UK Manufactured Homes Market Analysis by Mordor Intelligence
The UK Manufactured Homes Market is expected to register a CAGR of greater than 4.60% during the forecast period.
The market for manufactured and mobile houses is driven by the popularity of affordable housing among people all over the UK. In 2023, England led the UK in new home construction starts. However, housing starts in England plummeted in the latter half of the year. In contrast, Scotland, Wales, and Northern Ireland experienced more stable figures. Notably, Northern Ireland recorded the fewest new housing constructions for the year.
One significant trend that has supported the growth of the market for manufactured houses is the rising popularity of prefabricated homes. In 2023, the United Kingdom imports of prefabricated buildings amounted close to 387 million British pounds.
Design and construction, body and frame requirements, thermal protection, plumbing, electrical fire safety, and energy efficiency are the main determining factors. Some of the recent technologies that are used in manufactured homes include built-in wireless connectivity, pop-up power strips, keyless entry, and NEST Thermostats.
According to a recent research, if the government follows through on its promise to build 300,000 homes annually, England will spend all of its 1.5C carbon budget on housing alone. By 2050, the housing system would consume 104% of the nation's total carbon budget if new dwellings were constructed at the same rate as existing ones and present efficiency trends continued. The study suggests that more sustainable solutions to the housing crisis include drastically modifying existing homes, reducing the number of second homes, discouraging people from purchasing homes as financial ventures, and forcing people to live in smaller homes.
By 2030, the government has promised to adopt legally binding standards that will require all new initiatives to result in a "biodiversity net gain." Building developments for commercial and residential use constitute a hazard to 24% of the world's threatened species listed on the IUCN Red List. According to the researchers, retrofitting existing stock to make all homes zero carbon by 2050 would save 38% of the total carbon budgets needed to limit global warming to 1.5 degrees Celsius. They also note that this is "by far the most effective policy for reducing housing's conflict with climate targets."
In the UK market, manufactured housing Real Estate Investment Trusts (REITs) are grappling with multiple challenges. For instance, Sun Communities, a player in the UK, confronted economic hurdles in 2023 due to rising inflation and interest rates. These challenges were tied to the UK's broader economic landscape, resulting in notable weaknesses in their internal financial reporting controls. While the latter half of the year showed some stabilization, Sun Communities foresees the persistence of existing volume and margin patterns.
UK Manufactured Homes Market Trends and Insights
Rapid Urbanization in the UK is Driving the Market
The UK is one of the most urbanized nations by any measure. In 2023, the United Kingdom's urbanization rate reached 84.64%, marking a nearly three percentage point rise over the last ten years. While the increase has been gradual, the trend remains steadfastly upward.
Developers and urban planners in the UK are prioritizing the creation of inclusive communities, aiming to make housing accessible across diverse income levels. In London and other cities, local councils are mandating affordable housing quotas in new developments. Simultaneously, they're channeling investments into social infrastructure, encompassing schools, healthcare facilities, and public transport. Striking a balance between affordability and quality living standards is vital for promoting social inclusion and maintaining the accessibility of cities for everyone.
The urban expansion will continue as long as more people are working in offices and service-related businesses. Eight out of every ten people in the UK reside in towns, including more than three in one of the ten major metropolitan regions, according to an industry association. The largest of them is by far the Greater London metropolitan region, which includes the largest port, the largest industrial hub, the most signifcentrecenter for office work, and the nation's capital.
The largest city in the UK and possibly the financial centre of Europe is London. The high cost of living in the city is reflected in the fact that this economic success has resulted in rising rental prices. In England and Wales, London has one of the highest homicide rates. Despite these negatives, London still brings in millions of foreign visitors each year. To accommodate the more and more population shifting towards urban areas, the need for quick and reliable housing is accelerated. People are shifting their focus to manufactured and prefab houses rather than traditional construction. Thus, the demand for manufactured houses is strongly driven by rapid urbanization.
Increased Demand for Single Family Homes Driving the Market
In the UK, the single-family housing (SFH) sector is surging ahead. In 2023, investors poured a record GBP 1.9 billion (USD 2.39 billion) into acquiring or funding over 6,200 homes, marking a dramatic leap from GBP 388 million (USD 4.88 billion) in 2022. Notably, SFH investments constituted just over 40% of the total Build to Rent (BTR) investments.
Currently, the UK boasts just over 26,500 SFH units, with 11,575 operational and another 15,000 either under construction or fully planned. Since 2018, the combined market size of operational and pipeline SFH homes has nearly tripled, underscoring the sector's allure for developers, investors, and lenders. If investors achieve their aspirations, an even swifter growth is on the horizon. A 2023 survey, which included over 50 of the UK's largest investors in sectors like Student Housing, BTR, and Seniors Housing, identified SFH as a prime growth area. A notable 71% of respondents expressed intentions to focus on SFH in the next five years, a significant jump from the 45% currently invested.
Housebuilders' growing openness to collaborate with SFH investors has fueled a rise in investments. In 2023, 71% of transactions were brokered with housebuilders, encompassing both bulk deals on under-construction properties and partnership agreements for future developments.
Competitive Landscape
The UK manufactured homes market is fairly fragmented with the presence of many international and few local players.
Some of the prominent players in the market are Bouygues construction, Lendlease corporation limited, Laing O'Rourke, campion homes, and Timberlogbuild. A number of market players in the manufactured home sectors are drawing potential residents with affordable options. They are committed to making sure that the off-site construction process is closely supervised at all times. The industry's top competitors are utilizing their technical know-how to modify homes to satisfy evolving consumer preferences, particularly in the areas of flooring, cabinets, and external finish.
UK Manufactured Homes Industry Leaders
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Bouygues construction
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Lendlease corporation limited
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Laing O’Rourke
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campion homes
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Timberlogbuild
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- November 2024: Eco Buildings Group PLC announced that it has obtained a letter of intent to sell 10,000 modular homes. This comes after a delegation from the Dominican Republic toured its manufacturing facility in Albania. The London-based producer of prefabricated modular housing revealed that the deal, valued at a gross revenue of USD 237 million, mandates the delivery of the homes over a span of five years.
- November 2024: An investor consortium has acquired POD Space UK, a supplier of modular buildings.
UK Manufactured Homes Market Report Scope
A manufactured home is a structure that is constructed almost entirely in a factory and rests on a permanent chassis. The house is placed on a steel chassis (a supporting frame) and transported to the building site. A manufactured home is one type of factory-built housing.
A complete background analysis of the United Kingdom Manufactured Homes Market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact, is covered in the report.
The UK manufactured homes market is segmented by type (single family and multi-family). The report offers market size and forecasts for UK manufactured homes market in value (USD billion).
| Single Family |
| Multi Family |
| By Type | Single Family |
| Multi Family |
Key Questions Answered in the Report
What is the current UK Manufactured Homes Market size?
The UK Manufactured Homes Market is projected to register a CAGR of greater than 4.60% during the forecast period (2025-2030)
Who are the key players in UK Manufactured Homes Market?
Bouygues construction, Lendlease corporation limited, Laing O’Rourke, campion homes and Timberlogbuild are the major companies operating in the UK Manufactured Homes Market.
What years does this UK Manufactured Homes Market cover?
The report covers the UK Manufactured Homes Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the UK Manufactured Homes Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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UK Manufactured Homes Market Report
Statistics for the 2025 UK Manufactured Homes market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UK Manufactured Homes analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.