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Home Extensions Market Report - GB 2014-2018 Analysis

Published: 02/12/2014 / Number of Pages: 57 / Price: £745.00

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Introduction and Overview

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.

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.

Report Summary

Home extensions marketThe 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.


List of Report Contents

  1. Contents Listing
  2. 1. INTRODUCTION 6
  3. 1.1 BACKGROUND 6
  4. 1.2 SOURCES OF INFORMATION 6
  5. 2. SUMMARY 8
  6. 2.1 SITUATION ASSESSMENT 8
  7. 2.2 FUTURE PROSPECTS 9
  8. 3. ECONOMIC ENVIRONMENT 11
  9. 3.1 GDP 11
  10. 3.2 INFLATION & INTEREST RATES 12
  11. 3.3 UNEMPLOYMENT 13
  12. 3.4 HOUSEHOLD CONSUMPTION 14
  13. 3.5 HOUSING & CONSTRUCTION 14
  14. 3.6 STERLING 16
  15. 3.7 POPULATION PROFILE 16
  16. 3.8 CONCLUSIONS 17
  17. 4. HOME EXTENSION MARKET 18
  18. 4.1 DEFINITION 18
  19. 4.2 OVERALL MARKET 19
  20. 4.2.1 Overall Planning Decisions 19
  21. 4.2.2 Householder Developments 20
  22. 4.3 REGIONAL ANALYSIS 22
  23. 4.3.1 England 23
  24. 4.3.2 Scotland & Wales 24
  25. 4.4 KEY MARKET INFLUENCES 24
  26. 4.4.1 Legislation - England & Wales 24
  27. 4.4.2 Legislation - Scotland 26
  28. 4.4.3 Established Base of Housing 28
  29. 4.4.4 House Prices 29
  30. 4.4.5 Residential Construction Output 30
  31. 4.4.6 Mortgage Lending and Affordability 31
  32. 4.4.7 Residential Property Transactions 32
  33. 4.4.8 Renewable Energy Technologies 33
  34. 4.4.9 Interior Design Trends 34
  35. 5. TYPES OF HOME EXTENSION 36
  36. 5.1 OVERALL MIX 36
  37. 5.2 SINGLE STOREY BUILDING EXTENSIONS 38
  38. 5.3 TWO STOREY BUILDING EXTENSIONS 39
  39. 5.4 OTHER BUILDING EXTENSIONS 39
  40. 5.5 EXTERNAL BUILDING ALTERATIONS 40
  41. 5.6 INTERNAL BUILDING ALTERATIONS 41
  42. 5.7 OTHER BUILDING PROJECTS 42
  43. 5.7.1 Heating & Ventilation 42
  44. 5.7.2 Landscaping 43
  45. 5.7.3 Roofing 44
  46. 6. KEY PRODUCTS 46
  47. 6.1 PRODUCT DEFINITION 46
  48. 6.2 PRODUCT MIX 46
  49. 6.2.1 Doors & Windows 48
  50. 6.2.2 Plasterboard & Insulation 49
  51. 6.2.3 Bricks, Blocks & Concrete 50
  52. 6.2.4 Roofing 50
  53. 6.2.5 Kitchen Furniture & Appliances 51
  54. 6.2.6 Baths, Showers, Sanitaryware 53
  55. 6.2.7 Decor 56
  1. Tables & Charts
  2. CHART 1 DEVELOPMENTS GRANTED BY PLANNING AUTHORITIES 2009-2014 8
  3. TABLE 2 GDP DATA - 2011-2014 - KEY CONSTITUENT ELEMENTS 11
  4. CHART 3 INTEREST RATES AND INFLATION (CPI) FROM 1994-2018 13
