UK Residential Construction Market Size

UK Residential Construction Market Analysis

The UK Residential Construction Market size is estimated at USD 185.55 billion in 2024, and is expected to reach USD 207.49 billion by 2029, growing at a CAGR of 2.26% during the forecast period (2024-2029).

• According to market size, the residential building construction sector in the UK is the first-ranked construction sector and the sixth-largest in the country.
• There will be many changes in the housing and building industries in the UK in the future. The government has committed to building 300,000 homes a year, thus it is up to the home builders to complete a variety of projects at a pace they may not be accustomed to. They will therefore need to consider fresh approaches to their work. Modern methods or the adoption of innovative software both can help with efficiency and cost-cutting. The sector needs to be ready for more bureaucracy as a result of the UK government's implementation of new standards and regulatory bodies, which could lengthen project timelines.
• Rising property values indicate greater equity, which increases the likelihood that current homeowners will be able to refinance and buy a new home. This indicates that builders typically obtain a higher yield for the properties they construct. In 2023, it is anticipated that the home price index would rise, helping to boost housing demand and support an increase in contractors' average selling prices.
• Numerous construction enterprises and their workplaces have experienced quick, extraordinary transformation as a result of Covid-19. There is an enormous everyday change that would need to be quantified on an unprecedented scale as a result of the pandemic's profound impact on the ability to work, communicate, and socialize. While other organizations delay their free-flowing motivation, losing efficiency, productivity, and value for money while inexorably escalating the skills shortage, certain businesses are more competent than others at continuing to function successfully.
• According to the UK Government's "Construction 2025" report, two-thirds of construction contracting companies lack innovation, which slows down technical advancement in the industry. Since many site products might have been manufactured and placed on-site using social distancing techniques, this is a common problem that has a negative effect. Industry 4.0 is expected to advance quickly. The term "industry 4.0," which refers to the construction sector's transition to a digital and automated environment, has been coined in the UK.