From the ways tradespeople are going greener to how the cost-of-living crisis is impacting the industry – the 2023 edition of Rated People’s Trends Report reveals this year’s biggest opportunities for tradespeople
- Rated People analysed more than 1 million home improvement jobs posted through its platform and interviewed thousands of UK tradespeople and homeowners to create the report
- Demand for eco home improvements has increased considerably as more homeowners want to save money on their energy bills
- Increasing operational costs and the rising cost of materials means 86% of tradespeople will need to increase their prices for homeowners in 2023
- Demand for renovations is up as more homeowners try to beat the property market
- The cost-of-living crisis and increasing cost of home improvements is leading to a ‘home improvement squeeze’ as homeowners rein in spending
- Workforce shortages are felt across the industry, but the tide could be starting to turn as trade training and enrolments are up by 40%
The find-a-tradesperson platform, Rated People, has just launched the 2023 edition of its annual Trends Report and it reveals this year’s biggest trends in home improvement and the biggest areas of opportunity for tradespeople.
Now in its fourth year, Rated People analysed around 1.1 million home improvement jobs posted through its platform by UK homeowners, and spoke to thousands of tradespeople, homeowners and homebuyers across the UK to create this year’s edition of the Rated People Home Improvement Trends Report.
The research uncovers how the cost-of-living crisis will impact the industry in 2023, as well as the biggest trends in sustainability. The rising costs of home improvements and renovations are also revealed, and insights around why so many people are now considering a career change to become a tradesperson are included.
Trend #1 – Demand For Eco Improvements Increases And Tradespeople Build A Greener Future
With rising energy prices, and an unarguable need to live more sustainably, demand for eco home improvements is at a record high – nine in 10 (90%) UK homeowners (who will be doing work to their homes) want to adapt their homes to make them more energy efficient and environmentally friendly this year as more people try to cut the cost of their energy bills. Four of the top five eco home improvement jobs that have increased in demand the most are related to reducing energy usage – demand for biomass boilers is up by 225% in just two years, solar panels have seen demand increase by 222%, and thermal insulation has risen by 143%.
Eight in 10 (78%) tradespeople are also planning to be more eco-friendly in 2023 and it’s electricians, handypeople and bathroom fitters that are leading the charge, with at least 75% of the tradespeople in those trades looking for ways to work more sustainably this year. One in three (34%) homeowners also say they’d be more likely to hire a tradesperson if they were environmentally friendly, so going green is a great opportunity for tradespeople.
More than half of UK (52%) tradespeople plan to take more local jobs in 2023 to reduce the fuel they use when travelling between jobs. Well over a third (41%) are planning to give more quotes remotely to cut their fuel usage down, and one in three (35%) are planning to improve their business recycling.
Trend #2 – The Home Improvement Squeeze
Following the ‘home improvement boom’ that we saw in 2022 and 2021, the cost-of-living crisis will have a huge impact on the industry this year. Compared to 2020, demand for tradespeople in 2022 was still up by 23%, but with the increasing cost of energy and the rising cost of living, demand reduced by 15% in 2022 compared to 2021.
This year, as people across the UK are understandably looking to rein in spending, fewer homeowners are planning home improvements – 35% say they will definitely be improving their homes, which is down from 52% in 2022, and 26% say they’re unsure.
The rising cost of materials, along with increasing operational costs for tradespeople, has pushed up prices for home improvement jobs. Nine in 10 (92%) tradespeople expect their costs to increase in 2023, and as a result 86% of tradespeople will be increasing their prices for homeowners this year by an average of 17%.
Almost three quarters (71%) of UK tradespeople expect to have work drop out in 2023 because of the rising cost of living, and eight in 10 (77%) think homeowner demand will reduce this year. So, to overcome the challenges in store for 2023, almost one in three (29%) tradespeople plan to invest in marketing and advertising to attract more business and one in four (25%) will be expanding their business offering to provide more services for homeowners.
Trend #3 – The ‘Race For Space’ Is Over
The ‘race for space’ was one of the biggest reasons for UK homeowners making improvements to their homes in 2021 and 2022. But in 2023, homeowners say they want to optimise the design of their homes instead of just increasing the space they have, so repurposing rooms and areas for different uses will be a big trend this year.
Demand for things like creating better storage, walk-in wardrobes, saunas, home bars, games rooms and playrooms has increased, and homeowners are also increasing their average planned spend, in response to the rising cost of work.
Trend #4 – Demand For Renovations Rises As Homeowners Try To Beat The Property Market
Although the property market has cooled over the past few months, property prices remain high. With increasing interest rates on top, more and more people are now choosing to either renovate their existing home or buy a property in need of work to create the home of their dreams for less money.
Almost two in three (60%) tradespeople expect to work on renovation projects in 2023, and well over half (60%) think demand for renovations will increase this year. The cost of home improvement work is impacting the types of jobs that will be most in demand. In 2021, it would have cost around £24,000 on average to complete a renovation of a three-bed semi in the UK. In 2022 this rose by around 21% to just shy of £29,000 and in 2023, the same work will cost just over £34,500, which means renovations have increased by more than £10,000 for homeowners, or 46%, in just two years.
To combat rising prices, homeowners will double down on value in 2023 and prioritise the most cost-effective improvements for their renovation projects. New bathrooms are now more popular among renovators than new kitchens for example, and more insulation and new boilers also make the top 20 renovation jobs planned for 2023, further reflecting the increasing demand for more energy efficient homes.
Across the country, the locations that give the biggest opportunities for tradespeople working on renovations are: Lincoln, with demand for renovations increasing by a huge 650% in just one year, Stevenage (+217%), Canterbury (+144%), Slough (+127%) and Doncaster (+118%). Although London has a wealth of period properties, only one of the locations in the top 10 is in capital – this is likely because of how high property prices are, which can mean the cost of renovating can be prohibitive.
Trend #5 – Workforce Shortages Are Felt Across The Industry, But Trade Professions Are Now Top Choice For People Who Want To Switch Careers
Searches on Google for ‘career switch’ have increased by 38% in the last two years, and more people are now starting to see the opportunities available in the trades. One in four (21%) people in the UK now say they’d be interested in working as a tradesperson, and interestingly more people said they’d be interested in switching careers to work as a tradesperson over any other line of work.
Eight in 10 (78%) tradespeople say being their own boss is the best bit of the job, and nine in 10 (89%) say they love their job. One in three (37%) UK tradespeople say they switched careers at some point to work in their trade, and 62% went on to say they make more money working as a tradesperson than in their previous profession.
With workforce shortages being felt across the industry, the opportunities within the trades are vast. Almost nine in 10 (87%) tradespeople think more young people should consider a trade career – but just under half (48%) of UK adults say they didn’t have a trade career offered to them in career advice when they were in school. Positively though, it appears things could be starting to change for the younger generation as there was a 40% rise in trade training and enrolments in 2022.
Adrienne Minster, CEO of Rated People commented:
“This year’s Home Improvement Trends Report is our biggest and best report yet – we’ve analysed more data than ever before, and it’s full of insights and opportunities for tradespeople.
With costs continuing to increase for tradespeople, and the cost of living starting to bite for homeowners, the home improvement landscape is very different this year to the home improvement boom that we saw in 2021 and 2022. But, among the biggest challenges for tradespeople in 2023, there are also incredible opportunities, and we hope this report will be a valuable tool for everyone in the industry.”
To read more about the key trends for 2023 and to see the 2023 edition of the Rated People Home Improvement Trends Report, visit: https://www.ratedpeople.com/blog/home-improvement-trends-report
