Over the past few years, the UK home services industry has grown steadily due to factors like rising property prices, aging housing stock, shifting consumer preferences, and raising awareness of energy efficiency. In this analysis, we will dive into the vital patterns and measurements in the UK home administration industry, including market size, division, development drivers, difficulties, and future standpoints.
Market Size and Segmentation:
The UK home services market is a different and complex industry that incorporates many services, like pipes, electrical, roofing, gardening, cleaning, and jack-of-all-trades services, among others. VMR's report states U.K. Home Services Market was valued at USD 7.49 Billion in 2018 and is predicted to reach USD 13.48 Billion by 2026, increasing at a CAGR of 8.8% from 2019 to 2026. There are three primary types of market segmentation: industrial, commercial, and domestic. With approximately 85% of the market, the domestic segment is the largest, followed by the commercial and industrial segments with the remaining 15%. Repairs and maintenance, which make up about 40% of the domestic market, are the most important subsector, followed by renovations and improvements, which make up about 30%.
Growth Drivers:
A few variables are driving development in the UK home services industry. First, demand for home services is being fueled by rising property prices, which are encouraging more homeowners to make investments in home improvements and renovations. The average house price in the United Kingdom increased by 9.6% in the year to January 2022, reaching a record high of £274,000, according to data from the Office for National Statistics (ONS). Furthermore, the UK has a lot of more established lodging stock, which requires progressing upkeep and fixes to keep it in great shape. As a result, there is an increasing need for home services. British houses have the oldest age profile in the EU, with more than 60% built before 1960 and just slightly more than 10% erected between 1991 and 2010. And the changing consumer preferences are driving the growth of companies that offer comprehensive, one-stop-shop solutions. Customers are looking for home service providers that can handle a variety of tasks, including plumbing, electrical, and gardening, that are both convenient and dependable.
Challenges:
Companies in the UK home services sector need to be aware of a number of obstacles, despite the industry's significant growth opportunities. First, new competitors are constantly entering the market, making the industry more and more competitive. Existing providers are under increasing pressure to differentiate themselves and provide novel services as a result of this. Second, the rising cost of a lot of the materials and resources needed for home services is forcing service providers to carefully manage their costs and pass them on to customers. For instance, the cost of copper in the domestic market, which is utilized in plumbing and electrical work, has expanded by around 55% since March 2020, as per information from the Office of National Statistics (ONS). Thirdly, the home services industry in the UK is governed by a variety of standards and regulations that can be complicated and difficult to understand. To avoid legal issues and damage to their reputation, businesses must ensure that they adhere to all relevant regulations and standards. Last but not least, the UK home services industry is struggling to find and keep talented tradespeople due to a lack of skilled workers. This can prompt postponements and inflated costs for customers.
Future Outlook:
The UK home services industry is expected to continue expanding in the future due to shifting consumer preferences, rising property prices, aging housing stock, and growing awareness of energy efficiency. Notwithstanding, organizations working in this space should know about the difficulties and dangers related to the market, including expanding contests, increasing expenses, administrative consistence, and labour shortage.
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