Concrete and mortar slump as housing downturn deepens, MPA

New data from the Mineral Products Association shows ready-mixed concrete sales were down 9.3% in H1 2026 compared to a year earlier.

The demand for key construction materials needed to build Britain's new homes weakened further during the first half of 2026, according to the latest sales data from the Mineral Products Association (MPA). 

Sales of ready-mixed concrete, aggregates and mortar are now well below last year's levels, extending the industry's economic malaise towards a fifth consecutive year. Despite repeated government commitments to boost housebuilding and accelerate infrastructure delivery, activity on the ground continues to move in the opposite direction.

The MPA's latest sales figures show a consistent deterioration across all essential construction materials used in housebuilding. Ready-mixed concrete sales volumes fell by 9.3% in the first half of 2026 compared with the same period last year, while sand and gravel volumes were down 8.3%. Mortar sales, which closely track new housing starts, declined by 5.1%, with second-quarter volumes reaching their lowest level for two years. Other housebuilding indicators, including from the Office for National Statistics, paint the same picture.

The downturn in demand for materials has been particularly severe in London, where ready-mixed concrete sales have plummeted 27% in the first half of 2026 compared to a year earlier, and stood at an astonishing 55% below 2022 volumes. The scale of the decline reflects continued weakness in both residential development and new commercial office construction.

Taken together, the figures show that the housebuilding slowdown intensified during 2026, as economic uncertainty, affordability pressures, rising construction costs, planning delays and increasing regulatory pressures continue to hold back private investment across much of the construction sector.

Infrastructure-linked demand has proved comparatively more resilient, although not nearly enough to offset the deterioration in housebuilding and wider private sector construction. Asphalt sales volumes increased by 3.2% in the first half of 2026, albeit from a low base. Crushed rock sales have remained broadly stable in the first half (0.7%), supported by regional pockets of growth in local roads maintenance activity. HS2 and Sizewell C also remain important sources of demand, alongside offshore wind developments, grid connections work and the start of some water schemes, particularly in the East of England and Scotland.

Beyond these schemes, however, the list of infrastructure projects currently underway remains patchy. The combination of uncertainty over project delivery, exemplified by the recent cancellation of yet more major road schemes, and growing pressure on future capital spending ahead of this year's Budget, risks further undermining business confidence and delaying investment decisions across the wider construction supply chain. 

MPA sales volumes in GB: change on the previous period (seasonally adjusted)

In an open letter to the new Chancellor of the Exchequer, John Healey MP, the MPA's new Chief Executive Paul Adeleke said: "Given the scale of this continuing decline, industrial capacity is now being lost. Plants are being mothballed, drivers are being taken off the road as trucks sit idle and skilled people are being made redundant. There is currently zero confidence to invest in people, sites or equipment for the future. This has to change.

"Without MPA members, nothing in your manifesto gets built, and nothing in the NISTA pipeline gets delivered. That's why this long-term decline is so concerning - aspirations of building enough houses, schools and hospitals, or modernising infrastructure in the future will become even harder to realise.

"As you look towards your first Budget, it is essential that our industry can have the confidence that capital budgets will be protected and that the work they have planned as businesses will actually happen, especially after recent road project cancellations."

Aurelie Delannoy, Director of Economic Affairs at the MPA, added: "The latest figures show that the housing downturn has deepened, with sales of key materials needed to build homes falling below last year's levels. Activity is expected to remain subdued for the remainder of the year, as energy-related cost pressures exacerbate an already difficult situation. For our industry, the first half of the year has been bad enough to effectively guarantee that 2026 will be a fifth consecutive year of declining demand.

"While some infrastructure projects continue to support demand, they cannot compensate for the widespread weakness in housebuilding and commercial construction. A handful of major projects can help to sustain activity for the businesses directly involved, but they do not replace the broad-based demand that comes from a healthy housing market."

MPA says restoring business confidence will require both stronger housing demand and a more consistent pipeline of infrastructure projects to encourage long-term private investment throughout the supply chain.

Lex Russell, Managing Director of Cemex UK Materials, commenting as MPA Chair, concluded: "The latest figures paint a deeply concerning picture for our industry. Sustained low demand is placing jobs, investment and long-term manufacturing capability at risk. The solution is clear: we need policies that unlock housing delivery, accelerate infrastructure projects and create the conditions for growth. Our sector stands ready to deliver."