Market Size of UK Residential Construction Industry
Study Period | 2020 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 185.55 Billion |
Market Size (2029) | USD 207.49 Billion |
CAGR (2024 - 2029) | 2.26 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
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UK Residential Construction Market Analysis
The UK Residential Construction Market size is estimated at USD 185.55 billion in 2024, and is expected to reach USD 207.49 billion by 2029, growing at a CAGR of 2.26% during the forecast period (2024-2029).
- According to market size, the residential building construction sector in the UK is the first-ranked construction sector and the sixth-largest in the country.
- There will be many changes in the housing and building industries in the UK in the future. The government has committed to building 300,000 homes a year, thus it is up to the home builders to complete a variety of projects at a pace they may not be accustomed to. They will therefore need to consider fresh approaches to their work. Modern methods or the adoption of innovative software both can help with efficiency and cost-cutting. The sector needs to be ready for more bureaucracy as a result of the UK government's implementation of new standards and regulatory bodies, which could lengthen project timelines.
- Rising property values indicate greater equity, which increases the likelihood that current homeowners will be able to refinance and buy a new home. This indicates that builders typically obtain a higher yield for the properties they construct. In 2023, it is anticipated that the home price index would rise, helping to boost housing demand and support an increase in contractors' average selling prices.
- Numerous construction enterprises and their workplaces have experienced quick, extraordinary transformation as a result of Covid-19. There is an enormous everyday change that would need to be quantified on an unprecedented scale as a result of the pandemic's profound impact on the ability to work, communicate, and socialize. While other organizations delay their free-flowing motivation, losing efficiency, productivity, and value for money while inexorably escalating the skills shortage, certain businesses are more competent than others at continuing to function successfully.
- According to the UK Government's "Construction 2025" report, two-thirds of construction contracting companies lack innovation, which slows down technical advancement in the industry. Since many site products might have been manufactured and placed on-site using social distancing techniques, this is a common problem that has a negative effect. Industry 4.0 is expected to advance quickly. The term "industry 4.0," which refers to the construction sector's transition to a digital and automated environment, has been coined in the UK.
UK Residential Construction Industry Segmentation
Residential construction includes construction on single-family or two-family dwellings that are occupied or used or are intended to be occupied or used, primarily for residential purposes.
This report aims to provide a detailed analysis of the UK Residential Construction market. Market insights are covered, including market dynamics, drivers, restraints, opportunities, technical innovations, their impact, Porter's Five Forces Analysis, and the COVID-19 pandemic's effects. To comprehend the competitive environment of the market, the research also includes company profiles.
The UK Residential Construction Market is segmented by Type (Villas and Landed Houses and Condominiums and Apartments) and Key Cities (London, Birmingham, Glasgow, Liverpool, and the Rest of the UK). The report offers Market size and forecasts for UK Residential Construction Market in value (USD Million) for all the above segments.
Type | |
Villas and Landed Houses | |
Condominiums and Apartments |
Key Cities | |
London | |
Birmingham | |
Glasgow | |
Liverpool | |
Rest of the UK |
UK Residential Construction Market Size Summary
The UK residential construction market is poised for growth, driven by government initiatives and evolving industry standards. As the leading construction sector in the UK, it faces the challenge of meeting ambitious housing targets set by the government, which aims to build a significant number of homes annually. This demand necessitates the adoption of modern construction methods and innovative technologies to enhance efficiency and reduce costs. The sector is also adapting to new regulatory frameworks and standards, which are expected to impact project timelines. The push towards sustainability, with the government's commitment to achieving Net Zero emissions by 2050, is further shaping the market, encouraging investments in energy-efficient building practices and materials.
Market dynamics are influenced by rising property values, which enhance equity and encourage refinancing and new home purchases. This trend supports higher yields for builders and boosts housing demand. However, the industry faces challenges such as material shortages and increased competition, exacerbated by the impacts of Brexit and the pandemic. The government's financial commitment to the "green industrial revolution" and initiatives like the Future Homes Standard are expected to drive significant changes in building practices, focusing on reducing carbon emissions. As the market becomes more competitive, companies are urged to optimize supply chain management and leverage technology to navigate these challenges effectively.
UK Residential Construction Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Market Dynamics
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1.2.1 Market Drivers
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1.2.2 Market Restraints
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1.2.3 Market Opportunities
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1.3 Insights into Technological Innovation in the Residential Real Estate Sector
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1.4 Government Regulations and Initiatives
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1.5 Supply Chain/Value Chain Analysis
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1.6 Industry Attractiveness - Porters' Five Forces Analysis
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1.6.1 Threat of New Entrants
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1.6.2 Bargaining Power of Buyers
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1.6.3 Bargaining Power of Suppliers
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1.6.4 Threat of Substitutes
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1.6.5 Intensity of Competitive Rivalry
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1.7 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 Type
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2.1.1 Villas and Landed Houses
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2.1.2 Condominiums and Apartments
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2.2 Key Cities
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2.2.1 London
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2.2.2 Birmingham
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2.2.3 Glasgow
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2.2.4 Liverpool
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2.2.5 Rest of the UK
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UK Residential Construction Market Size FAQs
How big is the UK Residential Construction Market?
The UK Residential Construction Market size is expected to reach USD 185.55 billion in 2024 and grow at a CAGR of 2.26% to reach USD 207.49 billion by 2029.
What is the current UK Residential Construction Market size?
In 2024, the UK Residential Construction Market size is expected to reach USD 185.55 billion.