1. Market Research
  2. > Construction
  3. > Building Products Market Trends
  4. > Home Extensions Market Report – GB 2014-2018 Analysis

Home Extensions Market Report – GB 2014-2018 Analysis

  • December 2014
  • -
  • AMA Research
  • -
  • 57 pages

AMA Research are pleased to announce the publication of the 1st edition of the new report 'Home Extensions Market Report – GB 2014-2018 Analysis'. This unique report provides a detailed insight into the home extension market, specifically projects undertaken by householders which require planning permission, e.g. building extensions.

Key areas in the report:

• Overall market for householder developments requiring planning permission – number of developments granted and forecasts to 2018, regional analysis, legislation and key market influences.


• Types of building extensions undertaken - single, two-storey, other building extensions, other alterations such as heating installations, landscaping and roof alterations.


• Products used in the home extensions sector- kitchens, bathrooms and other key building materials, including market value in the home extensions sector and key market trends.

The number of ‘householder developments’ has remained relatively stable over the last 3 years as consumers have focused on improvement work rather than moving house. In 2014, the more buoyant economic situation has positively influenced the number of householder improvements granted by the planning authorities, with an increase of 3% expected in 2014 to 192,500 approved applications. Single storey extensions are estimated to account for the largest share of ‘planned’ home improvement projects with 37%.

Areas of particular interest:

• Review of key trends in the home extension sector - recent developments and market prospects to 2018.


• Key market drivers - including mortgage lending, RMI trends, housing transactions etc.


• Interior design trends - open plan living and influence on the types of products installed.


• Types of extension, function and the mix of products used.


• Regional analysis including the number of developments in England, Scotland and Wales and key trends.



• Key products by value and product and design trends for kitchens, bathrooms, decor, doors and windows, roofing etc.


The report covers the following key areas:

MARKET OVERVIEW - RESIDENTIAL PLANNING APPLICATIONS

• Overall market size by volume 2009-2013 for all planning decisions granted, including major applications, minor applications and householder developments. Forecasts for 2014.


• Market size for planned householder developments granted 2009-2013, including single storey extensions, two-storey, dormer, garage, porch, conservatory, external, internal, H&V / renewables, landscaping and roofing. Forecasts to 2018.


• Key market influences e.g. mortgage lending, established base of housing, residential transactions, house prices, renewable energy technologies, influencing consumer confidence levels.


• Regional analysis for England, Scotland and Wales including the number of householder developments granted and key trends by country.


• Regional analysis for England by area, e.g. South West, including the number of householder developments.


HOME EXTENSION MARKET

• Overall mix of planned householder developments by type of project (by volume) for 2013, e.g. single and two-storey extensions, external building alterations, landscaping, roofing, heating.


• Building extensions - single storey, two-storey, dormer, garage, porch and conservatory.


•External building alterations - doorways, ramps, windows, insulation and render, cladding, security products and the conversion of outbuildings.


• Internal building alterations - internal walls, doorways, alterations to listed buildings etc.


• Heating and ventilation - air conditioning units, renewable energy installations.


• Landscaping - installation of terraces, walls, railings, fences, driveways and tree felling.


• Roofing - roof coverings, roof lights.


• Value of the building extension market 2009-2014. Forecasts to 2018.


• Mix of single and two-storey extensions by type of use, by volume 2013 - e.g. what proportion of single storey planned extensions are for a new kitchen, bathroom, bedrooms and other.


KEY PRODUCTS IN THE HOME EXTENSION SECTOR

• Review of the key products used in the home extension market - including the value of each product group within the home extension sector for: bricks, blocks and concrete; kitchens; bathrooms; decorating materials; insulation and roofing, doors and windows; and plasterboard.

The overall level of planning decisions granted in Great Britain has remained fairly stable over the last 5 years despite the economic uncertainty and relatively low levels of consumer confidence. A steady improvement in the economy and housing market in 2013 had a positive impact for the overall home repair and refurbishment sector, which increased by around 2%. The presently more positive economic outlook also influenced the number of householder improvements granted by the planning authorities, with a slight upturn in 2013.

