United Kingdom Manufactured Homes Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

United Kingdom Manufactured Homes Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The size of the UK Manufactured Homes Market is USD 4.2 billion in the current year and is anticipated to register a CAGR of over 4.6% during the forecast period

• The COVID-19 epidemic has impacted the economy of the region and interfered with business activities. The government-imposed shutdown has compelled the enterprises to postpone their initiatives. The lockdown restrictions have reduced market participants' ability to generate income. A shortage of laborers is the result of social exclusion and a lockdown that was mandated.
• The market for manufactured and mobile houses is driven by the popularity of affordable housing among people all over the UK. One significant trend that has supported the growth of the market for manufactured houses is the rising popularity of prefabricated homes. Design and construction, body and frame requirements, thermal protection, plumbing, electrical fire safety, and energy efficiency are the main determining factors. Some of the recent technologies that are used in manufactured homes include built-in wireless connectivity, pop-up power strips, keyless entry, and NEST Thermostats.
• According to a recent research, if the government follows through on its promise to build 300,000 homes annually, England will spend all of its 1.5C carbon budget on housing alone. By 2050, the housing system would consume 104% of the nation's total carbon budget if new dwellings were constructed at the same rate as existing ones and present efficiency trends continued. The study suggests that more sustainable solutions to the housing crisis include drastically modifying existing homes, reducing the number of second homes, discouraging people from purchasing homes as financial ventures, and forcing people to live in smaller homes.
• By 2030, the government has promised to adopt legally binding standards that will require all new initiatives to result in a "biodiversity net gain." Building developments for commercial and residential use constitute a hazard to 24% of the world's threatened species listed on the IUCN Red List. According to the researchers, retrofitting existing stock to make all homes zero carbon by 2050 would save 38% of the total carbon budgets needed to limit global warming to 1.5 degrees Celsius. They also note that this is "by far the most effective policy for reducing housing's conflict with climate targets." Although though the report did not examine how many homes the government should be constructing, it is theoretically conceivable to meet housing demands without a rapid expansion of the housing stock. According to the researchers' estimates based on data from the English Housing Survey, there are 1.2 million empty or underused homes.

• The UK is one of the most urbanized nations by any measure. In the UK, 84% of the population lived in urban areas in 2021, according to World Bank. This indicates an increase of roughly three percentage points over the previous ten years. Though gradual, the rising trend has consistently been befavourableble.
• The urban expansion will continue as long as more people are working in offices and service-related businesses. Eight out of every ten people in the UK reside in towns, including more than three in one of the ten major metropolitan regions, according to an industry association. The largest of them is by far the Greater London metropolitan region, which includes the largest port, the largest industrial hub, the most signifcentrecenter for office work, and the nation's capital.
• The largest city in the UK and possibly the financial centre of Europe is London. The high cost of living in the city is reflected in the fact that this economic success has resulted in rising rental prices. In England and Wales, London has one of the highest homicide rates. Despite these negatives, London still brings in millions of foreign visitors each year. To accommodate the more and more population shifting towards urban areas, the need for quick and reliable housing is accelerated. People are shifting their focus to manufactured and prefab houses rather than traditional construction. Thus, the demand for manufactured houses is strongly driven by rapid urbanization.

• In 2021/22 the government of the UK spent approximately GBP 9.6 billion (USD 11.56 billion) on housing development, with the 7.6 billion spent on local authority housing making up the majority of this type of expenditure, as per the industry association. The manufactured Homes industry is anticipated to play a key role there as the UK government planned to build approximately 300,000 new homes per year by 2022 to address the issues in the housing market.
• Additionally, the Worthing council granted Ikea permission to collaborate with the building company Skanska to develop modular homes on the south coast in June 2019. Ilke Homes and Legal & General have each constructed manufactured, prefab, and modular home manufacturing facilities. These two businesses are revolutionizing the nation's manufactured housing market by building two- and three-bedroom homes that cost between GBP 65,000 (USD 78,271) and GBP 79,000 (USD 95,129). Ilke Homes promised to build 2,000 homes a year, eventually increasing that number to 5,000. Legal & General Insurance has constructed a sizable factory.
• Moreover, The market is expanding as the demand for higher-quality, environment-friendly homes rise across the continent, including the United Kingdom. The sector of manufactured construction is anticipated to have a considerable boost with the introduction of additive manufacturing in Europe. Businesses adopt environmentally friendly production methods and products to set themselves apart from the competition. By concentrating on energy efficiency, energy-absorbing materials, such as micro homes, have been introduced.

The UK manufactured homes market is fairly fragmented with the presence of many international and few local players. Some of the prominent players in the market are Bouygues construction, Lendlease corporation limited, Laing O’Rourke, campion homes, and Timberlogbuild. A number of market players in the manufactured home sectors are drawing potential residents with affordable options. They are committed to making sure that the off-site construction process is closely supervised at all times. The industry's top competitors are utilizing their technical know-how to modify homes to satisfy evolving consumer preferences, particularly in the areas of flooring, cabinets, and external finish.

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