Builders Merchant Q1 Sales Hampered by Challenging Conditions

Sales figures for the first quarter of 2026, released in the latest BMF Builders Merchants Building Index (BMBI), once again highlight the challenging conditions facing the builders’ merchants sector. The first quarter has also been notable for the downward revision of growth forecasts for the coming year. 

With construction output weakening, particularly in private housing, merchants have reported falling sales in the first quarter of the year. The impact could already be seen before the start of the conflict in Iran in March, and the knock-on effect this has had on oil prices, associated energy costs and anticipated inflationary increases, with construction work slowed by wet weather in January and February. 

Quarter 1 2026 v Quarter 1 2025

Looking at the quarter in more detail, year-on-year total value sales in Q1 2026 declined by -3.2% compared with Q1 2025 with no difference in trading days between the two periods. However, volume sales fell noticeably, down by -8.1%, whereas average prices increased by +5.4%. 

Heavy Building Materials, the largest of 12 product categories, was the key driver of these results, with sales volumes down by -11.9% and average price up +5.7%. Landscaping also recorded a notable decline, with value sales down by -7.0%. 

Timber & Joinery Products, the second-largest category, recorded value growth of +0.9%, marginally outperforming the total market. Six smaller categories also saw value sales increase, led by one of the smallest, Renewables & Water Saving (+14.3%). Kitchens and Bathrooms increased by +1.8% in value, while Plumbing, Heating and Electrical increased by just 0.1%. 

Quarter 1 2026 v Quarter 4 2025

Value sales in Q1 2026 were somewhat weaker than in Q4 2025. Like-for-like value sales (adjusted to remove the impact of trading days) were -0.6% lower than in the previous quarter. Like-for-like volume sales were down by -3.3%. 

With two more trading days in Q1 2026, unadjusted value sales for the Total Builders Merchants Market were up +2.7% on Q4 2025. Volume sales (-0.1%) fell marginally, while prices increased by +2.8%.  Once again, the largest category, Heavy Building Materials, was the weakest, with value sales (+1.4%) lower than the total market average. 

Moving Annual Total

April 2025 to March 2026 v April 2024 to March 2025 

There was no change in like-for-like value sales in the latest 12-month period compared to the previous 12 months.  However, with one less trading day in the latest period, Total Builders Merchants’ unadjusted value sales for the last 12 months were -0.4% lower than in the previous period. Volume sales fell by -1.4%, but prices increased by +1.0%. 

Heavy Building Materials was the weakest category, with value sales down -2.4%. Timber and Joinery Products (+2.1%) was one of nine categories where value sales increased, led by Renewables and Water Saving, up by +8.5%. 

Emile van der Ryst, Key Account Manager – Trade & DIY at NiQ GfK, said:

“2026 has begun in a similarly challenging fashion to the end of 2025 for the Builders Merchants sector, with UK construction continuing to face significant headwinds. Looking ahead, uncertainty remains elevated, feeding growing concerns about housebuilding targets and the need for government intervention. Private housing and RMI are expected to remain under pressure, with costs continuing to weigh on confidence, especially as the knock-on effects of the Iran war are yet to be fully understood.”. 

John Newcomb, CEO of the BMF, said:

“Early signs of improvement in construction output in February were quickly reversed after the start of the Middle East conflict in March. The expectation now is that the conflict will further intensify pressures, through rising prices and renewed inflation.  This will impact household budgets as well as construction costs and continue to suppress demand for domestic repair, maintenance, and improvement work and new housing, two critical areas for builders ' and merchants’ sales. It is difficult to envisage a significant upturn in the coming year without government action to speed up planning and provide incentives to unlock the housing market.”

Source : BMF

Image : BMF

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