The Federation of Small Businesses (FSB) says that business confidence has worsened over the second quarter of 2010 and they suggest that the recovery is still fragile. In a survey of over 1,200 members of The Federation of Small Businesses (FSB), only a net 4% of respondents believe that business prospects will improve in the third quarter of the year, down from 16% in March.

However, there is evidence that some confidence is returning to the housing market, despite a small drop in prices in July. Latest mortgage lending figures have risen in recent months. According to the Council of Mortgage Lenders (CML), gross lending, which includes lending to people remortgaging as well as house buyers, rose by 15% in June to £13.1 bn.

The level of unemployment has dropped; according to the Office for National Statistics (ONS) the number of people unemployed in the UK fell by 49,000 to 2.46 million in the three months to June. The decline in the jobless total was the biggest drop in three years.

If you add to this fact that housebuilders are at last reporting an upward trend in sales then these are all encouraging signs for quality retailers in the kbb sector.

A new kitchen or bathroom remains the most popular way to improve a home, (it’s still cheaper than moving) and make it a more desirable property to potential buyers, but for those who are now thinking of selling, a new kitchen can often sell the house. When house sales improve then undoubtedly more kitchens, bathrooms and bedrooms will be sold.

The economic climate has been tough and we have seen the number of insolvencies rise and some high profile names in the KBB sector have disappeared. This has made consumers more cautious and KBB retailers are well placed to service those consumers who want to improve their home and are looking for high quality, value for money and more importantly, peace of mind.

A further positive development for the small businesses that operate in the KBB sector is the announcement that the government is finally going to tackle the excess of time consuming red tape.

The Coalition Government has launched the ‘Your Freedom’ website which aims to give the public and business owners the chance to nominate the laws they would like to see abolished and also asks which regulations should be removed to make running a business easier.

Our members say that regulation is one of the biggest barriers to growth and we are encouraging all of our members to give their opinions and tell the government what regulation they would like to see removed.

For further information, please go to the KBSA website at www.kbsa.org.uk

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