The United Kingdom Real Estate Services Market is estimated to grow at a CAGR of approximately 3% during the forecast period.
The Covid-19 has mixed impact on the Real Estate market in the UK including its services. Some Segments like the Hospitality industry had a negative impact due to lockdown and the transaction activity in Early 2020 was near to zero.
The UK was hit particularly hard by lockdown measures taken to contain the spread of COVID-19. Between Q4 2019 and Q2 2020, UK GDP in the UK fell by over 20%, twice as much as Germany and considerably more than Italy and France. UK’s economy grew by 7.5% in 2021, it’s the fastest annual growth rate since the second world war, despite falling back in December- 2021.
House prices shot up in early 2021, In 2021, Residential properties had been the outperformer. The office Real Estate take-up was below normal due to flexibility given to employees (Work from Home) by the companies. UK house prices rose by more than 10% in 2021, the fastest growth rate in 15 years, according to new figures that underline the strength of the pandemic housing boom. The price of an average UK home hit a record high of GBP 254,822 (USD 340,688) in December-2021, up nearly GBP 24,000 (USD 32,087) over the year-2021. The facilities management industry is accountable for as much as 8% of the United Kingdom’s gross domestic product (GDP), and the sector employs up to 10% of the country’s workforce.
Since summer 2021, the demand from first-time property buyers (FTB) has been above 30% of the 5-year average levels. Current market trends indicate the FTB demand remaining high in the next year 2022.In total, there were 153,339 new home registrations in 2021, marking a 25% increase on 2020
The UK government has taken initiative toward affordable home ‘The Shared Ownership and Affordable Homes Programme (2021-2026) was started to deliver on site for at least 135,000 homes for help to buy (shared ownership) 10,000 homes for rent to buy, and 8,000 homes for supported and older people’s rental accommodation. The number of shared homes completed in 2021 was around 17,100.
Britain has made a digital transformation in the real estate sector and supported new innovational startup and tools. Proptech is becoming a major need to cope up with the whole industry to adopt new technologies so one can prove their presence in such a fast-paced race. the UK seemed to adopt more B2B (business to business) PropTech solutions more of the B2C (business to customer) one by almost 28%.
Also, worth mentioning that most UK Proptech users tend to use it in managing their properties in the first place and then to sell, buy, rent, or build them. Due to the rapidly changing face of the workplace, UK commercial property, most notably office space, is busy trying to deliver what modern businesses are now demanding, flexible, short-term space to help support increasingly remote and nomadic workforces. This goes a long way to explaining the keen interest in ongoing property and facilities management as companies like Re-leased are helping streamline the processes of identifying space for occupiers and increasing revenue for commercial owners and landlords.
Investment into the UK’s fast-growing property technology (PropTech sector) has reached record levels in 2021 and more than quadrupled since 2020, as the growing sector matures. according to PropTech-focused venture capital firm Pi Labs, which analysed UK PropTech funding round data for 2021 and discovered that there had been GBP1.6 billion (USD 2.14 billion) of investment into the sector so far this year, a massive 360% rise from the GBP 347.79 million (USD 465.48 million) seen in 2020.
The housing industry has proven its resilience, according to NHBC (National House Building Council) data, which show 153,339 new home registrations in 2021, a 25% increase over 2020. In comparison to the 8-year low of 122,935 registrations in 2020, the industry enjoyed a substantial resurgence as it emerges from the pandemic.
Private sector registrations were the primary driver, increasing by more than 40% from 80,475 in 2020 to 114,477 in 2021. In contrast, new house registrations in the rental sector fell 8% from 42,460 in 2020 to 38,862 in 2021, owing in part to a shift in Housing Association capital allocations toward building safety restoration on existing housing stock.
In 2021, new house registrations increased in 11 of the 12 UK regions. The North East saw the most rise (registrations increased by 74% to 7,467), with notable gains in the North West (26%), Yorkshire & Humberside (31%), East Midlands (50%), Eastern (46%), South West (33%), Scotland (43%), and Northern Ireland & Isle of Man (43%). (28% ). Due to a mix of pandemic impacts and some hesitancy on apartment tower registrations, London was the only location to witness a decrease in registrations in 2021, down 27% from 2020.
The pandemic has caused some shifts in attitudes toward housing, with more individuals working from home and focusing on recreational and family life. In 2021, registrations for detached, semi-detached, terraced, and cottage residences all climbed. Detached dwellings increased the most, gaining 47% from 35,520 in 2020 to 52,190 in 2021. Apartments were the only housing category to have a year-on-year reduction (-15%) from 32,625 registrations in 2020 to 27,867 in 2021.
United Kingdom Real Estate Services Market is fragmented in nature due to presence of both international and local players, some of the prominent players in the industry are Knight Frank, Savills Ltd, Interserve and Regional players like Atalian Servest Ltd, Notting Hill Genesis etc. There has been few mergers and Acquisition i.e., in June 2021, Savills has acquired the commercial real estate and workplace solutions advisory firm, T3 Advisors. In Dec 2020, Mitie group has bought Interserve facilities management. Due to the Increase in Competition in the Market many players are switching to the use new Technologies such as PropTech to improve the efficiency and also to increase the growth of the market.
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The Covid-19 has mixed impact on the Real Estate market in the UK including its services. Some Segments like the Hospitality industry had a negative impact due to lockdown and the transaction activity in Early 2020 was near to zero.
