Sales of building materials across the UK have fallen to their lowest level in five years, according to the latest Builders Merchant Building Index (BMBI) from the Builders Merchants Federation (BMF).

The figures highlight that the sector was already flatlining before recent geopolitical tensions in the Middle East added further uncertainty.

The index shows that volume sales of building materials dropped by 7.2% in January 2026, compared to the same month in 2025. With a combined member turnover of £52 billion, the BMF’s 1,020 members span the supply chain, manufacturing, distributing, and supplying products including insulation, timber, steel, bricks, tiles, plumbing, heating, doors, windows, paints, landscaping materials, and ironmongery.

Cash Flow and Construction Output Concerns

John Newcomb, CEO of the BMF, said:

“If building materials are not being sold, construction is not taking place. We are facing a major ‘cost of doing business’ crisis, and there are no green shoots of recovery on the horizon. These figures for the start of the New Year were crippling, showing the sector was on the cusp of significant decline before the Middle East situation. The last time we saw January figures like this was at the beginning of the Covid crisis.”

Newcomb added that the decline in material sales is indicative of broader industry challenges:

“We are not seeing government’s target of 1.5 million new homes being built, and that’s really bad news for the economy. Action needs to be taken, and we urgently need some type of stimulus, such as the Freedom To Buy scheme proposed by the Home Builders Federation, to get the country building again.”

Rising Insolvencies Among Suppliers

Within the last 12 months, 24 BMF members, with a combined turnover of £242 million and 1,059 employees, have gone into insolvency. A further five members, with turnover of more than £60 million and 129 staff, have entered administration.

The figures underline the fragility of the UK’s building materials sector and its close connection to overall construction output.

Supply Chain Pressures and Middle East Impact

BMF is also monitoring the potential impact of the Middle East situation on the supply chain, particularly regarding fuel, energy costs, and oil-based materials used in manufacturing.

Newcomb, a founding member and Co-Chair of the Construction Leadership Council’s Material Supply Chain Group, said:

“Concerns about rising energy and fuel bills are creating an evolving picture in the supply chain. 75 per cent of building materials are made in the UK, but our members use steel, ceramics, oils, resins, glass and many other materials to manufacture their goods, requiring energy and raw materials. Through the CLC’s Material Supply Chain Group, we will be keeping a close watch on the situation in the Middle East as it develops.”

The BMF continues to call for urgent government action to stimulate the market and support building activity across the UK.