Between 2021 and 2022, Barratt Developments was the company with the largest housing turnover in the United Kingdom. Taylor Wimpey was the second company in the ranking, with a housebuilding revenue of *** billion British pounds. In fourth place, Bellway generated a revenue of *** billion British pounds in 2022. However, that only refers to the turnover that those companies generated from housing activities. What is the outlook for the UK's home construction market? Although housing construction was expected to stagnate in 2024, over the coming years the number of homes built is expected to rise at a quick pace. The projected growth of housing starts in the UK is anticipated to be **** percent higher in 2028 than in 2024. A rise in construction starts would be a good sign for the market, as there is a high demand for housing which, along with other factors, has fostered increasingly higher house prices in the UK during the past years. Who are the leading home builders in the U.S.? The market size of the home building industry in the United States is even bigger than in the UK. In 2023, Miami-based Lennar Corp. and the Texas-based D.R. Horton were the largest homebuilders in the U.S. with a revenue of over ** billion U.S. dollars. Other builders, such as PulteGroup, Toll Brothers, and NVR were also prominent players in the residential construction industry, with much higher revenue figures than their UK counterparts. The value of new residential construction in the U.S. rose significantly from 2019 to 2022 despite the COVID-19 pandemic, reaching about *** billion U.S. dollars. However, the market is expected to decrease until 2025, which could impact the revenues of these home builders.

Residential building contractors are contingent on the propensity of property developers to invest in new ventures; movements in property prices; government schemes intended to boost the housing supply; and underlying sentiment in the housing market. Industry contractors have endured turbulent operating conditions over the past five years, leading to volatile shifts in revenue and profitability. Revenue is forecast to grow at a compound annual rate of 1% over the five years through 2024-25, reaching £97.4 billion. The pandemic caused a significant drop in output in 2020-21, as restrictions placed on on-site activity and fewer enquiries for new housing units reduced revenue opportunities. Aided by government support for the housing market and the release of pent-up demand, 2021-22 was characterised by a strong rebound in activity, though materials and labour shortages maintained constraints on output. Mounting supply chain disruption and heightened economic uncertainty maintained pressure on output in the following year, though revenue growth was maintained by growth in average selling prices. Interest rate hikes and inflationary pressures led to a more subdued housing market in 2022-23, holding back the number of housing starts and completions during the year. This was followed by a slump in new residential building construction in the following year, as high borrowing costs and uncertain market conditions caused developers to scale back investment plans. Revenue is set to grow by 1.5% in 2024-25, aided by a slight improvement in new orders for residential building construction and an uptick in average selling prices. Revenue is slated to climb at a compound annual rate of 1.5% to reach £105.1 billion over the five years through 2029-30. Housebuilding activity is set to grow in the medium-term, aided by the release of pent-up demand. Nonetheless, significant uncertainty remains, with mortgage rates likely to settle well-above pre-pandemic levels and supply chains remaining fragile. The new government’s pledge to deliver 1.5 million houses during the first five years of parliament will boost demand for industry contractors, though the full impact of this on growth prospects is dependent on the nature and extent of accompanying funding plans.

Starts and completions of new build dwellings in the UK, on a quarterly and annual basis, time series data

Over **** of SME house builders in England considered that the planning system was one of the main constraints hindering them from building more homes in 2024. Also ** of respondents considered that the lack of financially viable land was a constraint, while ** percent of English house builders also mentioned the lack of available and viable land as one of their main challenges.

Between 2021 and 2022, Barratt Developments was the house building company with the most units sold in the United Kingdom. Persimmon, the second company on the list, sold approximately 14,550 units in 2021. Bellway, which landed at fourth place in the ranking, sold 11,200 units in 2022. Those companies were also among the UK homebuilders with the largest revenues in 2021.

