Market Trends of UK Manufactured Homes Industry
This section covers the major market trends shaping the UK Manufactured Homes Market according to our research experts:
Rapid Urbanization in the Region is Driving the Market
- The UK is one of the most urbanized nations by any measure. In the UK, 84% of the population lived in urban areas in 2021, according to World Bank. This indicates an increase of roughly three percentage points over the previous ten years. Though gradual, the rising trend has consistently been befavourableble.
- 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.
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Increased Demand for Housing in Driving the Market
- In 2021/22 the government of the UK spent approximately GBP 9.6 billion (USD 11.56 billion) on housing development, with the 7.6 billion spent on local authority housing making up the majority of this type of expenditure, as per the industry association. The manufactured Homes industry is anticipated to play a key role there as the UK government planned to build approximately 300,000 new homes per year by 2022 to address the issues in the housing market.
- Additionally, the Worthing council granted Ikea permission to collaborate with the building company Skanska to develop modular homes on the south coast in June 2019. Ilke Homes and Legal & General have each constructed manufactured, prefab, and modular home manufacturing facilities. These two businesses are revolutionizing the nation's manufactured housing market by building two- and three-bedroom homes that cost between GBP 65,000 (USD 78,271) and GBP 79,000 (USD 95,129). Ilke Homes promised to build 2,000 homes a year, eventually increasing that number to 5,000. Legal & General Insurance has constructed a sizable factory.
- Moreover, The market is expanding as the demand for higher-quality, environment-friendly homes rise across the continent, including the United Kingdom. The sector of manufactured construction is anticipated to have a considerable boost with the introduction of additive manufacturing in Europe. Businesses adopt environmentally friendly production methods and products to set themselves apart from the competition. By concentrating on energy efficiency, energy-absorbing materials, such as micro homes, have been introduced.
