Last Updated on May 27, 2026
2026 Data Report
Executive Summary
The UK construction industry is worth £297 to £390 billion depending on how you measure it, with over 17,000 commercial building businesses competing for residential and commercial work. But those headline numbers mask a much more fragmented reality at the local level, where thousands of sole traders and micro firms compete for extensions, conversions, and renovations in their postcode.
This page breaks down the numbers behind UK builder marketing: what projects are worth, how customers find builders, what the search demand looks like, and what it actually costs to win a new customer.
Key Takeaways
- The UK construction sector has over 17,000 commercial building businesses, with the residential renovation and extension market growing steadily as homeowners choose to improve rather than move.
- Loft conversions are worth £27,500 to £75,000, house extensions £55,000 to £110,000, and kitchen renovations £12,000 to £42,000, making them the highest-value residential projects.
- Google is now the primary channel for finding builders, with “builder near me” and project-specific terms driving the majority of new enquiries.
- Cost per lead through Google Local Services Ads ranges from £15 to £45, with close rates of 25 to 40% on qualified leads for larger projects.
- Word of mouth remains critical for builders, but it is increasingly validated through online reviews before a homeowner makes contact.
How to Read This Page
This is a reference page, not a blog post. You don’t need to read it top to bottom.
If you want to understand the market size, start at Section 3. If you’re looking at average project values, go to Section 4. If you want to know how customers find builders, go to Section 5. For search demand data, check Section 6. If you want to know what’s going wrong for most businesses, skip to Section 8.
All figures are in GBP and reflect UK market data as of early 2026.
Market Size and Structure
UK Construction Industry (Total Market, 2026)
Residential renovation and improvement is the fastest-growing sub-sector
Commercial Building Businesses
Plus thousands of sole traders and unregistered micro firms
UK Construction Workforce
Including all trades, with skilled labour shortages in most regions
The construction market is enormous, but most builders operate in a very specific niche within it. A local builder doing house extensions in Surrey is not really competing with a national housebuilder. The relevant market for most small to medium builders is the residential renovation, extension, and conversion market in their local area.
This sub-sector is growing because of a long-term trend: homeowners choosing to extend and renovate rather than move, driven by stamp duty costs, housing supply constraints, and the desire to stay in established neighbourhoods with good schools.
Residential Project Market
| Market Segment | Estimated Annual Value (UK) | Trend |
|---|---|---|
| House extensions | £8 – £12 billion | Growing, driven by stamp duty avoidance |
| Loft conversions | £3 – £5 billion | Growing, especially in urban areas |
| Kitchen renovations | £5 – £8 billion | Stable, high demand year-round |
| Bathroom renovations | £3 – £5 billion | Stable |
| Garage conversions | £1 – £2 billion | Growing, no planning permission needed in most cases |
Average Project Values
Project values for builders vary enormously depending on the type of work. Understanding these values is critical for working out how much you can afford to spend acquiring each customer.
| Project Type | Average Value (Labour + Materials) | Notes |
|---|---|---|
| Single-storey rear extension | £55,000 – £110,000 | Highest volume, highest total value |
| Double-storey extension | £70,000 – £150,000 | Premium projects, often architect-led |
| Loft conversion (dormer) | £35,000 – £75,000 | Strong demand in cities |
| Loft conversion (Velux) | £27,500 – £45,000 | Lower cost, no planning permission usually needed |
| Kitchen renovation (full) | £12,000 – £42,000 | Wide range depending on specification |
| Bathroom renovation (full) | £7,000 – £18,000 | Shorter project duration |
| Garage conversion | £15,000 – £30,000 | Growing demand, good margins |
| Garden room / outbuilding | £10,000 – £35,000 | Post-pandemic demand still strong |
Day Rates and Labour Costs
| Rate Type | National Average | London / South East |
|---|---|---|
| General builder day rate | £200 – £350 | £300 – £500 |
| Skilled labourer day rate | £150 – £250 | £200 – £350 |
| Project manager (builder-led) | £250 – £400 | £350 – £550 |
The key insight: extensions and loft conversions are worth 5 to 10 times more than kitchen or bathroom work, so they justify significantly higher marketing spend per lead. A builder spending £45 on a Google lead that converts into a £70,000 extension is getting extraordinary value.
How Customers Find Builders
How homeowners find builders has changed significantly. The traditional route of asking neighbours and friends is still common, but online research now plays a role in almost every hiring decision, even when the initial recommendation came offline.
| Channel | Estimated Share of New Leads | Trend |
|---|---|---|
| Word of mouth / referral | 30 – 40% | Still the strongest channel, but declining share |
| Google Search (organic + ads) | 25 – 35% | Growing, especially for project-specific searches |
| Trade platforms (Checkatrade, MyBuilder) | 15 – 20% | Growing for smaller projects, stable for larger ones |
| Google Business Profile (map pack) | 8 – 12% | Growing fast, especially mobile |
| Social media (Instagram, Facebook) | 5 – 8% | Growing, project photos drive enquiries |
| Architect / designer referral | 5 – 10% | Stable, important for high-value projects |
| Other (directories, print) | 3 – 5% | Declining |
The critical point: even when a homeowner is “referred” by a friend, they will almost always Google the builder’s name, check their website, and read their reviews before making contact. Word of mouth starts the conversation, but your online presence closes it.