Number of Businesses statistics on the Residential Building Construction industry in the UK

Private companies were responsible for most of the new homes built in the United Kingdom (UK), amounting to ******* units in 2023. Housing completions in the UK decreased for three years in a row between 2007 and 2010. This was followed by several years of fluctuation and a gradual increase from 2013 to 2019. The number of homes completed in England remained relatively stable in 2021 and 2022, after reaching a low point in the second quarter of 2020 due to the restrictions implemented to prevent the spread of COVID-19. Construction starts and completions Comparing the number of starts and completions in London side-by-side shows that whenever there is a significant growth or fall in the number of projects started, that peak or valley tends to be reflected in the number of buildings completed a couple of years later. Nevertheless, disruptions, delays, and other obstacles may affect that correlation. Still, observing how many home construction projects started in the UK can provide some insight into the level of activity that construction companies may have in the near future. Given that the number of housing starts is forecast to fall in 2023, there might be slightly less work to be carried out the following year. Nevertheless, housing starts are expected to pick up again by 2024 and 2025. Housing associations in the UK Housing associations are not-for-profit organizations created to develop and rent homes for a lower price than in the private market. They have acquired certain relevance in the UK, although this type of organization also exists in other countries. On several occasions during the past decade, over a fifth of housing starts in London were developed by housing associations. Meanwhile, the number of new homes completed in Scotland by housing associations has increased a lot throughout the years, with several thousand units constructed every year during the past decades.

The Residential Construction Market Report is Segmented by Type (Villas and Landed Houses and Condominiums and Apartments) and Key Cities (London, Birmingham, Glasgow, Liverpool, and the Rest of the UK). The Report Offers Market Size and Forecasts for UK Residential Construction Market in Value (USD) for all the Above Segments.

Time series data on starts and completions of new build dwellings in local authorities across the UK, on an annual basis.

Time-series data on starts and completions of new build dwellings in English regions on a quarterly basis (now produced by the Department for Levelling Up, Housing and Communities as Table 217).

A total of 87 percent of the SMEs and large house builders in the United Kingdom (UK) in the second quarter of 2024 considered that land for development was limited or very limited. Furthermore, the share of respondents who stated that was adequate declined to 11 percent in the second quarter of 2024. Despite the shrinking value, London had the highest industrial land value in the UK in 2023.

The UK residential building construction industry, valued at approximately £185.55 million in 2025, is projected to experience moderate growth, with a Compound Annual Growth Rate (CAGR) of 2.26% from 2025 to 2033. This growth is fueled by several factors. Increased urbanization and population growth in key cities like London, Birmingham, Glasgow, and Liverpool are driving demand for new housing, particularly within the villas and landed houses, and condominiums and apartments segments. Government initiatives aimed at addressing housing shortages and improving infrastructure also contribute positively. However, the market faces constraints including fluctuating material costs, skilled labor shortages, and potential economic downturns which could impact investment and consumer confidence. The industry is highly competitive, with major players such as Willmott Dixon Holdings, Mace, Skanska UK, and Balfour Beatty vying for market share. These companies leverage expertise in project management, sustainable construction practices, and innovative technologies to remain competitive. The geographical distribution of projects varies, with London and other major cities expected to dominate, but regional growth will be influenced by local economic conditions and availability of land. The industry's future trajectory will depend on addressing these challenges effectively while capitalizing on the opportunities presented by population growth and government support. The construction sector's performance is closely tied to broader economic health. Interest rate fluctuations and changes in mortgage availability directly influence consumer purchasing power, impacting housing demand. Environmental regulations and a growing emphasis on sustainable building practices are reshaping the industry, promoting the adoption of eco-friendly materials and energy-efficient designs. This trend aligns with broader societal concerns regarding climate change and resource management, impacting material sourcing and project specifications. Competition is likely to intensify as established firms consolidate and new entrants emerge, particularly those specializing in sustainable and technological innovations. Strategic partnerships and mergers and acquisitions will play a significant role in shaping the competitive landscape, leading to increased efficiency and potentially improved capacity to manage the industry's challenges and capitalize on its growth opportunities. Recent developments include: December 2022: 375 low-carbon rental homes are delivered as part of a historic restoration project for Bristol City Center through public-private partnerships., December 2022: As the One Sydney Harbour residential building from Lendlease celebrates a critical milestone of "topping out" of Residences One, marking the completion of the highest structural point of the 72-story tower, it has secured more than $3.7 billion in sales over its three towers.. Key drivers for this market are: 4., Growth in Commercial Activities and Increased Competition4.; Increasing Demand for Affordable Housing Units. Potential restraints include: 4., Lack of Housing Spaces and Mortgage Regulation can Create Challenges. Notable trends are: Government mandates pertaining to Energy Efficiency.