The UK was hit particularly hard by lockdown measures taken to contain the spread of COVID-19. Between Q4 2019 and Q2 2020, UK GDP in the UK fell by over 20%, twice as much as Germany and considerably more than Italy and France. UK’s economy grew by 7.5% in 2021, it’s the fastest annual growth rate since the second world war, despite falling back in December- 2021.
House prices shot up in early 2021, In 2021, Residential properties had been the outperformer. The office Real Estate take-up was below normal due to flexibility given to employees (Work from Home) by the companies. UK house prices rose by more than 10% in 2021, the fastest growth rate in 15 years, according to new figures that underline the strength of the pandemic housing boom. The price of an average UK home hit a record high of GBP 254,822 (USD 340,688) in December-2021, up nearly GBP 24,000 (USD 32,087) over the year-2021. The facilities management industry is accountable for as much as 8% of the United Kingdom’s gross domestic product (GDP), and the sector employs up to 10% of the country’s workforce.
Since summer 2021, the demand from first-time property buyers (FTB) has been above 30% of the 5-year average levels. Current market trends indicate the FTB demand remaining high in the next year 2022.In total, there were 153,339 new home registrations in 2021, marking a 25% increase on 2020
The UK government has taken initiative toward affordable home ‘The Shared Ownership and Affordable Homes Programme (2021-2026) was started to deliver on site for at least 135,000 homes for help to buy (shared ownership) 10,000 homes for rent to buy, and 8,000 homes for supported and older people’s rental accommodation. The number of shared homes completed in 2021 was around 17,100.
Key Market Trends
Increase in adoption of Proptech in real estate
Britain has made a digital transformation in the real estate sector and supported new innovational startup and tools. Proptech is becoming a major need to cope up with the whole industry to adopt new technologies so one can prove their presence in such a fast-paced race. the UK seemed to adopt more B2B (business to business) PropTech solutions more of the B2C (business to customer) one by almost 28%.
Also, worth mentioning that most UK Proptech users tend to use it in managing their properties in the first place and then to sell, buy, rent, or build them. Due to the rapidly changing face of the workplace, UK commercial property, most notably office space, is busy trying to deliver what modern businesses are now demanding, flexible, short-term space to help support increasingly remote and nomadic workforces. This goes a long way to explaining the keen interest in ongoing property and facilities management as companies like Re-leased are helping streamline the processes of identifying space for occupiers and increasing revenue for commercial owners and landlords.
Investment into the UK’s fast-growing property technology (PropTech sector) has reached record levels in 2021 and more than quadrupled since 2020, as the growing sector matures. according to PropTech-focused venture capital firm Pi Labs, which analysed UK PropTech funding round data for 2021 and discovered that there had been GBP1.6 billion (USD 2.14 billion) of investment into the sector so far this year, a massive 360% rise from the GBP 347.79 million (USD 465.48 million) seen in 2020.
Increase in New home registration To Boos the Real Estate Services Market
The housing industry has proven its resilience, according to NHBC (National House Building Council) data, which show 153,339 new home registrations in 2021, a 25% increase over 2020. In comparison to the 8-year low of 122,935 registrations in 2020, the industry enjoyed a substantial resurgence as it emerges from the pandemic.
Private sector registrations were the primary driver, increasing by more than 40% from 80,475 in 2020 to 114,477 in 2021. In contrast, new house registrations in the rental sector fell 8% from 42,460 in 2020 to 38,862 in 2021, owing in part to a shift in Housing Association capital allocations toward building safety restoration on existing housing stock.
In 2021, new house registrations increased in 11 of the 12 UK regions. The North East saw the most rise (registrations increased by 74% to 7,467), with notable gains in the North West (26%), Yorkshire & Humberside (31%), East Midlands (50%), Eastern (46%), South West (33%), Scotland (43%), and Northern Ireland & Isle of Man (43%). (28% ). Due to a mix of pandemic impacts and some hesitancy on apartment tower registrations, London was the only location to witness a decrease in registrations in 2021, down 27% from 2020.
The pandemic has caused some shifts in attitudes toward housing, with more individuals working from home and focusing on recreational and family life. In 2021, registrations for detached, semi-detached, terraced, and cottage residences all climbed. Detached dwellings increased the most, gaining 47% from 35,520 in 2020 to 52,190 in 2021. Apartments were the only housing category to have a year-on-year reduction (-15%) from 32,625 registrations in 2020 to 27,867 in 2021.
Competitive Landscape
United Kingdom Real Estate Services Market is fragmented in nature due to presence of both international and local players, some of the prominent players in the industry are Knight Frank, Savills Ltd, Interserve and Regional players like Atalian Servest Ltd, Notting Hill Genesis etc. There has been few mergers and Acquisition i.e., in June 2021, Savills has acquired the commercial real estate and workplace solutions advisory firm, T3 Advisors. In Dec 2020, Mitie group has bought Interserve facilities management. Due to the Increase in Competition in the Market many players are switching to the use new Technologies such as PropTech to improve the efficiency and also to increase the growth of the market.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
This product will be delivered within 2 business days.
Table of Contents
1 INTRODUCTION
4 MARKET DYNAMICS
5 MARKET SEGMENTATION
6 COMPETITIVE LANDSCAPE
Companies Mentioned
A selection of companies mentioned in this report includes:
- Savills (uk) Ltd
- Knight Frank LLP
- Bridgewater Housing Association Ltd
- NHS Property Services Ltd
- Sanctuary Housing Association
- Atalian Servest Ltd
- Notting Hill Genesis
- Interserve Ltd
- Trillium Holdings Limited
- Mears Ltd*
Methodology
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