Posted on 23 November, 2016More people than ever are moving house as a result of favourable mortgage rates. What does this means for marketers?
As 2016 draws to a close it seems that record numbers of people might be on the move as the cost of a mortgage reaches an historic low for both first time buyers and home movers, now down to 17.7 and 17.8 per cent of household costs respectively. The Council of Mortgage Lenders has said that the reduction in the base rate in August has provoked a significant increase in mortgage applications; the highest amount since September 2007.
Moreover, this increase in home moves could be maintained as a result of a proposed overhaul of the conveyancing process by The Conveyancing Association. The recommended digital portal would make buying a house much easier, more transparent and stress free. As part of this the body also wants to introduce a legal commitment to accompany offering on a house. It is thought that this would reduce the number of sales that fall through before exchange – currently only two thirds of offers make it all the way through to completion, one of the lowest rates in Europe.
It is thought that if these proposals go ahead they could be implemented as early as 2018, which coincidentally is also when GDPR is scheduled to take affect. If so, this could have a profound impact on UK businesses. GDPR makes it much harder for organisations to market their products and services directly to potential customers. Prospects must opt-in to receive marketing communications. Consequently, the relationships held with existing customers will become even more valuable. But if more people are moving house then it stands to reason that more people in a given organisation’s customer base will be moving house. This means that unless the customer informs the organisation of their impending relocation then that valuable relationship is lost to them. The focus come 2018 will therefore be on keeping track of permissioned contacts no matter if they move house. Products such as Smartlink do just this – enabling marketers to find customers that have moved home but failed to inform them of their new address. For further information please don’t hesitate to give us a call on 01274 5338888