The output of new private home construction in the United Kingdom is forecast to keep growing at a fast pace significantly after 2025. In 2029, the output of private housing is expected to amount to ***** billion British pounds.

Several of the largest new residential construction projects in the United Kingdom with a construction start date in 2025 were found in London. The Planned Investment and Major Works Programme in London was valued at 1.02 billion British pounds. The housing construction market in London London is one of the best-known cities in the world. It is an important financial and economic centre, accounting for the highest share of GDP out of all the regions in the UK. It is also home to the West-End and the British Museum, and it boasts a vibrant cultural life. The economic importance and popularity of the city are some of the factors fostering a high demand for housing construction in London. In addition to the 14,270 housing starts in London in 2023/24, there was also a similar volume of housing completions. In comparison, the number of private housing starts in the UK as was estimated to be 135,000 in 2024. House repairs in the UK Housing repair and maintenance was one of the segments with the highest market shares in the UK construction industry. Meanwhile, new private housing construction represented 18 percent of the construction market in the country in 2024. The revenue of housing repair and maintenance in Great Britain has been increasing at a fast pace in the past years.

Housing Starts in the United Kingdom decreased to 28180 units in the first quarter of 2025 from 31030 units in the fourth quarter of 2024. This dataset provides the latest reported value for - United Kingdom Housing Starts - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

The financial and operational success of property development markets depends on a range of socio-economic factors, such as property values, market sentiment and credit conditions. Building project developers' revenue is forecast to slide at a compound annual rate of 3.2% to £35.8 billion over the five years through 2024-25. The economic shock caused by the pandemic had a devastating impact on property development market in 2020-21. Severe supply chain and market disruption caused sentiment to wane and transaction activity fell, while property values initially depreciated and rental fee income stalled. Revenue rebounded in 2021-22, aided by low interest rates, house price inflation and a stronger than anticipated initial economic recovery from the pandemic. Nonetheless, revenue remained below pre-pandemic levels as growth was hindered by a further net deficit on revaluation of assets and lower rental income in office and brick-and-mortar retail markets. The fallout from the pandemic has caused developers to re-align investment towards lower-risk real estate markets which are likely to be more resilient to price shocks. Inaflationary pressures and rising interest rates spurred a further hit to portfolio valuations, discouraging developers from pursuing new developments. Revenue is forecast to grow by 2.5% in the current year, as interest rate cuts spur renewed growth in property values. Revenue is slated to climb at a compound annual rate of 1.3% to reach £38.2 billion over the five years through 2029-30. Following recent interest rate cuts, more stable economic conditions are set to continue to support improved sentiment in the near-term, spurring developers to pursue new ventures. Opportunities for growth are set to be most prominent in high-yield office markets and the technology sector, with growing use of artificial intelligence set to drive demand for the development and construction of data centres. Loosened planning policy is set to drive momentum in residential real estate markets, though more will need to be done for the government to achieve ambitious housebuilding targets.

UK Residential Construction Market size was valued at USD 30.00 Billion in 2024 and is projected to reach USD 60.00 Billion by 2032, growing at a CAGR of 9% from 2026-2032.

UK Residential Construction Market: Definition/ Overview

Residential construction refers to the process of building homes, apartments, and other dwellings for individuals or families. It involves various stages such as planning, design, site preparation, and the actual construction of the structure. The application of residential construction is essential in meeting the growing demand for housing due to population growth, urbanization, and economic development.

In the future, the industry is expected to embrace new technologies like sustainable building materials, smart home systems, and modular construction to create more energy-efficient, cost-effective, and environmentally friendly homes, making it a key player in addressing housing challenges.

The number of housing units whose construction started in Wales in 2023 was over three times higher than in 2020. The source did not provide data for 2021. Overall, the number of housing starts has decreased a lot between 2000 and 2020. Wales was the country with the lowest number of housing completions per capita in Great Britain.