| AM45055 |
| AMA RESEARCH Market Report : UK Housebuilding Market Bathroom Products: January 2005 |
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Brief Description
| AMA Research have published a report on “Bathroom & Shower Products” focusing specifically on The Housebuilding Market. The report reviews developments in the new housing market and is based on a primary research programme of interviews with housebuilders throughout the UK. |
| Key areas included in the report:- |
| Detailed Assessment Of The Housebuilding Market - housing starts & completions, analysis by sector (private/public), forecasts of future trends. |
| Bathroom & Shower Products in New Build - products covered include baths, sanitaryware, shower controls, enclosures, screens, trays & brassware. Analysis includes overall market size, analysis by product, relative importance of new build by product, growth of en-suites and downstairs cloakrooms in new build. |
| Buying & Specification Process - review of factors influencing choice of product, major influences on decision, source of supply, responsibility for purchasing and installation. |
| Database of the top UK Housebuilders - optional listing includes about 650 Head and Regional offices. Available at an additional charge. |
| The report provides a comprehensive review of developments in the new housing market for bathroom and shower products. The overall housing market has continued to evolve throughout the last decade with substantial changes to the mix between public and private sectors, the size and style of dwellings and specifications levels for new build housing. |
| In 2004, the new build sector for bathroom products was estimated to be worth approximately 16% of the total bathroom and shower products sectors, with an approximate value of £151 million. In recent years, the sector has benefited from an increased incidence of en-suite and downstairs cloakroom installations and a 2% increase on completions between 2003-04. |
Executive Summary
| In 2004, housing completions were estimated at around 178, 000, an increase of 7% since 2000. The volume of bathroom product installation in the new housebuilding sector has increased considerably in recent years. The main reason behind this change is both the quantity and quality of the bathroom/en-suite facilities. Housebuilding companies are attempting to gain a stronger position in an increasingly competitive market through a higher volume and increased specification of bathrooms products to meet consumers’ developing tastes. |
| Traditionally, the new housebuilding sector has always been volatile, with levels of housing starts and completions affected by the general level of economic and consumer confidence. The housebuilding sector is also highly susceptible to fluctuations in interest rates and inflation. T |
| During 2001, completions declined to a low level with planning constraints cited as a significant factor. Additionally, the merger and acquisition strategies of some of the larger housebuilders during the year meant that focus was on internal restructuring rather than increasing completion numbers. The number of completions is currently lower than the levels seen in the early-mid 1990’s and in 2001 were the lowest recorded for at least 20 years. Latest official figures show that the number of private sector new house completions in Great Britain rose by 3% during 2003 to reach 175,000 and has a further 2% in 2004 to 178,700 of which, 158,000 were in the private housing sector. |
| Housing completions are only expected to achieve moderate annual growth levels of approximately 3-4% to reach an estimated 188,300 by 2006. Factors such as the limited availability and the increasing price of land, lengthy planning approvals process and increasing concentration on RMI (repair, maintenance and improvement), could all impact on the overall completions level. |
| The number of registered housebuilders during 2004 was approximately 20,000. The increasing concentration of the housebuilders market has continued during 2001-2004 with a greater proportion of companies now building in excess of 2000 houses per year. |
| During 2004, the top 20 national housebuilders accounted for just over 48% of total new housing completions. The leading national housebuilders are Barratt Developments, George Wimpey and Persimmon, which together accounted for an estimated 22.6% of the market in terms of completions. In recent years the industry has lost a considerable number of smaller housebuilders as a result of mergers, takeovers and acquisitions. For example George Wimpey’s acquisition of Laing Homes allowed them to increase market share. Taylor Woodrow acquired Wilson Connolly and Bryant Homes, which increased their share of the market. The main result of these activities has been the emergence of a leading group of five companies who accounted for over 31% of the market in 2004. |
