Bathroom Installation Frames - UK 2016-2020 - Key Facts

• The Bathroom Installation Frames and Systems Market has grown by 39% in the last 4 years. 
• The WC frames sub-sector dominates the market with a share of over 80%. 
• The growth of wall hung sanitaryware to around 22% of the market is supporting growth in the frames market. 
• The market is led by Geberit, and the top 5 suppliers have over 50% of the market.
• Merchants and distributors represent the major route to market taken by manufacturers.

These facts have been extracted from AMA Research's report 'Bathroom Installation Frames and Systems Market Report - UK 2016-2020 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724.

Contract Floorcoverings - UK 2016-2020 - Key Facts

• Contract floorcoverings sales reached a low point in 2011, but have subsequently grown by 7% to reach an estimated £950m in 2015. 
• The market has evolved over the last decade in terms of both specifications and product mix, with trend away from carpet to “smooth” floorcoverings with greater integration of floorcoverings types within a single installation.
• Modular floorcoverings have risen to prominence over the last decade, initially through carpet tiles but more recently encompassing vinyl tiles (particularly LVT).
• Contract vinyl has been at the forefront of product innovation in recent years with the development of a wide range of sector specific products.
• Key issue for suppliers of contract floorcoverings remains the ongoing capability to compete, particularly given the development of larger floorcoverings groups in recent years.

These facts have been extracted from AMA Research's report 'Contract Floorcoverings Market Report - UK 2016-2020 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724.

Bathroom and Kitchen PODs - UK 2015-2019 - Key Facts

• The bathroom and kitchen pods market had an estimated value of over £135m at MSP in 2015 - up around 25% on 2013 levels.
• The prefabricated pods market is dominated by shower-room pods (50%), with bathroom and kitchen pods accounting for the balance.
• GRP, composite and steel frame pods account for a combined share of over 75% of the market.
• In terms of end use applications, student accommodation accounts for over 25% of the market, with the sector offering good growth opportunities.
• The Top 3 suppliers account for a combined share of around 50% of the market.

These facts have been extracted from AMA Research's report 'Bathroom and Kitchen PODs Market Report - UK 2015-2019 Analysis', available fromwww.amaresearch.co.uk or by calling 01242 235724

Furniture Fittings - UK 2016-2020 - Key Facts

• The UK Market for Furniture Fittings is expected to grow by 25% over the next 5 years.
• Furniture fittings account for around 16% of the overall kitchen furniture market.
• Hinges form the major product sector, with sales estimated to account for 37% of the market.
• Distributors account for the bulk of the market, with a share of over half.
• Interior fittings are a growing sector of the market and account for some 28% of the market.

These facts have been extracted from AMA Research's report 'Furniture Fittings Market Report - UK 2016-2020 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724

UK private rental housing sector to rise to over 5.8m households by 2020

One of the most significant changes taking place in the UK residential market is the sustained growth in the private rented sector (PRS), which has been growing substantially over the last decade or so. The sector has nearly doubled since 2002, with private renting now estimated to account for around 20% of all households – and, in 2015 alone, numbers are thought to have grown by 11%. This growth looks set to continue in the medium term with the number of households in PRS expected to rise to over 5.8m by 2020.

One of the major drivers of PRS growth has been the lack of housing availability and supply, particularly for first-time buyers, which has been exacerbated by rising house prices in London, the South-east and other major cities. The bulk of this rental demand has been driven by the 25–34 age-group, the so-called ‘Generation Rent’, with renters in this age group more than doubling since 2003. Population growth, net migration and a mobile younger workforce have all contributed to increased demand for homes in the PRS.

Since 2012-13, private rental has been the second largest housing tenure in England behind owner occupation, and overtaking social housing, while home-ownership levels have fallen. In London, privately rented households account for as much as a third of homes.

While PRS is dominated by smaller private landlords owning around 75% of properties, many institutional and large corporate investors are showing increasing interest – already owning around £20billion of PRS properties. The remaining PRS stock is held by other organisations including housing associations, local authorities, charities and student housing operators.

