Urgent action required to get 1.5 million homes pledge on track: BMF

Latest monthly figures from the BMF’s Builders Merchant Building Index (BMBI) show that December saw a 2.5% dip in like-for-like value sales compared to the same month in 2024

Trading conditions are on a par with the aftermath of the 2008 market crash in the UK’s building materials sector, according to the BMF (Builders Merchants Federation).

The scale of economic malaise is reflected in a significant number of insolvencies and companies entering administration across the industry.

Within the last 12 months alone, the BMF - the fourth largest trade association in the construction sector - has seen 24 members, with a turnover of £242 million and employing 1,059 staff, go into insolvency.

A further five members, with a total turnover of more than £60 million and 129 employees, have entered into administration.

And latest monthly figures from the BMF’s Builders Merchant Building Index (BMBI) show that December saw a 2.5% dip in like-for-like value sales compared to the same month in 2024.

 John Newcomb, CEO of the BMF, said: “These are not figures that reflect the government’s manifesto pledge to build 1.5 million homes.

“Feedback from across our sector all points to the fact that trading conditions in building materials are on a par, if not worse, than the fallout from the market crash of 2008.

“The number of insolvencies and companies going into administration in 2025 is almost the same amount as the previous four years combined. With no green shoots on the horizon, the outlook is dire.”

The BMF represents 1,020 members with combined sales of £52 billion pounds and employs almost 209,000 staff.

John added: “With more than 75% of products manufactured in the UK, the sector must be protected for the future stability of the nation’s economy.”

Martin Armour, commercial director for Burton ’The Roofing People,’ and BMF regional chair for the North and North East, said: “Trading conditions across the building materials sector are on a par with the 2008 crash, with a very real risk that they worsen further unless action is taken.

 “Confidence is extremely fragile, driven by prolonged uncertainty and a lack of meaningful intervention to stimulate demand.”

David Young, CEO of Bradfords Building Supplies, is BMF regional chair in the South West of England. He said: “We’ve never seen volumes as low as this. There’s a total silence from government to address the issue.

“There are many headwinds facing the industry. We still have 70,000 homes in the South West waiting to be built, which cannot move forward because of the phosphate and nitrate situation, and National Insurance increases are driving up inflation.”

In Scotland, which has its own house building targets separate from the 1.5 million homes pledged for England, Gordon Banks, a former Labour Shadow Minister and BMF Regional Chair, shares similar concerns.