  5. CHART 4 PDI & SAVINGS RATIO AT CURRENT PRICES 1995-2018 14
  6. TABLE 5 EXCHANGE RATE FLUCTUATIONS 2008-2014 - STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 16
  7. CHART 6 NUMBER OF PLANNING DECISIONS GRANTED IN GREAT BRITAIN BY TYPE - MAJOR, MINOR, HOUSEHOLDER 2009-2014 19
  8. TABLE 7 NUMBER OF HOUSEHOLDER DEVELOPMENTS GRANTED IN GREAT BRITAIN 2009-2018 21
  9. CHART 8 NUMBER OF HOUSEHOLDER DEVELOPMENTS GRANTED IN ENGLAND, WALES AND SCOTLAND 2008 TO 2014 22
  10. CHART 9 PLANNING DECISIONS MADE BY REGION - ENGLAND - HOUSEHOLDER DEVELOPMENTS 23
  11. TABLE 10 HOUSING STOCK MIX BY DWELLING TYPE, NUMBER OF BEDROOMS & BATHROOMS GB 28
  12. CHART 11 AVERAGE PRICE OF ALL DWELLINGS UK 2003 - 2014 (£000) 29
  13. CHART 12 RESIDENTIAL CONSTRUCTION OUTPUT NEW WORK AND RMI QUARTERLY ANALYSIS 2011 TO 2013 - BY VALUE (£ BILLION AT CURRENT PRICES) 30
  14. CHART 13 RESIDENTIAL LENDING - REMORTGAGES & OTHER LOANS BY VALUE £000'S 2007-2013 31
  15. CHART 14 NUMBER OF RESIDENTIAL PROPERTY TRANSACTIONS - GB - 2009-2018 33
  16. TABLE 15 MIX OF HOUSEHOLDER DEVELOPMENTS BY TYPE OF PROJECT 2013 (VOLUME - EXTENSIONS, ROOFING, H&V, ETC) 36
  17. TABLE 16 VALUE OF BUILDING EXTENSIONS AND % OF RMI OUTPUT 2009 - 2018 (VALUE £BILLIONS) 37
  18. TABLE 17 MIX OF SINGLE STOREY DEVELOPMENTS BY TYPE OF USE 2013 (VOLUME - KITCHENS, LIVING, BATHROOM, BEDROOM ETC) 38
  19. TABLE 18 MIX OF TWO STOREY DEVELOPMENTS BY TYPE OF USE 2013 (VOLUME - KITCHENS, LIVING, BATHROOM, BEDROOM ETC) 39
  20. TABLE 19 MIX OF OTHER BUILDING EXTENSIONS BY TYPE OF USE 2013 (VOLUME - DORMERS, GARAGE, PORCH, ETC.) 40
  21. CHART 20 EXTERNAL ALTERATIONS MADE TO DWELLINGS 2013 (MIX BY VOLUME - CLADDING, OUTBUILDINGS, DOORS / WINDOWS ETC) 41
  22. CHART 21 INTERNAL ALTERATIONS MADE TO DWELLINGS 2013 (MIX BY VOLUME - DOORWAY, WALLS) 42
  23. CHART 22 HEATING & VENTILATION INSTALLATIONS IN DWELLINGS 2013 (MIX BY VOLUME - AIRCON, SOLAR, BIOMASS, HEAT PUMPS ETC) 43
  24. CHART 23 LANDSCAPING ALTERATIONS MADE TO DWELLINGS 2013 (MIX BY VOLUME - TERRACE, TREES, DRIVEWAYS, ETC.) 44
  25. CHART 24 INSTALLATION OF ROOFING PRODUCTS 2013 (MIX BY VOLUME - ROOF LIGHTS, ROOF COVERINGS) 45
  26. TABLE 25 HOME EXTENSIONS' SHARE OF THE MARKET SECTORS 2013 AT MERCHANT SELLING PRICES 47
  27. CHART 26 BUILDING EXTENSION MARKET PRODUCT MIX 2013 BY VALUE (£M MERCHANT SELLING PRICES) 48
  28. CHART 27 PRODUCT MIX IN THE KITCHEN FURNITURE MARKET 2013 (FURNITURE, WORKTOPS, SINKS) - BY VALUE 53

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