For high-value projects (extensions, loft conversions), the research phase is longer. Homeowners typically contact 3 to 5 builders, compare quotes, and check multiple review sources. Having a professional website with a portfolio of similar completed projects is often the difference between making the shortlist and being dismissed.
Search Demand and Keywords
Search demand for builder services is strong and consistent, with a seasonal dip during winter months when outdoor construction slows and a peak in spring when homeowners start planning projects.
Top Search Terms by Volume
| Keyword | Estimated Monthly Searches (UK) | Intent |
|---|---|---|
| builder near me | 60,000 – 90,000 | High intent, broad project type |
| builders [city] | 5,000 – 25,000 per city | Local intent, strong conversion |
| loft conversion [city] | 2,000 – 8,000 per city | High value, planned purchase |
| house extension builders | 15,000 – 25,000 | Highest project value intent |
| kitchen fitter near me | 12,000 – 18,000 | Project-based, good conversion |
| garage conversion | 10,000 – 15,000 | Growing term, good margins |
| local builders | 20,000 – 30,000 | Broad, needs service-specific landing pages |
The seasonal pattern for builders is different from emergency trades. Demand peaks in March to June as homeowners finalise plans for spring and summer projects. Smart builders increase their ad spend in January and February to capture the planning phase, when homeowners are researching but not yet committed.
Customer Acquisition Costs
Customer acquisition costs for builders vary significantly based on the project type. The cost to win a bathroom renovation customer is very different from winning a full house extension.
| Channel | Cost Per Lead | Typical Close Rate | Cost Per Customer |
|---|---|---|---|
| Google Local Services Ads | £15 – £45 | 25 – 40% | £40 – £180 |
| Google Search Ads | £20 – £60 | 20 – 35% | £60 – £300 |
| SEO (organic) | £10 – £30 (amortised) | 30 – 45% | £25 – £100 |
| Checkatrade | £15 – £50 | 25 – 40% | £40 – £200 |
| MyBuilder | £5 – £50 (per shortlist) | 15 – 25% | £35 – £335 |
| Word of mouth | Free | 50 – 70% | Free |
| Architect referral | Free (relationship-based) | 40 – 60% | Free |
The economics of builder marketing are compelling for high-value work. If a house extension is worth £75,000 and you spend £180 to acquire that customer, your acquisition cost is 0.24% of the project value. Even at the expensive end, this is a strong return.
For smaller projects (bathroom renovations at £10,000), the maths are tighter. A £200 acquisition cost represents 2% of the project value, which is manageable but means you need to be selective about which leads you pursue through paid channels.
Red Flags and Common Mistakes
Mistake 1: No portfolio on your website
Homeowners spending £50,000+ on an extension want to see completed projects similar to theirs. If your website has no project gallery, or only has stock images, you are losing leads to competitors who show real work. Invest in professional photography for every major project.
Mistake 2: Treating all leads equally
A lead for a £75,000 extension justifies 10 times the acquisition cost of a lead for a £7,000 bathroom. Run separate campaigns and track ROI by project type, not in aggregate.
Mistake 3: Not building architect relationships
Architects and designers are the highest-quality referral source for builders doing extensions and renovations. They send pre-qualified leads who already have plans and budgets. Yet most builders make no effort to build these relationships. Take three architects in your area to lunch this month.
Mistake 4: Ignoring the planning phase
Most extension and conversion projects have a 3 to 6 month planning phase. If you only market to people ready to hire today, you miss the larger group who are researching and comparing. Create content that helps homeowners plan, and you capture them early in the process.
Mistake 5: No reviews mentioning project types
Generic reviews (“great builder, would recommend”) help, but reviews that mention specific project types (“built a beautiful rear extension in Solihull, finished on time and on budget”) are worth far more for SEO and conversion. Coach your customers to include project details in their reviews.
Methodology
This page is based on a combination of publicly available UK market data, Google search volume data, platform pricing research, and industry reports.
Sources include:
- Office for National Statistics (ONS) construction industry data (2025-2026)
- Royal Institution of Chartered Surveyors (RICS) building cost data
- Federation of Master Builders (FMB) State of Trade reports
- Google Ads Keyword Planner data for UK builder search terms (2025-2026)
- Published pricing from Checkatrade, MyBuilder, Bark, and other trade platforms
- Published cost guides from HomeOwners Alliance and other consumer advisory bodies
- Whito proprietary analysis of UK builder websites and marketing strategies
Market size figures and project values are based on the latest available industry data and may vary significantly by region. London and the South East typically see project values 30 to 50 percent higher than the national average.
Whito is not affiliated with any of the platforms, agencies, or industry bodies mentioned on this page.
About Whito
Whito helps UK businesses figure out what’s working and what’s not in their marketing. We’re not an agency and we don’t manage marketing campaigns for builders. We publish independent research, tools, and audits designed to give business owners the information they need to make better decisions about where to spend their marketing budget.
We built this page because too many builders are making marketing decisions based on guesswork or sales pitches rather than data. This page gives you the numbers so you can benchmark yourself against the rest of the industry.
