Demand for core construction materials remained at alarmingly weak levels throughout 2025, placing pressure on manufacturers, threatening skilled jobs and raising concerns over future supply capacity, according to new data from the Mineral Products Association (MPA).
While sales of some products stabilised at a low base in the final quarter of the year, the overall picture showed little improvement. Over 2025 as a whole, demand fell for a fourth consecutive year across several key materials, including concrete (-9.9%), aggregates (-1.6%) and asphalt (-1.1%), leaving volumes at historic lows. Mortar sales rose by 5.2% annually, although momentum weakened in the second half of the year.
The MPA said sustained weakness in demand, combined with rising costs, is forcing businesses to cut capacity and defer investment. Sites are being mothballed, skilled jobs put at risk and domestic supply chains weakened, particularly for materials that cannot be imported at scale.
Aurelie Delannoy, director of economic affairs at the MPA, said:
“The prolonged downturn in demand for mineral products showed no sign of easing at the end of 2025. This reflects the fragile state of both the UK construction sector and the wider economy, as well as persistently weak investment confidence.
“These materials are used at the very start of construction projects, and sustained weakness in demand shows Britain is not meeting its commitments to build more homes or speed up the delivery of critical infrastructure.”
The trade body said the four-year downturn reflects a chronic shortage of new work across housing, commercial development and infrastructure.
London hit hardest
London has borne the brunt of the slowdown, particularly in ready-mixed concrete, where annual sales volumes fell by a record 27% in 2025 and were 39% below 2023 levels. Economic uncertainty, affordability pressures and project viability issues have reduced residential and commercial activity.
Planning delays linked to backlogs at the Building Safety Regulator have further constrained high-rise developments, with the scale of the fall in concrete demand suggesting housing delivery is falling well short of stated targets.
Delannoy warned that uncertainty around policy intervention could exacerbate delays.
“The slow pace of decision-making on pre-announced emergency measures to support housebuilding in London, including changes to affordable housing thresholds and temporary relief from the Community Infrastructure Levy, risks delaying activity further, as shovel-ready projects are paused until the support is in place.”
She added that relaxed affordable housing criteria may also encourage revisions to existing planning applications, creating further delays.
Housing recovery still elusive
Housebuilding, which accounts for around 25% of construction aggregates demand and 30% of ready-mixed concrete demand, has yet to show signs of a sustained recovery. Although mortgage rates have fallen to a three-year low, affordability remains the dominant constraint, with rising unemployment also weighing on confidence.
Mortar sales, which closely track housing output, rose over the year but weakened towards the end of 2025, with volumes falling by 2% in Q4.
Infrastructure offers limited support
Infrastructure activity provided partial support. HS2 continued to contribute to demand, although volumes of aggregates and concrete tapered off during the year following the programme reset. Early works at Sizewell C are expected to support demand in 2026, but there are few other major schemes ready to offset weakness elsewhere.
Roadbuilding remains a particular weak spot, with asphalt demand at levels not seen since 2013 amid project delays, scheme cancellations and constrained local authority budgets.
Chris Leese, executive chair of the MPA, said:
“Construction materials are one of the clearest early indicators of activity on the ground. Despite the scale of the political ambition, the Autumn Budget fell short on growth, and without swift, decisive action to restore confidence and unlock investment, the UK risks undermining its ability to deliver the housing and infrastructure it needs.”
Wider data reinforces warning
Dr David Crosthwaite, chief economist at BCIS, said new data from the MPA and the Department for Business and Trade (DBT) confirm the depth of the downturn.
“Published DBT data, which date back to 2013, show annual deliveries of ready-mixed concrete hit a record low in 2025 while MPA data highlighted a 27% decrease in annual materials sales volumes in London.”
He said falling brick and concrete block deliveries, alongside rising stocks, point to a deepening residential slowdown.
“Developers are stuck. They face decision-making holdups at regulatory and government levels, reduced buyer appetite and pressure from levies and rising building costs. It’s a recipe we’ve seen time and again in delayed starts, site closures and missed housing targets.”
Looking ahead, the MPA warned that higher business costs in 2026, subdued economic growth and weak investor confidence are likely to weigh on demand, with any sustained recovery in materials volumes unlikely before 2027.