| Over recent years the use of prefabricated bathroom pods have become increasingly popular among housebuilders. Bathroom pods are widely used in the construction of high-rise apartments, student accommodation, hotels, hospitals, prisons and nursing homes, where a standardised design is required on a high level. By incorporating bathroom pods, architects and contractors can reduce the build time of a project. Higher standards of quality and lower levels of specialist electrical and mechanical sub-contractors are required on site. As a result, many housebuilders favour bathroom pods. |
| During 2004, the overall bathroom products market was estimated to be worth £918 million at manufacturers selling prices. The new build sector for bathroom products during 2004 accounted for approximately 16% of the overall total market with an estimated value of £151 million, up from £129 million in 2001. This share gain can be attributed to the increased volume of bathroom products being installed in new houses and the general shift to better quality and slightly higher value fittings. |
| Sanitaryware still maintains its position as the largest product sector in terms of value, with 33% of the new build market, followed by shower enclosures (18%), shower controls (20%) and baths and brassware, with 12% and 10%. |
| In terms of specification, the research indicated that there is an increasing trend for the decision regarding the technical and brand specification of bathroom products to be taken at head office / group level, albeit with input from regional offices. This is mainly due to increasingly onerous legislative and product standards, with the emphasis placed upon the housebuilders to ensure compliance. In addition, many housebuilders operate with nation-wide purchase agreements for bathroom products. |
| In terms of major source of supply, builder’s merchants continue to dominate the new build bathroom, due to their stock levels and delivery capabilities. Even though many housebuilders are setting up purchase agreements directly with a manufacturer, the responsibility of physical purchase is often left to the subcontractor/installer who generally purchases from a builders merchant. |
| When specifying bathroom products, the housebuilders focus is on product specification and the quality and value of the products installed. Key considerations identified included the availability/distribution of products, after sale service and the manufacturers reputation. |
| The overall prospects of bathroom and shower products within the new housebuilding sector are good with the sector forecast to experience moderate growth of around 4% over the next five years. Some sectors such as showers and brassware are expected to achieve higher growth than baths and sanitaryware for example, particularly in terms of value, influenced by the trend towards added-value products in this sector. |
Companies Mentioned
Permisson, George Wimpey, Barratt Developments, Beazer Bryant, Taylor Woodrow, Wilson Connely, Wainhomes, Alphrd McAlpine Homes, Tay Homes, Galliford Try, Gerald Wood Homes, Knapp Group, Allison Homes, Bovis Homes, Countryside Properties, J S Bloor, McCarthy & Stone, Crest Nicholson, John Mowlem Homes, Charles Church, McAlpine Homes, Bellway plc, Greenham Trading, Greenham Construction, Westbury plc, Berkeley Group plc, Manor Kingdom Developments, Thames Water plc, Thirlstone Group Ltd, Fairclough Homes Ltd, AMEC plc, Centex Corporation USA, Fairview Homes, General London Constructors Ltd, Hillsdown Holdings, Fairview Holdings plc, Prowting plc, John Laing Ltd, Octagon Developments Ltd, Beechcroft plc, A & J Stephen (Holdings) Ltd, Ben Bailey plc, Bett Brothers plc, Cala Group Ltd, Chartdale Ltd, Croudace Holdings Ltd, Dvid McLean Homes Ltd, David Payne Homes Ltd, Elite Homes Group, Furlong Homes Ltd, Goldcrest Homes plc, Keepmoat plc, Haslam Homes Ltd, Henry Boot Homes, Hopkins Homes Ltd, Kendrick Homes Ltd, Kier Group plc, Swallow Homes Ltd, Linden Group, MacTaggart & Mickel, MJ Gleeson Group plc, Morgan Sindall plc, Lovell Partnership, Wheatley Construction, Morris Group Ltd, Allen plc, Morrison Homes Ltd, Norfolk Homes, Arrow Property Investments, Rialto Homes plcPelham Homes, Scotia Homes, Swan Hill Homes, Shepherd Homes Ltd, Shepherd Building Group, Swallow Homes Ltd, Spread Trustee Company Ltd, Weaver Homes Ltd, Jacuzzi UK Group plc, American Standard, Twyford Bathrooms, Sanitec Group, Qualceram Shires, Kohler Mira Limited, Triton plc, Baxi Group plc, Daryl Industries, Coram UK Ltd, BHD Aqualux, Showerlux UK Ltd, Manhattan Showers Ltd, Selecta Shower Products, Qualceram Shires, Deva Tap Company, RB Farquhar Manufacturing Ltd, Gateway Fabrications, Badekabiner, .
