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Coronavirus: Lockdown spurs savings for home improvements and holidays

·3-min read
Many Brits are putting their savings towards home improvements. Photo: Getty
Many Brits are putting their savings towards home improvements. Photo: Getty

Brits, stuck at home during the current lockdown, are saving money for home improvements and travel once restrictions ease, according to a study by MoneySuperMarket.

It found 50% of Brits are committed to saving as much money as possible and will not spend on unnecessary purchases, while 25% are focussing on making ends meet.

Around a quarter are using lockdown to invest in their homes (26%) and to save money for a holiday (24%).

Of those saving for a break, 26% are planning to splurge on a more lavish holiday than usual. 53% want to spend a similar amount as their usual holiday budget, and nearly one in five (17%) expect a more modest holiday than normal.

Comparing the current national lockdown with previous ones, the report found nearly two-fifths (39%) intend to spend less during this lockdown across the board.

Nearly half (46%) of Brits are planning to save the money they would have otherwise spent on day-to-day expenses.

A third will decrease their spending on takeaways (36%) and alcohol (32%). And 22% will spend less on entertainment and 20% will spend less on food.

At the same time, nearly one-fifth (17%) are going to treat themselves and their families more than they did in previous lockdowns to make “the experience as bearable as possible.”

Some 16% said they will invest in stocks, shares or other assets.

Asked about how their general attitude to money has changed since lockdowns started, nearly half (47%) say they’re more careful about saving money than before because “you never know what’s round the corner.”

Brits that are able to save cite building a rainy-day fund (34%), living more comfortably (30%) and anxiety about the future (25%) as their top three motivations for saving.

A quarter (23%) were looking forward to restrictions easing so that they can spend freely again as they have missed shopping in stores.

READ MORE: UK lockdown sends economy spiralling at sharpest rate since last May

£1,597 ($2,179) is the average net amount saved by respondents since March 2020, when the first lockdown was announced.

Men have saved over £400 more (£1,814) than women (£1,389).

Compared with previous lockdowns there is a small increase in Brits buying supermarkets’ own brand products, which are usually cheaper, up from 18% in the first lockdown to 24% in the current one.

Sally Francis-Miles, money spokesperson at MoneySuperMarket, said that “lockdown three has been financially positive for many that have continued to work throughout the pandemic. Those that fall into this group have saved hundreds every month on commuting costs, lunches out and living expenses. These savings, and more time at home, have led many to make home improvements or plan future trips away.”

She added that making a budget and a long-term financial plan is a great way to spend some spare hours at home.

“It allows you to see what you have coming in and going out, as well as if there are ways you could cut household bills. For example, switching your car insurance could save you up to £280. Not a sum to be dismissed and that’s just from one outgoing,” she said.

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