Growing influence of rental
market – Palmer
May 2017

A booming private rental market was highlighted by Robert Palmer of Palmer Market Research as one of the major factors driving long-term change in the window and door industry.

Speaking to a FIT Show seminar audience, he said a drop in home ownership from its 2005 peak had seen private rental more than double to 4.5million properties in the same period – a market he said was tougher and more price-driven but, he continued:

“There are however incentives - or perhaps more accurately disincentives for not doing so – to improve the energy efficiency of their properties. 

“MEES or Minimum Energy Efficiency standards give landlords just a year to bring the energy performance certificate (EPC) rating of their properties to no lower than E for new tenants and to all existing tenancies from 01 April 2020”, said Palmer.

Expanding on many points from his report earlier this year read story he said first time window and door replacements had dropped from 80% in 2000 to less than 30% in 2015, with ‘replacement of replacement’ installations now accounting for 70% of all installations. 

He argued that this was driving increased focus on aesthetics, “Homeowners want something that is tangibly different and the appearance of windows is increasingly important in the market”, he said. 

“That in turn is driving innovation in the industry and the shift to premium finishes and foils in retail markets. 
“While there will always be a place for standard budget white PVC-U, there has been definite shift in consumer expectation. 

“The industry has responded with foils and premium finishes as well as the very substantial growth that we’re seeing in demand for aluminium.” 

To this end he forecast that aluminium is on course to reach a 17-year high by 2020, topping 220,000 frames by the end of the three-year period. 

This he said would be delivered by significant growth in the bi-fold market, which he forecast was set for growth of 30% through to 2020 in all material types to 55,000 door sets. Of these predicted that aluminium would take the lion’s share of the market at 35,000 units. 

Palmer cited ‘exponential growth’ in the solid roof conservatory market as a second key area of opportunity. According to The Window, Door and Conservatory Markets in Housing in Great Britain, (October 2016) the market for replacement conservatory roofs was up 62% in 2015 to 11,200 installations and is forecast for continuing growth through to 2020. 

www.palmermarketresearch.co.uk