The industry will return to slow revenue growth after several years of decline
London, United Kingdom (PRWEB) July 19, 2012
Buying the family home is the largest lifetime investment for most Britons and can deliver households with both financial and emotional security. Trends in housing investment have huge implications for the economy and fiscal and monetary policy.
According to IBISWorld industry analyst Anthony Kelly, “the Residential Building Construction industry accounts for the bulk of work done on new housing construction, repairs and improvements”. It also generates revenue from the aligned non-residential building market (notably from work on mixed-use commercial and apartment developments). The industry is forecast to generate revenue of £46.3 billion in 2012-13, a decrease of 8.5% on the previous year and representing an annualised decline of 5.5% over the past five years. Industry value added is estimated at £12.8 billion in 2012-13, representing 1.0% of GDP and an annualised fall of 8.0% over the past five years. Kelly adds, “successive recessions in the general economy and tight lending conditions have driven down demand, though an injection of government stimulus fuelled a short-lived upswing in housing investment during 2010-11”. The value of new housing construction is estimated to fall by an annualised 7.7% over the five years through 2012-13. The number of housing starts will fall by an annualised 10.5%, and spending on repairs and maintenance to existing dwellings is expected to decline by an annualised 0.8%.
The industry is forecast to endure more contractions over the short term, reflecting the impact of weak economic growth and the financial crisis. The eventual upswing of housing investment from 2014-15 will support revenue growth over the five years through 2017-18.
The Residential Building Construction industry has a low level of market share concentration. The four largest homebuilders account for less than 20% of total housing completions and industry revenue. Major companies include Barrat Developments, Taylor Wimpey, Persimmon Homes, Bellway, Berkely Group Holdings and Galliford Try.
For more information on the Residential Building Construction industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
This industry includes contractors undertaking new work, remodelling, renovations and repairs of residential buildings including single-family houses, multi-family buildings (high-rises), and housing association and local authority housing. Work can be carried out on a firm's own account or on a fee or contract basis, and portions of the work or even the whole practical work can be subcontracted out.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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