The current sluggish property market in the UK has led to an increase in demand for American-style property stagers by wealthy homeowners. Property staging, a popular practice in the US showcased in shows like Selling Sunset, involves dressing up houses with fashionable furniture, artwork, and soft furnishings to attract buyers quickly. While this phenomenon is relatively new in the UK, one designer has witnessed a 51% increase in demand this year.
- Background:
- Home staging, where professionals enhance a property’s appearance with stylish furniture, art, and other touches, has been a hit in the US and featured in the Netflix show Selling Sunset.
- In the UK, this trend is catching on, with a significant increase in demand observed recently.
- Why is it popular now?
- The UK property market is slowing down. Houses, especially those priced over £1m, are struggling to attract buyers as the market dips.
- To paint a picture, house prices dropped in July more than any time since 2009. Also, homes took about 49 days on average to receive an offer in May, which is quite a long wait, the longest since 2013 if you exclude the pandemic period.
- Who are these ‘stagers’?
- Sophia Cramer, an ex-estate agent, established her staging company, Inner Pieces, in 2019. She decorates homes to help them sell faster.
- Homeowners can rent furniture from her for about three months. The cost of these decoration packages can start at around £2,000.
- While she has staged homes worth up to £25m, the typical range of houses she stages are valued between £1m and £2m.
- Business Perspective:
- Flyp, a property platform, sees home staging as a beneficial tactic for homeowners. They front the cost of decorating a home and then take a percentage of any profit made above the house’s initial valuation when it sells.
- Their investment in staging a property ranges between £5,000 to £50,000, and sometimes even £100,000 for homes needing more work. They’re currently taking on around 30 projects each month.
- Flyp’s unique approach differs from traditional staging. Instead of homeowners paying continuously if their property doesn’t sell, Flyp shares the risk.
- If a staged house remains unsold for an extended period, it might be rented out for short durations.
- Quote of the Day: Oliver Gershfield, co-founder of Flyp, noted that homeowners currently lack the knowledge to make the most out of selling their homes, especially in this challenging market. He recalls the days when any property would quickly sell, but times have changed, “People who don’t want to sell something on the cheap are exploring options. A year or so ago you could put literally any property on portals in any condition and it would sell in ten minutes. We’re not there anymore.”
Summary
Due to a slowing housing market in the UK, homeowners, especially those with expensive properties, are hiring professionals to spruce up their homes and make them more attractive to potential buyers. This trend, called home staging, is becoming increasingly popular as homes now take longer to sell than before. Some companies even offer to cover the cost of staging, hoping to share in the profit when the house sells. In essence, if you’re trying to sell your house in this tricky market, making it look its best can give you an edge!