Self Build Housing Market - UK 2009-2013

Table of Contents

1. INTRODUCTION 6

2. SUMMARY AND FUTURE PROSPECTS 7

3. ECONOMIC ENVIRONMENT 10

• 3.1 GDP 10
• 3.2 INFLATION & INTEREST RATES 11
• 3.3 UNEMPLOYMENT 12
• 3.4 HOUSEHOLD CONSUMPTION 12
• 3.5 HOUSING & CONSTRUCTION 13
• 3.6 STERLING 14
• 3.7 POPULATION PROFILE 15
• 3.8 CONCLUSIONS 17

4. OVERALL HOUSEBUILDING MARKET 18

• 4.1 PUBLIC AND PRIVATE NEW BUILD HOUSING 18
• 4.2 HOUSE TYPES 19
• 4.3 HOUSEBUILDERS AND SELF BUILDERS 20

5. SELF-BUILD MARKET 22

• 5.1 INTRODUCTION 22
  • 5.1.1 Background 22
  • 5.1.2 Definition 23
  • 5.1.3 Overview 24
• 5.2 MARKET VOLUME 27
• 5.3 SELF BUILD PRODUCT MIX 29
  • 5.3.1 Private and Social Self-build Market 29
  • 5.3.2 Timber Frame Self Build 30
  • 5.3.3 Self-Build Traditional Housing 34
• 5.4 MARKET VALUE 35

6. MARKET INFLUENCES. 38

• 6.1 HOUSE PRICES 38
• 6.2 COSTS 38
• 6.3 DISTRIBUTION AND MARKETING 39
• 6.4 PRODUCT DEVELOPMENT 39
• 6.5 INNOVATION AND ENVIRONMENTAL 39
• 6.6 CODE FOR SUSTAINABLE HOMES 41
• 6.7 MIX OF TIMBER FRAME AND BRICK/BLOCK. 44

7. COST COMPONENTS 46

• 7.1 BUILD COST STRUCTURE 46
  • 7.1.1 Land 49
  • 7.1.2 Labour Mix 49
  • 7.1.3 Materials Mix 50
• 7.2 AVERAGE COSTS 54

8. KEY ISSUES 57

• 8.1 Key Motivations To Self-build 57
• 8.2 Generic Self-build Project Characteristics 58
• 8.3 Regional Variations in Self-build 59

9. DISTRIBUTION AND SUPPLY 62

• 9.1 STRUCTURE 62
• 9.2 BUILDERS MERCHANTS 65
• 9.3 ELECTRICAL WHOLESALERS 66
• 9.4 DIY MULTIPLES 67
• 9.5 SELF-BUILD SPECIALIST SUPPLIERS 68
  • 9.5.1 Self-build Housing Timber Frame Kits 70
  • 9.5.2 Self-build Oak Framed Housing 74
  • 9.5.3 Self-Build Brick and Block Package Companies 74
  • 9.5.4 Other Material Companies Involved in the Self-build Market 75

TABLES AND CHARTS

• CHART 1 SELF BUILD AND NEW HOUSEBUILDING COMPLETIONS UK 2008 7
• CHART 2 INTEREST RATES AND INFLATION (CPI) FROM 1992-2013 11
• CHART 3 PDI & SAVINGS RATIO AT CURRENT PRICES 1992-2013 13
• TABLE 4 EXCHANGE RATE FLUCTUATIONS 2002-2009 - STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 15
• CHART 5 AGE DISTRIBUTION OF THE RESIDENT UK POPULATION 2001 CENSUS (' 000) 16
• TABLE 6 HOUSE BUILDING COMPLETIONS AND FORECASTS 2005-2013 - UK (' 000 DWELLINGS) 18
• CHART 7 UK HOUSEBUILDING MARKET HOUSES V FLATS 2000 - 2008, % OF ALL DWELLINGS 19
• CHART 8 NUMBER OF HOUSING COMPLETIONS BY SIZE OF BUILDER 20
• CHART 9 BUILD ROUTE CHOICES 24
• CHART 10 ESTIMATED NEW HOUSING COMPLETIONS - PRIVATE/SOCIAL/SELF BUILD - 2008 26
• CHART 11 SELF-BUILD MARKET - COMPLETIONS BY VOLUME 2005-2013 27
• CHART 12 MIX OF PRIVATE AND SOCIAL SELF-BUILD MARKET BY VOLUME 2008 29
• CHART 13 UK TIMBER FRAME HOUSING ESTIMATED COMPLETIONS - 2008 BY SECTOR (PRIVATE, SOCIAL AND SELF BUILD) AND BY VOLUME 31
• CHART 14 TIMBER FRAME AS A % OF NEW HOUSING IN KEY COUNTRIES 2007 32
• CHART 15 SELF BUILD HOUSING MARKET - BY VALUE 2000-2013 36
• TABLE 16 UK MARKET FOR SELF-BUILD HOUSING 2003-2013 BY VALUE (£BN) 36
• TABLE 17 KEY FACTORS AFFECTING NEW HOME PURCHASE. 40
• CHART 18 CODE FOR SUSTAINABLE HOMES - CATEGORIES NECESSARY TO ACHIEVE CODE POINTS 41
• TABLE 19 KEY INFLUENCES AFFECTING FUTURE PROSPECTS FOR SELF BUILD 43
• CHART 20 SELF BUILD - SHARE FOR TIMBER & BRICK AND BLOCK 2008 44
• TABLE 21 KEY INFLUENCES FOR TIMBER FRAME VERSUS BRICK AND BLOCK IN SELF BUILD HOUSING 45
• CHART 22 MIX OF TOTAL SELF-BUILD MARKET BY COST SECTOR - 2008 46
• TABLE 23 VALUE OF PRODUCT SECTORS IN THE SELF-BUILD MARKET 2004-2013 £ BILLION 47
• CHART 24 CHANGES IN COST OF LAND, MATERIALS, LABOUR AND PLANT 2000 - 2013 (£M) 48
• CHART 25 KEY PRODUCT SECTORS BY VALUE - SELF BUILD 2008 50
• CHART 26 SELF BUILD UK - AVERAGE COST 2000 - 2013 (£' 000' S) 55
• CHART 27 AVERAGE PRICES BY PROPERTY TYPE - ENGLAND AND WALES 2008 56
• CHART 28 REGIONAL VARIATIONS IN THE SELF-BUILD MARKET BY VOLUME OF HOUSES 59
• CHART 29 SELF BUILD SHARE OF TOTAL HOUSING MARKET - BY COUNTRY, 2008 60
• CHART 30 LAND, MATERIALS AND LABOUR COSTS TO SELF BUILD - BY REGION - 2008 61
• CHART 31 DISTRIBUTION CHANNELS IN THE SELF-BUILD MARKET 62
• CHART 32 SHARE BY VALUE OF DISTRIBUTION CHANNELS IN THE SELF-BUILD MARKET 2008 63
• CHART 33 MERCHANTS MARKET SHARES 2008 65
• TABLE 34 OVERVIEW TOP 10 COMPANIES 2007 66
• CHART 35 DIY MULTIPLES MARKET SHARE 2007 68
• CHART 36 SHARE OF TIMBER FRAME MANUFACTURERS TO THE HOUSEBUILDING SECTORS - 2008 70
• CHART 37 TIMBER FRAME SUPPLIER MARKET SHARE TO THE SELF BUILD SECTOR - 2008 71