2016 Predictions on the Sharing Economy and Home Exchange
by Giles Adams, Partner and President of 3RD HOME
According to the most recent PwC report, the sharing economy’s value is expected to grow from a current £10 billion to £225 billion by 2025.
3RD HOME is one of the world’s leading home exchange businesses, covering 70+ destinations globally. Looking ahead, President, Giles Adams highlights what the sharing economy may offer us in 2016, the challenges for suppliers and what the government is doing to support the growth of the industry:
“The UK has witnessed a tremendous growth in the sharing economy this year with a spike in start-ups companies developing to meet the growing consumer demand. From carpooling to house swapping and house sitting, the sharing economy has empowered people to hire out their power drills and spare rooms and get the most from their assets. It is estimated that 25% of UK adults are sharing online. By 2025 the sharing economy is estimated to reach 50% market share in key sectors such as holiday accommodation and car-sharing/car rental.
“As property is one of our key assets, it comes as no surprise that more and more property owners want to utilise what they have to either generate extra income or value in alternative ways, or travel and stay in other destinations. Between October 2014 and October 2015, we grew our membership base by almost 60% to over 4,000 active members. Based on this growth rate we are expecting to reach 5,000 members by early next year and 10,000 by the end of 2016.
“At the moment consumer hesitance is still a major factor to overcome, as the PwC report shows. Although 72% of consumers can see themselves being part of the sharing economy in the next two years, 57% still have some concerns over safety, variation in standards and regulations.
“3RD HOME carries out verification checks on all members and their properties. As applicants cannot get into the club without having a home of their own in the programme, there is a very strong community sense of ‘you do unto my property as you would have me do unto yours’. Insurance coverage is also provided against accidental damage as a safety net, but we find it is rarely necessary.
“These security concerns have been picked by the UK government, which published its paper ‘Sharing economy: government response to the independent review’ in March this year. The government is keen on making the UK the capital of the world’s sharing economy and is working on integrating the sharing economy safely into today’s business landscape by bringing laws up to speed with modern behaviour and consumer preferences.”
“So looking forward to next year I believe that the strong backup from the government, innovations from suppliers such as 3RD HOME and increasing consumer awareness of the benefits of sharing assets will indeed make the growth of the sharing economy one of the stand out trends for this decade.”
For further information, please visit www.3rdhome.com. For additional commentary or a phone interview with Giles Adams, please contact:
André Kappelhoff, firstname.lastname@example.org, 0208 614 7500