List of Contents
| 2 | SUMMARY |
| 3 | ECONOMIC ENVIRONMENT |
| 3.1 | GENERAL |
| 3.2 | GDP GROWTH |
| 3.3 | INTEREST RATES & INFLATION |
| 3.4 | UNEMPLOYMENT |
| 3.5 | HOUSEHOLD CONSUMPTION, EARNINGS & SPENDING |
| 3.6 | STERLING |
| 3.7 | CONSTRUCTION |
| 3.8 | POPULATION PROFILE |
| 3.9 | AVERAGE SIZE OF HOUSEHOLDS |
| 4 | THE NEW HOUSING MARKET |
| 4.1 | DEFINITION |
| 4.2 | MARKET SIZE |
| 4.3 | HOUSING STARTS |
| 4.3.1 | Overall Figures |
| 4.3.2 | The Sustainable Communities Plan |
| 4.3.3 | Regional Housebuilding Starts |
| 4.4 | HOUSING COMPLETIONS |
| 4.4.1 | Overall Figures |
| 4.4.2 | Private Sector |
| 4.4.3 | Public sector |
| 4.4.4 | Registered Social Landlords (RSLs) |
| 4.5 | VALUE OF HOUSEBUILDING |
| 4.6 | HOUSE PRICES |
| 4.6.1 | Average Price of New Dwellings |
| 4.6.2 | Average Selling price of All Dwellings |
| 4.7 | HOUSE-MOVING MARKET |
| 4.7.1 | Residential Property Transactions |
| 4.7.2 | Mortgages |
| 4.8 | HOUSING STOCK |
| 4.8.1 | Overall Housing Stock |
| 4.8.2 | Housing Land Prices |
| 4.8.3 | Household Tenure |
| 4.8.4 | Dwelling Stock By Age |
| 5 | THE HOUSEBUILDERS |
| 5.1 | DEFINITIONS |
| 5.1.1 | National Housebuilders |
| 5.1.2 | Larger Regional Housebuilders |
| 5.1.3 | Smaller Regional And Local Housebuilders |
| 5.2 | OVERALL MARKET |
| 5.3 | HOUSEBUILDERS MARKET SHARE |
| 5.4 | NATIONAL HOUSEBUILDERS COMPANY PROFILES |
| 5.4.1 | Key Company Indicators |
| 5.5 | REGIONAL & LOCAL HOUSE BUILDERS |
| 6 | BATHROOM PRODUCTS OVERALL MARKET TRENDS |
| 6.1 | OVERALL BATHROOM MARKET VALUE |
| 6.2 | OVERALL BATHROOM MARKET VOLUME |
| 6.3 | PRODUCT MIX |
| 6.3.1 | Baths & Sanitaryware |
| 6.3.2 | Showers |
| 6.3.3 | Shower Enclosures |
| 6.3.4 | Brassware |
| 7 | NEW BUILD MARKET FOR BATHROOM PRODUCTS |
| 7.1 | BATHROOM TRENDS IN NEW BUILD |
| 7.1.1 | Overall Housing Trends |
| 7.1.2 | Bathroom Pods (Volumetric Prefabrication Modules) |
| 7.2 | NEW BUILD MARKET SIZE AND TRENDS |
| 7.3 | PRODUCT MIX BY SECTOR |
| 7.3.1 | Main Bathrooms |
| 7.3.2 | En-Suite Bathrooms |
| 7.3.3 | Cloakrooms |
| 7.4 | SUMMARY OF THE NEW BUILD MARKET FOR BATHROOM AND SHOWER PRODUCTS |
| 8 | BUYING AND SPECIFICATION PROCESS FOR BATHROOM AND SHOWER PRODUCTS IN NEW BUILD |
| 8.1 | OVERVIEW OF BUYING AND SPECIFICATION |
| 8.2 | SPECIFICATION OF BATHROOM PRODUCTS |
| 8.2.1 | Technical Specification |
