Safe as houses: Uncertainty is expected to be mitigated by government support, resulting in steady growth

The Residential Building Construction industry has performed well over the past five-year period, supported by government policy initiatives intended to stimulate the housing market. During the economic downturn, revenue declined rapidly as tight lending criteria and dwindling equity made it difficult for many people to obtain mortgages and discouraged home improvement. However, demand for housing has since risen as economic conditions have improved, indicative of the procyclical nature of the industry. Sharp house price inflation encouraged spending on renovation and maintenance, while the construction of new properties has only been limited by supply constraints, such as a lack of suitable land for building and shortage of skilled more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Despite market uncertainty, support from the government is expected to sustain growth
  • Operators have stated that government support has been the main reason for strong recent performance
  • Government funding commitments are anticipated to support industry performance in the coming years
  • Industry Report - Industry Key Buyers Chapter

    The Residential Building Construction industry has a low level of market share concentration. The four largest UK housebuilders – Barratt Developments, Taylor Wimpey, Persimmon and Bellway – are estimated to account for 21.9% of industry revenue in 2018-19. Although these operators tend to focus operations in a distinct region, they provide services on a much wider scale than the majority of UK residential construction contractors. Additionally, industry incumbents may have long-term construction and maintenance arrangements with the former Homes and Communities Agency, now Homes England, or registered social landlords that means they can sustain a secure avenue for revenue. Lar...purchase to read more.

    Additional Insights for the Residential Building Construction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Residential Building Construction Industry are

  • Access to highly skilled workforce
  • Ability to expand and curtail operations rapidly in line with market demand
  • Membership of an industry organisation
  • IBISWorld analysts also discuss how external factors such as Housing starts and House price index in the Residential Building Construction industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Residential Building Construction Industry?

    This industry includes contractors undertaking new work, remodelling, renovations and repairs to residential buildings, including single-family houses, high-rise apartment blocks and housing association and local authority housing. Work can be carried out on a firm’s own account or on a fee or contract basis, and portions of the work or all practical work can be subcontracted out.

    Industry Products
  • New single-unit housing
  • Repair, renovation and remodelling
  • New flats
  • Industry Activities
  • Constructing new single-family and multi-family housing
  • Constructing multi-unit housing association buildings
  • Renovating, remodelling and repairing existing residential buildings
  • Constructing residential buildings on own land for later sale
  • Constructing residential buildings on land owned by others
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Housing starts
  • House price index
  • Number of residential property transactions
  • Consumer confidence index
  • Mortgage rate

  • Current Performance
  • Initial recovery
  • Government initiatives
  • Capital decline
  • Chart: Revenue Growth

  • Industry Outlook
  • Housing market
  • Existing operators
  • Council investment
  • Table: Residential Building Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Residential Building Construction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Building Project Development
  • Banks
  • Building Societies
  • Real Estate Investment Trust Activities
  • Consumers

  • Key Selling Industries
  • Construction Supplies Wholesaling
  • Hardware, Plumbing & Heating Equipment Wholesaling
  • Mining, Construction & Civil Engineering Machinery Wholesaling
  • Ready-Mixed Concrete Manufacturing
  • Site Preparation

  • Products & Services
  • New single-unit housing
  • Repair, renovation and remodelling
  • New flats
  • Chart: Residential Building Construction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Property developers
  • Private homeowners
  • Housing associations
  • Local authorities
  • Chart: Major Market Segmentation for the Residential Building Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Subcontractor payments
  • Purchases
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Residential Building Construction

  • Basis of Competition
  • International competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Residential Building Construction Industry

  • Industry Globalization
    Barratt Developments plc, Taylor Wimpey UK Limited, Persimmon plc,
  • Table: Barratt Developments plc - financial performance
  • Table: Taylor Wimpey UK Limited - financial performance
  • Table: Persimmon plc - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Residential Building Construction Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Residential Building Construction Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Homes And Communities Agency (Hca)
  • The former national housing and regeneration delivery agency for England and predecessor to Homes England, established by the Housing and Regeneration Act 2008 to fund new affordable housing.
  • Housing Starts
  • The number of new houses begun during a particular period.
  • Registered Social Landlord
  • An independent housing organisation registered under the Housing Act 1996. They are typically registered charities or companies.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Residential Building Construction market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Residential Building Construction:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Residential Building Construction market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Residential Building Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Would you like to speak to an IBISWorld representative?