Economy boost to entice spending

[10 July] This week Chancellor Rishi Sunak made a welcome announcement to MPs regarding a further range of economic assistance packages, including VAT cuts and a freeze on stamp duty. Also announced was a bonus scheme to encourage employers to end furloughs and reemploy staff, a discount on eating out and a £2bn package to boost employment prospects for young people.

There are few industries and households who haven’t felt the financial effects of the Coronavirus pandemic. From increased household shopping bills to furloughed staff, Tourism NI estimates that two-thirds of families across the island of Ireland are already, or expecting to, experiencing a loss in income. Few industries were unaffected by the pandemic either, with the Office of National Statistics Index of Services for April 2020 showing accommodation and food industries declined by 88% YoY. The latest announcements from the Chancellor aim to kick-start the economy, particularly the hard-hit hospitality industry. Changes to VAT in the hospitality trade is something that has been lobbied hard for in recent years, and it’s hoped that the cuts will enable businesses to continue trading and customers will return.

Covid-19 and the property market

Local property experts, PropertyPal, released its insights into how Covid-19 has shaped the property market in NI. With the announcement linked to Stamp Duty, it’s clear the Chancellor wants to boost the sector, however in Northern Ireland it appears that there is little change in the overall volume of buyers – “one in five people who intended to purchase a property in 2020 pre Covid-19 no longer intend to do so. However, in contrast, one in four of those who did not intend to buy a property in 2020 pre Covid-19, now intend to buy” was a key finding of the report. Offering homebuyers a large incentive in the form of a stamp duty holiday could further entice buyers to consider a property move. What people look for in a home has changed in recent months, with people seeking better internet connectivity, closer links to family and more outdoor space.

Out of Home has a clear role to play in the rebuilding of the economy. Bars and restaurants will rely more heavily on pre-bookings than ever before, and Digital OOH in particular is well placed to act as a strong footfall driver. Proximity targeting, frequent copy changes and a clear call to action are common on these formats. Dynamic OOH has a huge untapped potential for the property market too, with screens capable of delivering live market information such as average property value, or properties for sale within the catchment of a DOOH screen.