United Kingdom Prefabricated Buildings Industry Study - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

United Kingdom Prefabricated Buildings Industry is segmented by Material Type (Concrete, Glass, Metal, Timber and Other Material Types) and Application (Residential, Commercial, and Other Applications (Infrastructure and Industrial))

Market Snapshot

Study Period: 2016 - 2026
Base Year: 2020
CAGR: 4.5 %

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Market Overview

The Prefabricated Building Market in the United Kingdom is expected to grow at a CAGR of approximately 4.5% during the forecast period mainly driven by the increasing investments in the UK’s modular construction sector.

The revenue generated in the UK region by the prefab buildings market amounted to USD 8 billion in the year 2016. It has seen continuous growth during the next 3 years and reached to USD 9 billion in 2019.

The prefab construction market in the United Kingdom is transforming with increasing confidence and capacity in prefabrication construction solutions. The penetration of prefab housing in the United Kingdom is lower, compared to other European countries, such as Sweden or Germany. According to an industrial source, out of the 200,000 homes that are constructed in the country every year, about 15,000 of them are modular.

The modular construction is gaining popularity across the European region, owing to the population growth and shortages in housing. It is gaining momentum as an effective means to build affordable housing. The number of modular homes being constructed are growing in the country and the top construction companies, investors, developers in the country are looking for prefabricated housing solutions. The increasing investments in the UK’s modular construction sector are also boosting the growth of the prefab industry.

As the UK government plans to build around 300,000 new home per year by 2020s to address the challenges in the housing market, prefab construction is expected to play a significant role there. The structure of the housebuilding industry in United Kingdom has also been a challenge for addressing the demand in the housing sector. The small-to-medium sized housebuilders are facing problems from the banks to get loans. This factor and the rising values of land and inflation in construction costs are preventing new companies to enter the market. However, the rise of modular construction, with its reduced costs and build times, is allowing smaller housebuilders to enter the market. Modular construction is acting as an enabler, offering easier entry into housebuilding for the new developers. There are less errors and costly disruptions in Precision-engineered homes.

Due to Covid’19, As the nation shut down to limit the spready of coronavirus, the value of total construction output in April fell to USD 9460 million. There was a 41.2% decrease in new work and a 38.1% decrease in repair & maintenance. New work in private new housing was down 59.2% and private commercial was down 39.7%. construction output in Great Britain fell by a record 18.2%.

Scope of the Report

The United Kingdom Prefabricated Buildings Market covers the growing trends and projects in prefab building markets, like commercial construction, residential construction, industrial construction. The report also covers the industry along the type of material used, like concrete, timber, glass, metal, and other types. Along with the scope of the report also it analyses the key players and the competitive landscape in the United Kingdom Prefabricated Buildings Market. The impact of COVID’19 has also been incorporated and considered during the study.

Material Type
Other Material Types
Other Applications ( Industrial, Institutional, and Infrastructure)

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Key Market Trends

Investments & Initiatives in Infrastructure and Construction Sector to Boost the Industry

The prefab sector in the construction industry is expected to grow during the forecast period driven by the government plans on infrastructure development, housing schemes. As the UK is facing the most severe housing crisis, the government has laid out multiple partnerships to provide homes. 

In 2019, Japan’s biggest housebuilder, Sekisui, entered a venture with the UK government expected to result in thousands of modular homes across the country. In addition, in Jun 2019, the Worthing council gave permission to Ikea to build modular homes on the south coast in a joint venture with the construction firm Skanska. 

The country’s infrastructure pipeline currently has a budget of over USD 745 billion over the next decade, with around USD 55 billion being for housing. Residential construction is expected to grow, with the government announcing a housing stimulus package worth USD 19 billion distributed up to 2023. The USD 37 million investment, which is split into a USD 18.5 million mezzanine and a USD 18.5 million senior facilities, comes from Homes England’s USD 6 billion Home Building Fund. The investment follows a deal for Ilke to provide 750 homes for northern housing giant Places for People.

UK Prefabricated Buildings Market 1

Opportunities in Affordable Housing & Residential Construction to Boost the Prefab market in 2020 and Going Forward

According to the recent report from the charity Shelter, at least 1.2 million homes are needed in order to accommodate younger families who are currently unable to afford ownership but struggle through the expensive and insecure rental market. 

The charity, which presented its recommendations to the government, says USD 13.6 billion a year could come from housing benefit savings which would be made when tenants move from high cost private rental properties to lower rent social housing. 

