{"id":394853,"date":"2026-01-28T10:58:16","date_gmt":"2026-01-28T10:58:16","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/394853\/"},"modified":"2026-01-28T10:58:16","modified_gmt":"2026-01-28T10:58:16","slug":"materials-suppliers-warn-of-bleak-2026-without-housing-stimulus","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/394853\/","title":{"rendered":"Materials suppliers warn of bleak 2026 without housing stimulus"},"content":{"rendered":"

The Construction Leadership Council\u2019s Material Supply Chain Group says market conditions remain bleak, with no meaningful recovery visible across housing, residential repair and maintenance or major commercial work.<\/p>\n

The group is calling for a targeted housing stimulus to restore confidence, unlock stalled demand and prevent long-term damage to the UK\u2019s construction materials supply base.<\/p>\n

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Concrete volumes, a key indicator of activity, are down around 28% nationally over the past four years. In London, traditionally the busiest market, volumes have fallen by 39% in just two years.<\/p>\n

Suppliers say there are no material shortages, with supply often exceeding demand.<\/p>\n

Brick manufacturers that expanded capacity in anticipation of higher housing output are now holding large stock levels and reassessing how much production to maintain.<\/p>\n

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Producers warn that capacity cannot be restored quickly once it is switched off.<\/p>\n

Where sites have been mothballed, investment delayed or jobs cut, it could take up to six months to ramp production if demand improves \u2014 and much longer if the downturn drags on.<\/p>\n

Rising costs, weak demand and cashflow pressures have already led to a steady stream of supply chain administrations, forcing firms to prioritise cost control and margin protection.<\/p>\n

The group says construction\u2019s poor performance is being driven by structural issues, including delayed investment decisions, client caution, economic volatility and persistently low consumer confidence, all contributing to a sharp fall in new orders.<\/p>\n

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Extended PCSA periods are compounding the problem, with projects slow to move from agreement into physical build, delaying revenue and increasing risk for major contractors and their supply chains.<\/p>\n

While large infrastructure programmes, including the prison build, continue to progress, suppliers say this is nowhere near enough to offset the collapse in housing.<\/p>\n

The government\u2019s pledge to deliver 1.5 million new homes is far off track, it warns, held back by planning constraints, regulatory delays and weak investor confidence.<\/p>\n

Although hopes remain that higher water sector spending, infrastructure investment and planning reform could support a medium-term recovery, materials suppliers say sustained growth will only return with renewed investment in new homes and residential RMI.<\/p>\n

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