It is important to look around when considering UK furniture prices. There are certain times of the year when prices are reduced, and you can usually find a wider selection. These times of the year usually revolve around major holidays. It is important to shop around before making a final decision, as you may be able to save even more money if you shop online and compare prices from different retailers.
Cost of living crisis
As the cost of living increases, the average household income is not keeping pace with the increase. This is known as a 'cost of living crisis' and can lead to serious financial problems. Rising prices of everyday essentials like food, clothing and home furnishings can make it difficult for people to pay their bills. For many, this can mean making difficult decisions or making cuts to their budget.
According to Helen Dickinson, chief executive of the British Retail Consortium, the country is in the midst of a "cost of living crisis." The record inflation is damaging consumer confidence and putting the brakes on household spending. Consumers put off discretionary spending because they are worried about the future. The impact on the retail sector has been particularly severe, with the sale of white goods suffering most. Fortunately, other sectors, such as food, have held up better.
Increasing costs of materials
The UK furniture industry is facing an unprecedented cost rise due to the increasing costs of materials used in the manufacturing process. According to the British Furniture Manufacturers' association (BFM), 81% of manufacturers have already seen a rise in raw material prices this year and expect further increases through 2020. This has resulted in a rise in the cost of most components and materials used in the manufacturing process.
The increasing costs of timber and other raw materials are already causing furniture prices to rise. The latest figures from the industry show that the cost of timber has increased by 17% in March. The war in Ukraine has also caused challenges for wood importers.
Increase in shipping container costs
An increase in shipping container costs for UK furniture prices is a major concern for retailers and manufacturers. However, the rising cost of shipping is still a small percentage of the total price. Earlier this year, Logistics UK reported that the cost of importing containers from China had increased by as much as eight hundred percent. The company said that global factors, including the recent pandemic, are contributing to the increase in shipping costs. Furniture salesman Pearse Dynes called the increase in costs a "worldwide crisis". He said that his furniture is manufactured in County Armagh and is charged a maximum of $300 for local delivery.
Container shipping rates have never been as high. A 40ft container shipped from Shanghai to Rotterdam cost $13,653 last week – a five-fold increase since mid-2020. Prices have also soared on the Shanghai-Genoa route, soaring 2% this month to $12,993 per 40ft container. In addition, the rate from Shanghai to Los Angeles has hit $16,322 per 40ft box. The Suez Canal blockade has also exposed vulnerabilities in shipping and has driven up the cost of shipping containers.
Increase in raw-material costs
Recent rises in raw-material costs for UK furniture manufacturers are having an impact on furniture prices. The British Furniture Manufacturers' Association reported that more than eighty per cent of respondents were experiencing increases in their costs, and that most predicted further increases as we approach Christmas. Similarly, the costs for most components, such as springs, mechanisms and fabrics, have increased.
As a result, the price of UK furniture has increased by up to twelve percent, with an increase of more than eight percent in some cases. The rises are due in part to the fall of sterling against both the euro and the dollar. The currency has dropped nearly 16 percent this year compared to last year, when it traded sixteen percent higher.
Increase in retail price of furniture
The price of furniture in the UK as seen on furnitureprices.co.uk is on the rise again. The rise is due in part to the war in Iraq, which is raising the cost of materials used to produce furniture. These materials include steel, wood, fibre, and foam. During the last twelve months, the cost of these materials increased by 9.9%. As a result, the cost of buying furniture has gone up by 15.6% in the UK.
The British furniture industry has called on the Chancellor to extend government aid for the industry, which supports 330,000 jobs and over EUR 17 billion in annual consumer expenditure. To keep the industry afloat, the Chancellor must extend the business rates holiday and VAT deferral period to June 2021.