Factors influencing the home extensions market between 2008 and 2010 include low levels of consumer confidence allied to a financial crisis, leading to lower levels of equity withdrawal following tighter mortgage restrictions. Equity withdrawals had funded a large proportion of major home improvement projects prior to the economic downturn.

In 2010, the market recovered slightly, supported by higher RMI expenditure in the domestic sector. The trend towards ‘improve, don’t move’ benefitted the market for major home improvements and the number of householder developments increased by 7%. In 2010, domestic RMI activity also improved ahead of the VAT increase in January 2011. This impacted positively on major improvements and high ticket items such as kitchens and bathrooms.

However, the economic situation, high inflation and living costs continued to impact the market in 2011 and 2012, with the number of overall developments granted falling by 4% and householder developments falling further by 7% over the two year period.

In terms of regions, England accounted for 89% of householder developments in 2013, up from 87% in 2009. Scotland accounted for 6% and Wales 5%. The majority of householder planning decisions granted were for building extensions, with single and double storey accounting for around half of all projects undertaken.

Single storey extensions were estimated to account for around 37% of householder developments in 2013, with approximately 70,000 applications granted, while two storey extensions were estimated to account for around 13% of householder developments, with approximately 25,000 applications granted. Two storey extensions cover a variety of functions and incorporate a wide range of products including bedrooms, bathrooms, utility rooms, a garage etc., in addition to an extension of the living and kitchen areas.

The nature of the extension can vary from the installation of a new kitchen and open plan living area to a simple utility room and downstairs cloakroom. In 2013, the vast majority incorporated a kitchen and living area. The growth of the trend towards contemporary design has motivated consumers to create a clean and uncluttered look throughout much of their home. This has led to a demand for more open plan arrangements, particularly in existing homes where improvement and redesign is undertaken.

Although the UK economy remains fragile, there is more optimism for a continued recovery in the construction industry and the housing market, along with improving consumer confidence & spending. Low interest rates and rising house prices are encouraging consumers to undertake larger scale home improvements, particularly as there have now been a number of years of deferral of product replacements and home improvements.

Into late 2014 and beyond, average UK house prices are forecast to rise by around 6% in 2014 and thereafter by between 4% and 5% to 2017 driven by the continued economic recovery and prospective rises in average earnings. Rising house prices in the longer term should provide underlying support for the home improvement market, particularly high value improvements such as building extensions.

However, the expectation that interest rates are eventually set to rise in 2015, will exacerbate affordability issues and slow house price growth to around 2-3% by 2018. Consequently, the level of building extensions is expected to achieve modest growth in the medium term, reflecting growing consumer confidence and spending and perhaps a return to the trend of carrying out improvements prior to placing properties on the market.

Affordability issues are the main barrier to growth as banks and building societies require more information regarding borrowers' finances in order to assess their income, outgoings along with potential interest rate increases, before making a decision on how much to lend.

However, it is reasonable to assume that homeowners with good levels of equity and those considered low risk by lenders will continue to undertake improvements, which should provide underlying support for the market. In addition, overall RMI expenditure is expected to achieve a steady rate of growth in the medium term to reach around £28bn by 2018.