The PRS is now becoming an important asset class in its own right and is set to show comparable growth to that seen in other ‘alternative’ property sectors such as budget hotels and student accommodation. However, PRS in the UK is still in a relative stage of early development compared to the US market, for example.

Institutional investors represent a new source of finance for the housing market, separate and additional to traditional house-builders. Some of the early developers in the ‘Build-to-Rent’ market, such as Essential Living, Fizzy Living and Grainger have been joined by a number of UK investors, mainly financial institutions, who are also now committed in excess of £10bn to the sector – including companies such as Legal & General, APG, M&G Real Estate, Hermes and Invesco.

In the private sector there are developers with established PRS portfolios, such as Touchstone, Grainger and US firm Greystar, which moved into the UK market in 2015. Greystar is building one of the market’s biggest developments to date at West Greenford in Middlesex, where PRS accounts for around 1,000 of the site’s 3,000 homes.

The planning system continues to present challenges to the viability and delivery of many PRS schemes. The process remains complex and the potential delays in being granted permission is often cited by residential developers as an issue hampering development. In addition, the limited availability of suitable sites for PRS developments has been identified as one of the major constraints to the development of a volume of stock sufficient to attract institutional investment in the PRS.

The DCLG has forecast that, due to population growth and growing demand, the UK will need more than 1m extra rental homes to meet demand over the next 5 years, a view which is endorsed by industry forecasts. The Government is leading a number of initiatives to support PRS, particularly in London where an annual 5,000 target for new rental homes has been announced, and the use of public land to support ‘Build-to-Rent’ development has been encouraged. The Private Rented Sector Taskforce was established in April 2013, which included a £1bn ‘Build-to-Rent’ fund to help kick start PRS development and to build 10,000 homes specifically for private rent.

“Over the next few years, development in the PRS is expected to see a shift towards more purpose-built housing, predominantly high rise, with increasing financial backing from institutional investors.” Said Andrew Hartley. “There is increasing scope for the Build-to-Rent/PRS to provide significant opportunities for investors, developers, house-builders and contractors.”

Large scale PRS or build-to-rent schemes can also offer opportunities for modular and offsite construction, and this could drive the growth of a larger scale off site manufacturing capability for housing in the UK. The PRS also has implications in terms of maintenance and refurbishment and opportunities for companies in the FM supply chain, as PRS and build-to-rent schemes require maintenance and upgrades at regular intervals. Going forward, with significant demand for residential portfolios in both London and across the UK, and rental demand currently outweighing supply in the market, the future is likely to see more new homes built through the PRS via Build-to-Rent or institutional investment.

The ‘Private Residential Rental Market Report – UK 2016-2020 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services with over 25 years’ experience within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.

Bathroom Market - UK 2015-2019 - Key Facts

• The bathroom products market has an estimated value of around £820 million at Manufacturers Selling Prices (MSP) in 2015.
• Since 2013 the market for bathroom products has seen a steady increase, with demand picking up as the economy improves.
• The 3 leading suppliers take up 53% of the market shares for taps and mixers in the UK.
• Modern, digital and advanced technology will become more important as consumers become increasingly aware of the benefits of digital wireless control and also of the ‘smart home’ concept.
• By 2019, the market value is forecast to reach around £940 million, which would represent an increase of 14% compared to the market size in 2015.

These facts have been extracted from AMA Research's report 'Bathroom Market Report - UK 2015-2019 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724

Acceleration of growth in the overall UK interior refurbishment and fit-out market

The UK interior fit-out and refurbishment market is estimated to have seen substantial growth of 8% per annum in 2014 and 2015, according to a new report by AMA Research. Fit-out and refurbishment output continued to increase during the recession, albeit at lower levels of 2-4% per year, as many major clients, particularly in the office and retail sectors, commissioned interior refurbishment works rather than costlier new build projects.

Until 2013, there was also a noticeable increase in estate rationalisation across many areas of commercial sector activity as clients focused on how existing properties could be re-developed and re-branded. In 2014 and 2015, however, increasing confidence among client organisations, in the commercial office sector in particular, has resulted in an increase in speculative new build that in turn has generated growing demand for fit-out. Key to this is the ongoing need to address the shortage of Grade A space, particularly in Central London but also in most other major cities. However, this need has also continued to sustain demand for upgrading ageing Grade B stock. The result of this has been an acceleration in growth in the overall market in 2014 and 2015.

