Following a period of good annual growth of 7-8% between 2004-08, the UK garden rooms and buildings market fared less favourably in 2009 due to difficult economic conditions and falling numbers of housing transactions. However, growth was supported by the increase in homeworking and relatively immature nature of the market. The market has seen a move towards premium products and customised buildings, with higher quality garden rooms and more added value services. Volume growth has been lower than value growth due to the switch towards more up-market modular garden rooms and timber framed garden buildings - both higher value products. The market for garden rooms and buildings was worth an estimated £150m at retail selling price in 2009, including value added services, e.g. installation.

There are 3 main types of garden buildings: modular garden rooms (accounting for around 38% by value, log cabins at 33% and timber framed buildings at 27%. However, by volume, log cabins are the largest market estimated at over 75%. As the market has developed, there has been an increase in the choice of roof finishes available, e.g. epdm and the provision of different colours, as well as a trend to different shaped garden buildings. Homeworking has increased in popularity in recent years – with around 3.5 million people now working from home to some exten - and this has contributed significantly to sales of garden buildings which offer seclusion from the family home.

Garden rooms and buildings are distributed through a range of different channels including DIY outlets, builders merchants, online / mail order, garden centres and through high street retailers. There are a number of small suppliers operating in the market, often selling direct to customers, but also much larger operators e.g. log cabin suppliers with high volume sales to DIY outlets. Log cabins are usually sold as self-assembly, but other garden buildings such as modular garden rooms and timber framed buildings tend to be sold with installation included.

Future prospects for the market are relatively favourable in 2010 – particularly compared to other higher value consumer durables - and the market is forecast to achieve slightly better growth than in 2009,

Annual growth rates will begin to slow down in the medium term as the market becomes more mature, although growth in real terms will continue to increase. The market is forecast to be worth an estimated £198m in 2013, reflecting steady market growth as a result of the switch to premium products, the trend towards more customising of buildings and increasing focus on value services.

In the medium to long term, market growth in the garden rooms and buildings market will also be stimulated by increases in homeworking and a recovery in the housing market, thus boosting the number of housing transactions. Other favourable influences include improvements in product design and performance, and environmental concerns regarding sustainability