The latest Builders Merchant Building Index (BMBI) report, published in July, shows that builders鈥� merchants鈥� total value sales in May 2025 were unchanged compared to May 2024. Volumes rose 2.1% year-on-year but prices fell by 2.1%.
However, with one less trading day in May 2025 than 2024, average daily takings were up by 5.0%.
The renewables & water saving category was the biggest climber, up 23.4%. Sales of heavy building materials, the largest category, were down by 0.4%.
Comparing May to April 2025, value sales were unchanged; volumes were up 1.0% but prices slipped by 1.0%.
Total takings in the 12 months to May 2025 were down 1.8% on the previous 12-month period, with volumes down 0.6% lower and prices down 1.2%. Both of the two largest categories, Timber & Joinery Products (-3.5%) and Heavy Building Materials (-2.0%), declined.
Mike Rigby, managing director of MRA Research which produces the BMBI report, said: 鈥淢ay hasn鈥檛 been a month for merchants to write home about, with no change in value sales compared to weak May sales last year, or April this year. Where there were improvements in volume, many were offset by a drop in prices leaving builders鈥� merchants treading water.鈥�
鈥淭he latest Homes England stats, published on 26th June, show there was an improvement in housebuilding starts (+5%) and completions (+12%) between 1 April 2024 and 31 March 2025, compared to the previous year. But with just 38,000 new houses starting construction during that period, it鈥檚 clear that as we pass one year of Labour government, nothing much has changed with regards to injecting some oomph into housebuilding.聽
鈥淲hether improvements are on the horizon remains to be seen, in what is turning out to be a particularly unpredictable year. Overall consumer confidence, as tracked by GfK鈥檚 long running index, shows a two-point increase in June to -18, following a three-point improvement in May. This upward trend could be a good omen for the RMI and housing markets, particularly as there was also a +5-point increase in how consumers see the economy shaping up over the next 12 months. Mortgage and remortgage approvals are on the up too.聽
鈥淏ut, and currently there鈥檚 always a but, Inflation is stuck at 3.4%, partially due to higher food costs, so many households will still be feeling the pinch. With expected hikes in petrol prices later this year caused by conflict in the Middle East oil prices are likely to rise. That will put discretionary spend under pressure, pushing households to reassess their priorities with some postponing home improvement projects which will slow the flow of work in the pipeline for trades and merchants.鈥�
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