Table Of Contents

Home Extensions Market Report - GB 2014-2018 Analysis
1. INTRODUCTION 6
1.1 BACKGROUND 6
1.2 SOURCES OF INFORMATION 6
2. SUMMARY 8
2.1 SITUATION ASSESSMENT 8
2.2 FUTURE PROSPECTS 9
3. ECONOMIC ENVIRONMENT 11
3.1 GDP 11
3.2 INFLATION and INTEREST RATES 12
3.3 UNEMPLOYMENT 13
3.4 HOUSEHOLD CONSUMPTION 14
3.5 HOUSING and CONSTRUCTION 14
3.6 STERLING 16
3.7 POPULATION PROFILE 16
3.8 CONCLUSIONS 17
4. HOME EXTENSION MARKET 18
4.1 DEFINITION 18
4.2 OVERALL MARKET 19
4.2.1 Overall Planning Decisions 19
4.2.2 Householder Developments 20
4.3 REGIONAL ANALYSIS 22
4.3.1 England 23
4.3.2 Scotland and Wales 24
4.4 KEY MARKET INFLUENCES 24
4.4.1 Legislation - England and Wales 24
4.4.2 Legislation - Scotland 26
4.4.3 Established Base of Housing 28
4.4.4 House Prices 29
4.4.5 Residential Construction Output 30
4.4.6 Mortgage Lending and Affordability 31
4.4.7 Residential Property Transactions 32
4.4.8 Renewable Energy Technologies 33
4.4.9 Interior Design Trends 34
5. TYPES OF HOME EXTENSION 36
5.1 OVERALL MIX 36
5.2 SINGLE STOREY BUILDING EXTENSIONS 38
5.3 TWO STOREY BUILDING EXTENSIONS 39
5.4 OTHER BUILDING EXTENSIONS 39
5.5 EXTERNAL BUILDING ALTERATIONS 40
5.6 INTERNAL BUILDING ALTERATIONS 41
5.7 OTHER BUILDING PROJECTS 42
5.7.1 Heating and Ventilation 42
5.7.2 Landscaping 43
5.7.3 Roofing 44
6. KEY PRODUCTS 46
6.1 PRODUCT DEFINITION 46
6.2 PRODUCT MIX 46
6.2.1 Doors and Windows 48
6.2.2 Plasterboard and Insulation 49
6.2.3 Bricks, Blocks and Concrete 50
6.2.4 Roofing 50
6.2.5 Kitchen Furniture and Appliances 51
6.2.6 Baths, Showers, Sanitaryware 53
6.2.7 Decor 56
CHART 1 DEVELOPMENTS GRANTED BY PLANNING AUTHORITIES 2009-2014 8
TABLE 2 GDP DATA - 2011-2014 - KEY CONSTITUENT ELEMENTS 11
CHART 3 INTEREST RATES AND INFLATION (CPI) FROM 1994-2018 13
CHART 4 PDI and SAVINGS RATIO AT CURRENT PRICES 1995-2018 14
TABLE 5 EXCHANGE RATE FLUCTUATIONS 2008-2014 - STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 16
CHART 6 NUMBER OF PLANNING DECISIONS GRANTED IN GREAT BRITAIN BY TYPE - MAJOR, MINOR, HOUSEHOLDER 2009-2014 19
TABLE 7 NUMBER OF HOUSEHOLDER DEVELOPMENTS GRANTED IN GREAT BRITAIN 2009-2018 21
CHART 8 NUMBER OF HOUSEHOLDER DEVELOPMENTS GRANTED IN ENGLAND, WALES AND SCOTLAND 2008 TO 2014 22
CHART 9 PLANNING DECISIONS MADE BY REGION - ENGLAND - HOUSEHOLDER DEVELOPMENTS 23
TABLE 10 HOUSING STOCK MIX BY DWELLING TYPE, NUMBER OF BEDROOMS and BATHROOMS GB 28
CHART 11 AVERAGE PRICE OF ALL DWELLINGS UK 2003 - 2014 (£000) 29
CHART 12 RESIDENTIAL CONSTRUCTION OUTPUT NEW WORK AND RMI QUARTERLY ANALYSIS 2011 TO 2013 - BY VALUE (£ BILLION AT CURRENT PRICES) 30
CHART 13 RESIDENTIAL LENDING - REMORTGAGES and OTHER LOANS BY VALUE £000'S 2007-2013 31
CHART 14 NUMBER OF RESIDENTIAL PROPERTY TRANSACTIONS - GB - 2009-2018 33
TABLE 15 MIX OF HOUSEHOLDER DEVELOPMENTS BY TYPE OF PROJECT 2013 (VOLUME - EXTENSIONS, ROOFING, HandV, ETC) 36
TABLE 16 VALUE OF BUILDING EXTENSIONS AND % OF RMI OUTPUT 2009 - 2018 (VALUE £BILLIONS) 37
TABLE 17 MIX OF SINGLE STOREY DEVELOPMENTS BY TYPE OF USE 2013 (VOLUME - KITCHENS, LIVING, BATHROOM, BEDROOM ETC) 38
TABLE 18 MIX OF TWO STOREY DEVELOPMENTS BY TYPE OF USE 2013 (VOLUME - KITCHENS, LIVING, BATHROOM, BEDROOM ETC) 39
TABLE 19 MIX OF OTHER BUILDING EXTENSIONS BY TYPE OF USE 2013 (VOLUME - DORMERS, GARAGE, PORCH, ETC.) 40
CHART 20 EXTERNAL ALTERATIONS MADE TO DWELLINGS 2013 (MIX BY VOLUME - CLADDING, OUTBUILDINGS, DOORS / WINDOWS ETC) 41
CHART 21 INTERNAL ALTERATIONS MADE TO DWELLINGS 2013 (MIX BY VOLUME - DOORWAY, WALLS) 42
CHART 22 HEATING and VENTILATION INSTALLATIONS IN DWELLINGS 2013 (MIX BY VOLUME - AIRCON, SOLAR, BIOMASS, HEAT PUMPS ETC) 43
CHART 23 LANDSCAPING ALTERATIONS MADE TO DWELLINGS 2013 (MIX BY VOLUME - TERRACE, TREES, DRIVEWAYS, ETC.) 44
CHART 24 INSTALLATION OF ROOFING PRODUCTS 2013 (MIX BY VOLUME - ROOF LIGHTS, ROOF COVERINGS) 45
TABLE 25 HOME EXTENSIONS' SHARE OF THE MARKET SECTORS 2013 AT MERCHANT SELLING PRICES 47
CHART 26 BUILDING EXTENSION MARKET PRODUCT MIX 2013 BY VALUE (£M MERCHANT SELLING PRICES) 48
CHART 27 PRODUCT MIX IN THE KITCHEN FURNITURE MARKET 2013 (FURNITURE, WORKTOPS, SINKS) - BY VALUE 53

