Press Release

MARKET REPORT HIGHLIGHTS GROWTH AREAS FOR TIMBER FRAME, BUT WARNS OF SLOWER YEARS AHEAD

Timber frame is the fastest growing method of mainstream construction in the UK, according to new figures published in the UK Timber Frame Association’s latest Market Report.

There was a 17.9% increase last year in the demand for all timber frame units, including housing and commercial units. Over 42,000 units were sold in 2004, leading to sales of nearly £425 million for timber frame manufacturers.

The number of new timber frame homes increased by 18%, more than twice the growth rate of other methods of building. Timber frame housing in the UK has increased market share for each of the past seven years – it now stands at 17%, double the market share it had in 1998.

Scotland continues to be the most faithful market for timber frame construction – market share there rose last year to 65.2% from 63% in 2003.

For the first time since the downturn in the timber frame market over 20 years ago, the share of timber frame housing in England and Wales has also reached double figures. England provided the largest market and the greatest growth, year-on-year – almost 11% of all homes in England are now timber frame.

The trend away from detached and some other forms of lower density, low-rise housing has continued throughout 2004. Although the market for detached, semi-detached and terraced timber frame homes all increased last year, greatest growth was seen in flats and multi-storey residential projects – the use of timber frame construction for housing over two storeys shot up by 27% in 2004.

In the social housing sector, non-timber frame construction declined by almost 18% last year. Support among housing associations for modern methods of construction (MMC), and their need to find a tried and tested offsite system that can deliver high quality affordable homes to demanding deadlines, led to the rise in timber frame’s market share – from 40% of UK social housing in 2003 to nearly 55% in 2004.

However, the UKTFA’s report also warns that this period of strong growth for the housing market is likely to be coming to an end.

A general slowdown in the housing market, delays in planning consents and the disinclination of developers and house builders to start new projects during a period of uncertainty are all likely to lead to a lower number of new home starts in 2005 and 2006.

UKTFA forecasts, derived from the views of member companies and other sources, suggest the housebuilding industry could be in for two years of stagnation before house building really picks up again in 2007.

Bryan Woodley, chief executive of the UK Timber Frame Association, says:

“Timber frame manufacturers are still investing for future growth. A period of low or no growth predicted for the entire market actually conceals the significant changes in the market. We believe there will continue to be a strong social housing sector, and more use of modern methods of construction to build homes on land which is increasingly controlled by Government. We will also see developers choosing timber frame because of its proven performance, its environmental excellence and the sophistication and reliability of its supply chain.

“We believe that timber frame will command 23% of the overall housing market by 2007, and timber frame housing starts will reach over 52,500 units in 2007 – virtually a tripling of market share since 1998.

“Modern timber frame construction, with its speed of erection, significant whole-life and environmental benefits and exacting technical standards, is making a fundamental contribution to the improvement in the quality of housing in the UK. The future direction of UK housing policy is being influenced by similar issues, so we see a robust future for timber frame construction.”

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