| 8.2.2 | Brand Specification |
| 8.2.3 | Responsibility For Installation |
| 8.2.4 | Purchasing Responsibility |
| 8.2.5 | Source of Purchase |
| 8.3 | FACTORS INFLUENCING CHOICE |
| 9 | FUTURE PROSPECTS |
Tables and Charts
| CHART 1 | HOUSEBUILDING COMPLETIONS 1996-2008 |
| TABLE 2 | TOTAL MARKET FOR BATHROOM & SHOWER PRODUCTS IN NEW BUILD HOMES BY SECTOR 2004 BY VALUE (£ MILLION MSP) |
| CHART 3 | INTEREST RATES AND INFLATION (CPI) FROM 1990-2006 |
| CHART 4 | PDI & SAVINGS RATIO AT CURRENT PRICES 1990-2006 |
| CHART 5 | VALUE OF CONSTRUCTION OUTPUT NEW WORK 1994-2004 (£ BILLION) |
| TABLE 6 | HOUSING STARTS 1996-2008 IN GREAT BRITAIN BY SECTOR (‘000) |
| TABLE 7 | PRIVATE HOUSE BUILDING STARTS 1998-2004 – GB REGIONS BY VOLUME (‘000) |
| TABLE 8 | HOUSEBUILDING STARTS FOR THE PRIVATE SECTOR - GREAT BRITAIN BY REGION 1998-2004 % INCREASE/DECREASE |
| TABLE 9 | PUBLIC SECTOR* HOUSE BUILDING STARTS 1998-2004 – GREAT BRITAIN REGIONS BY VOLUME (‘000) |
| TABLE 10 | HOUSE BUILDING COMPLETIONS 1995-2008 – GREAT BRITAIN (‘000 DWELLINGS) |
| CHART 11 | MIX OF NEW HOUSING COMPLETIONS IN GREAT BRITAIN BY SECTOR 1980-2004 (%) |
| TABLE 12 | UK VALUE OF HOUSEBUILDING – CONTRACTORS OUTPUT AT CURRENT PRICES (£ MILLION) 1993 - 2004 |
| TABLE 13 | AVERAGE PRICE OF NEW DWELLINGS 1993 – 2003 (£’000) |
| CHART 14 | THE AVERAGE PRICE OF NEW DWELLINGS AT CONSTANT (1998) PRICES – 1995 TO 2003 |
| TABLE 15 | NUMBER OF PROPERTY TRANSACTIONS IN ENGLAND AND WALES 1997-2003 (‘000) |
| TABLE 16 | GROSS MORTGAGE LENDING BY TYPE OF ADVANTAGE 1997-2004 |
| TABLE 17 | AVERAGE ADVANCES BY ALL MORTGAGE LENDERS ON NEW DWELLINGS 1997-2004 (£’000) |
| TABLE 18 | STOCK OF DWELLINGS IN GREAT BRITAIN 1971-2004 |
| TABLE 19 | AVERAGE PRICE OF PRIVATE SECTOR HOUSING LAND IN ENGLAND AND WALES 1993 – 2003:- (£’000) |
| TABLE 20 | HOUSEHOLD TENURE DISTRIBUTION IN GREAT BRITAIN 1992 TO 2004 |
| CHART 21 | MIX OF STOCK OF DWELLINGS BY AGE 2004 – ENGLAND |
| TABLE 22 | NHBC REGISTERED BUILDERS BY NUMBER OF UNITS STARTED 1998-2004 |
| TABLE 23 | MARKET SHARE OF THE LEADING HOUSEBUILDERS BY VOLUME 2004 |
| CHART 24 | UK BATHROOM AND SHOWERS MARKET 1996-2008 BY VALUE £ MILLION AT MSP |
| TABLE 25 | UK BATHROOM & SHOWER MARKET BY VALUE (£ MILLION MSP) 1998 - 2008 |
| TABLE 26 | TOTAL UK BATHROOM & SHOWER PRODUCTS MARKET BY VOLUME (000’S) |
