Market Trends of UK Residential Construction Industry
This section covers the major market trends shaping the UK Residential Construction Market according to our research experts:
Government mandates pertaining to Energy Efficiency
The building sector will be impacted by the UK government's goal of achieving Net Zero greenhouse gas emissions by 2050. Businesses throughout the UK must achieve their Net Zero goals. The UK government has set aside GBP 26 billion (USD 32.24 billion) for investments in the "green industrial revolution" to realize the Net Zero Strategy. By 2030, this approach is expected to leverage up to GBP 90 billion (USD 107.82 billion) in private investment, support up to 190,000 employees by 2025, and 440,000 jobs by 2030. This investment will probably keep opening up new chances for the industry.
Approximately GBP 9.6 billion (~USD 12 billion) were spent on housing development by the UK government in the years 2021-2022, with 7.6 billion of that amount going toward local authority housing. The government released the findings of its "Future Homes Standard" consultation at the start of 2021. This sought to alter laws to increase the energy efficiency of new homes. According to the new Future Homes Standard, starting in 2025, all new homes will have 75-80% fewer carbon emissions than those provided by the law. Homes constructed after 2022 will emit 31% less carbon. The government will have consultations in 2023 over the technical details of the Future Homes Standard. Before the Regulations take effect in 2025, they will undergo another change.
It should go without saying that this illustrates a significant shift in the future of housing and building in the UK. To ensure that new homes are constructed by the new energy efficiency standards, eco-energy experts are creating blueprints.
Rise In Residential Housing Market
Historically, stamp duty is typically paid on homes worth more than £125,000 (USD 155,000). The government has, however, raised this threshold to include homes worth more than £500,000 in the past year. This could be a factor in the "great demand" for homes, which would raise the price of construction work on UK residences. The number of projects being done for new construction and renovations has resulted in a sharp rise in demand for basic materials like concrete and wood. According to reports, the prices of steel, bricks, and timber have seen unprecedented increases. The combined effects of Brexit and the pandemic have made this worse.
For home builders, the addition of new projects is great, but the competition for materials will lengthen the time it takes for them to be finished. This indicates that businesses need to pay closer attention to how they manage their supply networks. Managers can have the most recent information available by using the appropriate software, such as EasyBuild, which is highly beneficial in reducing the danger of material shortages.