Overall, commercial offices constitute the largest market for interior refurbishment and fit-out with around 27% of output and Central London the largest market, followed by business parks across the Home Counties /South East. Despite renewed growth in speculative development, many client organisations remain fairly cautious, opting to ‘stay and refurbish’, as an ongoing shortage of affordable Grade A space looks likely to drive up demand for high quality refurbishment. As a result, retrofit refurbishment and remodelling of existing space into Grade A space is providing the main focus for occupiers requiring cost effective space over the short to medium term.

In the retail sector, store conversions and interior refurbishments, especially among the grocery multiples, are far more significant areas of activity than new build. The trends towards online shopping, changes in consumer food shopping habits away from large weekly to smaller more regular purchases and the changing composition of the High Street are among factors driving these changes. Major reductions in government capital spending programmes in education and healthcare have forced a significant shift in development programmes from new build to lower cost remodelling and refurbishment of existing buildings. In the healthcare sector, both organisational change and financial constraints in the NHS estate are leading to the focus shifting towards improving and refurbishing the current NHS estate.

The conversion of LA supported schools to Academies and Free Schools status, the creation of new primary school places and the Priority Schools Building Programme (PSBP) are key factors driving demand for fit-out and interior refurbishment services in education. In the higher education sector, there are significant opportunities for fit-out and refurbishment work going forward, as universities remodel their capital programmes to meet revised funding expectations. The main emphasis on construction projects in the higher education sector is now towards refurbishment and upgrade of existing facilities as well as ongoing maintenance and improvements and less towards new build projects.

The outlook for fit-out and refurbishment work in the leisure sector remains mixed with significant expansion plans announced by the budget hotels, food & drinks service and budget fitness club sub-sectors contrasting with less buoyant prospects for sectors such as the betting & gaming industry.

There are two very large specialist contractors in the interior refurbishment and fit-out market, which account for a significant share of the market.

“There have been relatively few major new entrants into the interior refurbishment and fit-out market in recent years, and much of the turnover generated from leading companies is from repeat business or long term contracts and store roll-out programmes.” said Keith Taylor, Director of AMA Research. “Clients typically prefer to use contractors from preferred lists. However, an increasing number of large national contractors have diversified into or expanded their operations within the fit-out market, particularly in the office and retail sectors, underpinned by the continuing pressures on new build.”

The ‘Interior Refurbishment and Fit-Out Market Report – UK 2016-2020 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.

Door and Window Fittings - UK 2015-2019 - Key Facts

• The market for door and window fittings is estimated to have grown by 7% since 2012 and remains significantly below pre-recession peak.
• A reasonable share of the market is for retro-fit locks, handles or other hardware, making standard, traditional style fittings an important sector. 
• Polarisation is a striking feature of the market which is characterised at one end of the market by high value high specification products and low cost, basic products at the other end. 
• Suppliers have continued to increase their product ranges in order to maintain share of a very competitive market.
• Distribution of door & window fittings in the UK remains highly fragmented, with DIY Multiples, Glazing Hardware Distributors, Builders Merchants, Architectural Ironmongers and Online all with significant shares.

These facts have been extracted from AMA Research's report 'Door and Window Fittings Market Report - UK 2015-2019 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724

Care Homes Construction - UK 2015-2019 - Key Facts

• There are almost 20,000 care homes, nursing homes and residential homes providing adult and elderly care throughout the UK.
• Around 44% of care home residents are fully self-funded.
• There are an estimated 1,500 ExtraCare developments with over 60,000 bed-spaces across the UK.
• The medium-term outlook for health and social care is challenging, with estimates suggesting a funding gap for adult social care of around £4.3bn over the next 5 years.
• The top 6 groups in the not for-profit or voluntary sector manage around 21% of capacity in terms of number of bed spaces (equivalent to almost 3% of total care home market capacity.)

These facts have been extracted from AMA Research's report 'Care Homes Construction Market Report - UK 2015-2019 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724.