In 2019, the housing minister announced a USD 37 million investment in Ilke Homes’ modular housing factory to boost production to 5,000 homes a year within five years. While efforts to provide these homes have been made by the government, who committed to building 300,000 homes a year, that goal has consistently not been met, with only 217,000 being built last year. Of these, only 57,485 were affordable. 

Additionally, the total number of on-site starts in England increased by 10% to 61,056. Of these starts, 62% were for affordable rent, a number somewhat undermined by the overall decrease of affordable rentals from 78% in 2014-15 to 66% in 2018-19. Of those sites starts from the last year, only 1,224 were intended for affordable homeownership or 2%. With an increase in population and the dire need for housing, affordable housing be a key trend to boost the prefab industry in the UK.

UK Prefabricated Buildings Market  2

Competitive Landscape

The report covers the major players operating in the United Kingdom Prefabricated Buildings Industry. The market is highly competitive with a few players occupying the major share. The market is fragmented, and the market is expected to grow during the forecast period due to the increase in the prefab construction building investments and up-coming major projects in the country and other few factors are driving the market. 

The two companies, Ilke Homes and Legal & General, has built factories for manufacturing prefab homes. These two companies are transforming the prefabricated housing industry in the country with the production of two and three-bedroom homes that range between GBP 65,000 to GBP 79,000. Ilke Homes said it would produce 2,000 houses a year, reaching eventually to 5,000. The insurance company Legal & General has built a vast factory outside Leeds, which would build 3,500 homes a year. 

Berkley Homes, one of the largest players also announced plans to open a factory in Kent with the aim of producing a thousand homes a year. Recently, Goldman Sachs invested USD 93 million on the TopHat, a leading player in the prefab industry in the UK.

Table of Contents


    1. 1.1 Study Assumptions and Market Definitions

    2. 1.2 Scope of the Study


    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases



    1. 4.1 Current Market Scenario

    2. 4.2 Technological Trends

    3. 4.3 Insights on Supply Chain/Value Chain Analysis of the Prefabricated Buildings Industry

    4. 4.4 Brief on Different Structures Used in the Prefabricated Buildings Industry

    5. 4.5 Cost Structure Analysis of the Prefabricated Buildings Industry

    6. 4.6 Impact of COVID 19


    1. 5.1 Drivers

    2. 5.2 Restraints

    3. 5.3 Opportunitites

    4. 5.4 Porter's Five Forces Analysis

      1. 5.4.1 Bargaining Power of Suppliers

      2. 5.4.2 Bargaining Power of Consumers / Buyers

      3. 5.4.3 Threat of New Entrants

      4. 5.4.4 Threat of Substitute Products

      5. 5.4.5 Intensity of Competitive Rivalry


    1. 6.1 Material Type

      1. 6.1.1 Concrete

      2. 6.1.2 Glass

      3. 6.1.3 Metal

      4. 6.1.4 Timber

      5. 6.1.5 Other Material Types

    2. 6.2 Application

      1. 6.2.1 Residential

      2. 6.2.2 Commercial

      3. 6.2.3 Other Applications ( Industrial, Institutional, and Infrastructure)


    1. 7.1 Overview (Market Concentration and Major Players)

    2. 7.2 Company Profiles




      4. 7.2.4 ILKE HOMES

      5. 7.2.5 BERKLEY GROUP




      9. 7.2.9 KISS HOUSE

      10. 7.2.10 FACIT HOMES

      11. 7.2.11 REDROW

      12. 7.2.12 PHOENIX HOMES

      13. 7.2.13 WEBERHAUS *

    3. *List Not Exhaustive

  9. 9. APPENDIX

    1. 9.1 Marcroeconomic Indicators (GDP breakdown by sector, Contribution of construction to economy, etc.)

    2. 9.2 Key Production, Consumption,Exports & import statistics of construction Materials

**Subject to Availability

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Frequently Asked Questions

The United Kingdom Prefabricated Buildings Industry market is studied from 2016 - 2026.

The United Kingdom Prefabricated Buildings Industry is growing at a CAGR of 4.5% over the next 5 years.

BARRATT DEVELOPMENTS P L C, BELLWAY HOMES LIMITED, ILKE HOMES, BERKLEY GROUP, WEBERHAUS are the major companies operating in United Kingdom Prefabricated Buildings Industry.

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