Today, there are some 44,166 businesses operating across the UK’s residential construction industry, generating total revenue to the tune of £78.9 billion, with each business contributing an estimated average revenue of £1.8 million.
As it stands, current market performance remains down when compared to pre-pandemic levels. The number of businesses is down -7.1% while the total market value is down -11.0%, resulting in the average revenue per business also falling by -4.3%.
However, the annual figures suggest that while the residential construction industry is yet to fully return to pre-pandemic health, it’s certainly heading in the right direction.
While the number of total businesses is still some -6.0% fewer than in 2021, total market value and the resulting average revenue per business are both up 18.9% and 26.5% respectively.
Not only are these promising signs for the sector as it stands, but this growth is forecast to continue over the coming years.
Unlatch estimates that the number of active industry businesses within the resi construction industry could increase by 30% by 2025, reaching a total of 57,401.
This increase is also expected to drive total market value to £93.6 billion – an increase of 18.7%.
The only downside to this sector expansion is that with more businesses operating within it, the average revenue per business is expected to decline by -8.7%.
Lee Martin, Head of UK for Unlatch says: “Like many sectors of the property market, the residential construction industry certainly faced a number of challenges as a result of the pandemic. While we’re yet to see a full return to form, there are some very positive signs of growth on an annual basis, with the pandemic market boom helping to drive revenue growth.
“This growth is expected to continue through to 2025 and we predict that the biggest worry facing many in the sector will be an increased level of competition, rather than a dent to their profit margins.
“It’s those who continue to innovate and progress the way we deliver residential property to market that are likely to come out on top, not just with respect to the construction process, but also when streamlining the sales process, benefitting both builder and homebuyer alike.”