A new market analysis by Unlatch, predicts that the UK’s residential construction industry could increase in value by almost 20% by 2025.
Currently, 44,166 businesses are functioning in the UK’s residential construction industry. These have a total revenue of £78.9 billion, as each business has an average revenue of £1.8 million.
Comparisons to pre-pandemic levels
Compared to pre-pandemic levels, current market performance remains down. The total market value is down -11.0 which results in the average revenue per business falling by -4.3%.
The number of businesses is down -7.1%. The residential construction industry has not fully recovered, there has been a drastic improvement.
Although there are -6% fewer businesses than in 2021, the total market value is up 18.9% and the resulting average revenue per business is up 26.5%.
Unlatch also forecast continuing growth over the coming years. The residential construction industry could increase by 30% by 2025 and reach 57,401. This would bring the total market value up to an 18.7% increase of £93.6 billion.
Yet with more businesses operating in the sector, the average revenue per business is expected to decline by -8.7%.
Lee Martin, head of UK for Unlatch says: “Like many sectors of the property market, the residential construction industry certainly faced a number of challenges as a result of the pandemic. While we’re yet to see a full return to form, there are some very positive signs of growth on an annual basis, with the pandemic market boom helping to drive revenue growth.”
“This growth is expected to continue through to 2025 and we predict that the biggest worry facing many in the sector will be an increased level of competition, rather than a dent to their profit margins.”
“It’s those who continue to innovate and progress the way we deliver residential property to market that are likely to come out on top, not just with respect to the construction process, but also when streamlining the sales process, benefitting both builder and homebuyer alike.”
