DIY stores could see a rush to beat VAT increase

More people may be looking to make major home improvement purchases before the rate of VAT increases from 17.5 per cent to 20 per cent in January, it has been claimed.

Editor of Build It magazine Anna-Maria DeSouza stated this would be seen across all retail sectors and not just DIY.

"I am absolutely certain that before the end of the year there will be a rush from consumers investing in the more expensive items for their homes to save themselves money on VAT," she commented.

Ms DeSouza also suggested people may make major investments such as kitchen and bathroom suites now and plan to install them at some point in the new year, but she advised customers to think carefully about this.

She said individuals would have to make sure they had adequate storage until they could get purchases fitted, noting she had heard "countless tales" of expensive items that had been damaged by being stored in inappropriate locations.

Recent figures from Travis Perkins revealed that sales at Wickes increased by 4.2 per cent in the eight weeks up to November 20th, with "some evidence" of people trying to beat the VAT hike.

Source : Wickes