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Flooring sector receives boost from Payment Protection Insurance

The well-publicised scandal that hit UK banks regarding the mis-selling of PPI insurance to customers, and the subsequent reclaiming of these payments, has had an unexpected benefit to the flooring retail sector.

At the beginning of the month, the Royal Bank of Scotland set aside an extra £465m to cope with the demand for compensation claims, taking its total provision to £3.1bn.

After consumer outrage had passed, the successful claimants of compensation found that they had something of a windfall, and signs indicate that this is being spent across many sectors. It is indeed estimated that this money has added 1% to the UK’s GDP.

A survey by VoucherCodesPro.co.uk found that of the £13.3bn that has landed in the bank accounts of UK consumers, 13% of families had utilised the money to make improvements to their home, spending the compensation in the interiors sector.

Indeed, home improvements were found to be the fifth most popular response when families were asked how they would choose to spend the money. The figures indicate that the interiors sector has seen a £1.7bn boost to profits – whether it is for conversions, furnishings, solid wood or laminate flooring. From Cheshire to Cambridge and beyond, consumers are utilising the extra money to add value to their homes.

The survey goes on to suggest that with home improvements lying fifth in the rankings, the most popular use of the reclaimed PPI was to go on holiday. It was also found that 12% specifically set the money aside for savings and 17% used it to pay bills.

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