The UK housing market has witnessed a strong recovery over the past two year, with government figures showing that between 2009 and 2013 the total number of housing starts in the UK grew by 31%. New housing and first-time installations represent an important market for domestic heating, accounting for around 25% of total sales of domestic heating systems.
According to a new report, Domestic Heating, published by market intelligence firm Key Note, the UK domestic heating market grew by 1.3% and 1.9% respectively in 2013 and 2014.
Growth is mainly attributed to an improving economy, recovering consumer confidence and growth in the housebuilding industry. The market for boilers is the largest within this market, contributing almost half (49.4%) of the total sales of domestic heating products in 2014, followed by boiler spares, space heating, radiators, heating controls and pumps, which account for the smallest proportion of the industry at just 2.8% in 2014.
The price of energy in the UK has gone up considerably in recent years. The sharp increase in fuel costs has forced householders to ration their energy use and consider switching their conventional boilers over to more cost-efficient heating systems, or installing heating controls to save money on heating bills.
Renewable heating technology has significantly progressed in recent years, making renewable energy products more financially affordable. A wide range of renewable energy products are now available in the domestic heating sector, such as solar thermal, air source heat upmps, ground source heat pumps and biomass boilers.
Key Note forecasts that the UK domestic heating market will continue to grow over the next few years, rising by an estimated 2% in 2015. Growth will be driven by demand for new housing, a strong replacement market, as many switch to more efficient boilers, as well as increasing use of domestic renewable heating products.
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