View This Report »

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 24 Million searchable statistics with tables, figures & datasets
  • More than 10,000 trusted sources
24/7 Customer Support

Talk to Veronica

+1 718 514 2762

Purchase Reports From Reputable Market Research Publishers
Sandwich Panels in Europe

Sandwich Panels in Europe

  • $ 28600
  • Industry report
  • September 2016
  • by Interconnection Consulting Group

The report IC Market Tracking Sandwich Panels analyzes the market of Sandwich Panels and the manufacturers. You get an overview of the development of the total market and the individual segments for example ...

Aluminium Foil Markets in the World to 2020 - Market Size, Development, and Forecasts

Aluminium Foil Markets in the World to 2020 - Market Size, Development, and Forecasts

  • $ 20469
  • Industry report
  • September 2016
  • by Global Research & Data Services

The expansion of the global aluminium foil industry is forecast to reach 5.9% p.a. in the coming years. Between 2009 and 2015 the market increased with an average annual growth of 8.2%. Currently, backed ...

Aluminium Wire Markets in the World to 2020 - Market Size, Development, and Forecasts

Aluminium Wire Markets in the World to 2020 - Market Size, Development, and Forecasts

  • $ 20469
  • Industry report
  • September 2016
  • by Global Research & Data Services

The expansion of the global aluminium wire industry is forecast to reach 1.8% p.a. in the coming years. Between 2009 and 2015 the market increased with an average annual growth of 1.8%. Currently, aluminium ...


ref:plp2014

Reportlinker.com © Copyright 2016. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.