| CHART 27 | MARKET MIX OF BATHROOM & SHOWER PRODUCTS 2004 BY VALUE |
| CHART 28 | PERCENTAGE OF NEW HOMES INCLUDING EN-SUITES 1996-2004 (%) |
| CHART 29 | VOLUME OF NEW BUILD BATHROOM INSTALLATIONS BY TYPE 2004 (000S) |
| CHART 30 | % SHARE OF TOTAL BATHROOM INSTALLATIONS BY TYPE OF BATHROOM IN 2004 BY VOLUME |
| CHART 31 | NEW BUILD MAIN BATHROOM MARKET VOLUME BY PRODUCT IN 2004 |
| CHART 32 | NEW BUILD MAIN BATHROOM MARKET VALUE BY PRODUCT IN 2004 (£ MILLION AT MSP) |
| CHART 33 | MIX OF BATHROOM PRODUCTS USED IN NEW BUILD MAIN BATHROOMS IN 2004 BY VALUE (£ MILLION AT MSP) |
| TABLE 34 | PRODUCT MIX OF SHOWERS IN THE MAIN BATHROOM OF NEW BUILD PROPERTIES IN 2004 BY VOLUME |
| TABLE 35 | MIX OF SHOWERS USED IN THE MAIN BATHROOM IN NEW BUILD PROPERTIES IN 2004 BY VALUE (£ MILLION AT MSP) |
| CHART 36 | PRODUCT MIX IN EN-SUITE BATHROOMS IN NEW BUILD PROPERTIES IN 2004 BY VOLUME |
| TABLE 37 | PRODUCTS INSTALLED IN NEW BUILD EN-SUITE BATHROOMS IN 2004 |
| CHART 38 | VALUE OF BATHROOM PRODUCT USED IN EN-SUITE BATHROOMS IN 2004 - (£M MSP) |
| CHART 39 | MIX OF EN-SUITE BATHROOM PRODUCTS BY INDIVIDUAL SECTOR IN 2004 BY VALUE (£ MILLION AT MSP) |
| TABLE 40 | MIX OF SHOWER TYPES USED IN NEW BUILD EN-SUITE BATHROOMS 2004 BY VOLUME (000’S) |
| TABLE 41 | MIX OF SHOWERS TYPES USED IN NEW BUILD EN-SUITE BATHROOMS IN 2004 BY VALUE (£M MSP) |
| TABLE 42 | PRODUCTS USED IN NEW BUILD DOWNSTAIRS CLOAKROOMS IN 2004 BY VOLUME (000’S) |
| TABLE 43 | VALUE OF PRODUCTS USED IN DOWNSTAIRS CLOAKROOMS IN 2004 (£M MSP) |
| TABLE 44 | TOTAL MARKET FOR BATHROOM & SHOWER PRODUCTS IN NEW BUILD HOMES BY SECTOR 2004 BY VALUE (£ MILLION MSP) |
| CHART 45 | THE TOTAL MARKET FOR NEW BUILD BATHROOM AND SHOWER PRODUCTS 2004 BY VALUE (£ MILLION AT MSP) |
| CHART 46 | THE TOTAL MARKET FOR NEW BUILD BATHROOM IN 2001 AND 2004 BY SECTOR VALUE (£ MILLION AT MSP AND % CONTRIBUTION TO NEW BUILD VALUE) |
| TABLE 47 | RESPONSIBILITY FOR TECHNICAL SPECIFICATION OF BATHROOM AND SHOWER PRODUCTS IN NEW BUILD 2004 |
| TABLE 48 | RESPONSIBILITY FOR BRAND SPECIFICATION OF BATHROOM AND SHOWER PRODUCTS IN NEW BUILD 2004 |
| TABLE 49 | RESPONSIBILITY FOR PURCHASE OF BATHROOM AND SHOWER PRODUCTS IN NEW BUILD 2004 |
| CHART 50 | MAJOR SOURCES OF PURCHASE FOR BATHROOM PRODUCTS 2004 |
Text © 2005 AMA Research
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