Brexit and socio-demographic structures impact the UK market

The UK building and home improvement product distribution market grew by four per cent in both 2015 and 2016. These figures have been gained by AMA Research. According to the market researchers, growth was driven by value increases and a modest improvement in confidence, though while house building showed modest improvement, public sector funding cuts continued to impact large scale construction projects and the Brexit vote undermined any significant new investment in construction programmes.
The latest report by AMA states that in general, market growth has been healthy since 2014, when the market value increased by seven per cent. This was due to a strong housing market with new housebuilding up 31 per cent in terms of completions and some product sectors showing high levels of growth, such as solar energy technology. The market is dominated by four builders and plumbers merchants and the three home improvement multiples B&Q, Homebase (now Bunnings) and Wickes.
When looking at the current market tendencies, AMA states that the changing socio-demographic structures are stimulating a shift away from DIY, with the younger generation unable to leave home or renting until they are in their thirties, resulting in less motivation to undertake DIY, and at the other end of the scale, the older generation use tradesmen to do their DIY. In addition, the growth of flats and apartments, as well as smaller houses, will stimulate a shift away from DIY as there is simply less room to make improvements and changes. For the next two years AMA forecasts value growth of two to three per cent per annum for the building and home improvement products distribution market.