PUBLISHER: Verified Market Research | PRODUCT CODE: 1623430
PUBLISHER: Verified Market Research | PRODUCT CODE: 1623430
A growing elderly demographic seeks home services for maintenance and care is propelling the adoption of home services. The rise of remote working has led homeowners to invest in home improvements and maintenance to enhance their living environments, this is driving the market size surpass USD 9.57 Billion valued in 2024 to reach a valuation of aroundUSD 17.69 Billion by 2031.
In addition to this, Consumers are increasingly interested in eco-friendly home services is spurring up the adoption of home services. The increasing adoption of smart home technologies encourages homeowners to seek services that integrate with their tech setups is enabling the market to grow at aCAGR of 8.80% from 2024 to 2031.
United Kingdom Home Services Market: Definition/ Overview
United Kingdom home services encompass a wide range of professional services aimed at maintaining, improving, and managing residential properties. This sector includes services such as cleaning, gardening, plumbing, electrical work, pest control, and home repairs. The industry serves homeowners and renters' alike, offering convenience and expertise to ensure homes are functional, safe, and aesthetically pleasing.
In the UK, home services are essential for both routine maintenance and emergency situations. Homeowners frequently rely on these services for tasks that require specialized skills, such as electrical repairs or plumbing issues, which can be daunting for non-experts. Additionally, services like cleaning and gardening contribute to the overall comfort and appeal of homes, making them more enjoyable spaces. The rise of digital platforms has also made it easier for consumers to access and book these services, enhancing convenience and transparency in pricing.
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The aging population in the United Kingdom has significantly boosted the home services market, as seniors increasingly seek assistance with household maintenance and modifications. According to the Office for National Statistics, by 2021, over 19% of the UK population was aged 65 years or older, representing a 23% increase from a decade earlier. This demographic shift has led to a surge in demand for services like home cleaning, maintenance, and age-specific modifications, with British Gas recently launching a specialized "Home Care for Elderly" package in March 2024.
The rise of dual-income households has created time constraints for many British families, driving the need for professional home services. The UK Labor Force Survey revealed that 75.1% of working-age women were employed as of December 2023, marking a historical high. This trend has propelled the growth of on-demand home service platforms, with Housekeep reporting a 40% increase in bookings for regular cleaning services in 2023 and expanding its offerings to include handyman and gardening services across major UK cities.
Rising technological advancements have revolutionized how home services are accessed and delivered in the UK market. Home service bookings through mobile apps grew by 67% between 2020 and 2023, according to the Department for Digital, Culture, and Media & Sport. This digital transformation has attracted significant investment, with TaskRabbit, owned by IKEA, announcing in February 2024 a £50 million expansion plan for its UK operations, including the introduction of AI-powered service matching and real-time tracking features to enhance customer experience and service efficiency.
The United Kingdom home services market faces challenges due to economic fluctuations, which can impact consumer spending. Economic uncertainty, such as inflation or recession, often leads households to cut back on discretionary services like cleaning, gardening, or maintenance. This hesitation can result in decreased demand for home service providers, making it harder for businesses to maintain consistent revenue streams.
Another significant restraint is the labor shortage in the home services sector. Many companies struggle to find skilled workers, as the demand for services outpaces the availability of qualified personnel. This gap can lead to increased wages and training costs, which may be passed on to consumers, potentially limiting market growth as prices rise.
Consumer preferences are evolving, with an increasing emphasis on technology and convenience. Many homeowners now expect seamless digital experiences for booking and managing services, which may be difficult for traditional providers to implement. Companies that fail to adapt to these technological advancements risk losing market share to more innovative competitors.
The offline segment dominating the United Kingdom's home services market, with traditional word-of-mouth referrals and local service providers forming the backbone of the industry. According to the Office for National Statistics, as of December 2023, approximately 68% of UK households reported using at least one home service in the past year, highlighting the sector's widespread impact across the nation. Major players like British Gas have recently expanded their home services portfolio, introducing innovative smart home diagnostics while maintaining their extensive network of in-person technicians.
Local trade associations continue to play a crucial role in connecting homeowners with trusted service providers, fostering a sense of community and reliability in the offline segment. The Department for Business and Trade reported that small and medium-sized enterprises (SMEs) account for 83% of all home service businesses as of March 2024, underscoring the sector's reliance on local expertise. Homeserve, a key market player, announced in February 2024 its acquisition of several regional service providers to strengthen its offline presence and enhance its customer reach across different UK regions.
Interior design services in the UK continue to flourish, driven by a growing appreciation for professionally curated living spaces and the rise of hybrid working arrangements. According to the Office for National Statistics, the interior design sector contributed £3.4 billion to the UK economy in 2023, marking a significant increase from previous years. Industry leader John Lewis & Partners recently expanded its home design services, introducing virtual consultations alongside traditional in-home visits to cater to diverse customer preferences while maintaining their signature personalized approach.
The pandemic-induced focus on home environments has catalyzed a sustained boom in interior design services, with homeowners increasingly seeking expert guidance for both aesthetic and functional improvements. The Department for Business and Trade reported that registrations for interior design businesses increased by 32% between 2022 and 2023, reflecting the sector's robust growth. IKEA UK has capitalized on this trend, launching an enhanced interior design service in March 2024 that combines their product range with professional design expertise, offering both virtual and in-store consultations.
The United Kingdom's home services market demonstrates robust growth, fueled by increasing household demand for professional maintenance, repair, and improvement services. According to the Office for National Statistics, the home services sector generated revenue of £28.7 billion in 2023, reflecting a 15% increase from the previous year. British Gas, a dominant player in the market, recently introduced an AI-powered predictive maintenance service in February 2024, allowing for proactive identification of potential issues in home systems and appliances.
Market dynamics are shifting towards more integrated service offerings, with providers expanding their portfolios to capture a larger share of customer needs. The Department for Business and Trade reported that 62% of UK households subscribed to at least one home service maintenance plan in 2023, indicating a growing preference for comprehensive coverage. HomeServe, another key market player, announced in March 2024 its acquisition of a leading smart home technology company to enhance its digital service capabilities while maintaining its strong traditional service network.
The sector's resilience is further evidenced by consistent investment in workforce development and service quality improvements. Government data from the Skills Funding Agency reveals that apprenticeships in home service trades increased by 28% in 2023, ensuring a pipeline of qualified professionals. Dyno, part of the British Gas group, recently unveiled plans to expand its emergency service coverage to 95% of UK postcodes by the end of 2024, investing in both personnel and technology to support this growth while maintaining their commitment to rapid response times.
The United Kingdom home services market is a dynamic and competitive space, characterized by a diverse range of players vying for market share. These players are on the run for solidifying their presence through the adoption of strategic plans such as collaborations, mergers, acquisitions, and political support.
The organizations are focusing on innovating their product line to serve the vast population in diverse regions. Some of the prominent players operating in the United Kingdom home services market include: