Trade body’s building materials index reflects London house building slump

Sales across the UK rose by 0.8% over the 12 months to September 2025, according to the BMF’s Building Materials Building Index (BMBI)

A clearer picture of the housebuilding crisis in London has emerged after the latest figures from the BMF (Builders Merchants Federation) revealed that the sale of building materials in the capital has fallen behind the rest of the UK.

According to the BMF’s Building Materials Building Index (BMBI), sales across the UK rose by 0.8% over the 12 months to September 2025. In London, they fell by -1.8%, the lowest figure across the nationwide index.

John Newcomb, CEO of the BMF, said: “For some months now, the BMBI has recorded stalled growth in the capital, reflecting a significant lack of confidence among consumers and businesses.

“What we’re not seeing is the typical uptick in demand as the prices of building materials fall.

“Even in regions where there is evidence of growth, there is concern among our members that the market remains very fragile and that the current situation in London may herald further stagnation across the UK.”

Featuring a monthly analysis of sales information from across the UK, the BMBI is considered a key barometer of the nation’s economy, tracking detailed sales data across the entire building materials supply chain, from concrete and cement to bricks and roof tiles.

Minister for Housing and Planning, Matthew Pennycook, described the house building situation in London as ‘multifaceted’ during a House of Commons debate last month.

Among the comments he made during the debate, the Minister said: “It is not in dispute that housebuilding in London is in crisis.

“In the first quarter of this year, more than a third of London boroughs recorded zero housing starts. In short, London housing delivery is on life support, as is broadly recognised across the Chamber.”

The BMF represents 1,010 merchant, supplier and service members with combined sales of over £51.8bn, which employ nearly 193,000 people in the building materials industry.

The trade body called for action in the wake of last month’s Budget to bridge the gulf between the Government’s ambition to build 1.5 million new homes by July 2029, and the state of today’s market.

The BMF’s BMBI is drawn from builders’ merchants’ sales, covering over 88% of their sales throughout Great Britain.

Using GfK’s comprehensive point-of-sale tracking data, it’s considered the most reliable measure of sales activity for the sector.