New housebuilding is an important end use sector
for kitchen and bathroom products, and in 2015 it was estimated to account for
approximately 13% of the overall UK kitchen and bathroom products market. The
market for kitchen and bathroom products in newbuild housing increased by an
estimated 12% in 2015 to reach a value in excess of £700m, reflecting the
continued steady improvement in the UK economy, consumer confidence levels and
significant growth in the housebuilding market.
Kitchen appliances accounted for the largest sector of
kitchen and bathroom products in the housebuilders market with 40% share by
value. Other key product sectors reviewed in AMA Research’s report include
kitchen furniture, worktops, sinks and tapware, bathroom products and shower
products.
Following a static period between 2011 and
2013, market conditions have steadily improved in 2014 and 2015 with
housebuilding levels showing good growth, supporting new build kitchen sales
via contractors, developers, distributors and merchants. The shift towards
three and four bedroom homes has supported larger new build kitchens and
additional utility room installations in the new build sector. Most
housebuilders offer homebuyers the option to customise their new kitchen and
use predefined ranges of products such as worktops, splashbacks, furniture,
tiles, lighting and appliances.
Key trends in new build kitchens include; a focus on
layout and design, growing popularity of kitchen-diners with a seating area,
growing demand for ‘hotel-style’ quality interiors, increasing focus on
durability, particularly in the social housing sector, increasing usage of
well-known reputable brands of kitchen appliances in order to attract buyers
and an increasing choice of worktop materials and designs, with built-in or
integrated appliances installed in the majority of new build homes. Kitchen
taps have become more advanced with added value options including pull-out
hoses for food preparation, integral water filters and the hot water boiling
tap.
Trends worth noting in the new build bathroom sector include;
a continued trend towards 2+ bathrooms / ensuites, increasing investment in
quality fixtures and fittings offering longevity and luxury, minimalist
designs, ‘future proofing’ of bathrooms so they can be easily adapted to changing
needs driven by an ageing UK population, increasing popularity of wetroom
areas, and higher usage of digital technology in the premium sector in
applications such as digital shower controls, spa baths, sensor operated mixer
taps etc. Despite the general trend towards showering, a bath continues to be
an essential feature in the main bathroom in the vast majority of new build
homes.
With a growing
proportion of flats and apartments expected in the longer term and the small
size of the average UK bathroom and kitchen, there will be a continuing demand
for space-saving solutions, such as wall-hung sanitaryware, clever kitchen
storage, slim-line appliances and compact bathroom furniture. Housebuilders are
continuing to focus on family homes, which should drive sales of larger, higher
value kitchens. Increased choice is likely to become more important as
housebuilders compete to attract homebuyers, with branded ‘connected’
appliances, solid surface or stone worktops, digital showers, freestanding
baths, wetroom areas etc. being increasingly offered.
Keith Taylor, Director of AMA Research said “The new housing sector continued to recover
until mid-2016, underpinned by mortgage assistance schemes such as Help to Buy,
a more buoyant economy and undersupply for a number of years, however, the
referendum decision to leave the EU has resulted in some economic uncertainty
and housebuilders are likely to remain cautious. Consequently, this may result
in a lower level of housing starts in 2017, which will affect volume sales of
bathroom and kitchen products into the new housing sector.”
Although Brexit may have a negative effect on the
construction industry and a decline is likely in some sectors including housing
- particularly in volume terms – underlying demand and the possibility of
higher costs for imported raw materials and products, may support value growth
in the housebuilding as well as the kitchen and bathroom sectors. The value of
kitchen and bathroom products in the housebuilding market is forecast to grow
by around 4% between 2016-2020.
The ‘Kitchen and
Bathroom Products in the Housebuilding 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.