the Platinum Cashback Everyday Credit Card offers a range of benefits for new and existing Cardmembers. During the first three months of Cardmembership, new Cardmembers get 5% cashback on all purchases, up to £100, and up to 1% cashback after that. Representative 28.8% APR variable. 18+, Terms Apply, Subject to Status.