The latest Builders Merchant Building Index (BMBI) report, published in October, shows August’s total like-for-like value sales (adjusted to remove the effect of trading days) were up +0.5% compared to August 2025. Year-on-year like-for-like volume sales were down -5.4%, while prices increased +6.2%.
Year-on-Year
With no difference in trading days, August’s unadjusted value sales were also +0.5% higher than the same month a year before. Unadjusted volumes were down -5.4% and prices up by +6.2%.
By value, nine of the twelve categories sold more with Workwear & Safetywear (+22.8%) the standout category. Timber & Joinery Products sold +0.7% more, while the largest category, Heavy Building Materials sold -0.8% less. Ironmongery (-1.5%) and Tools (-0.6%) were the weakest categories.
Latest 12 months
In the 12 months September 2025 to August 2026, like-for-like value sales were -1.4% down compared to the previous 12-month period (September 2024 to August 2025). Like-for-like volume sales were down -5.5%, while prices were up +4.3%.
With one extra trading day in the most recent 12-month period, unadjusted value sales were -1.0% lower year-on-year. Unadjusted volume sales declined -5.1% and prices increased +4.3%. By value, seven categories sold more, with Renewables & Water Saving (+7.0%) the strongest category. Timber and Joinery Products was up +1.1% but Heavy Building Materials was the weakest category (-3.3%).
Derrick McFarland, Managing Director, Keystone Lintels and BMBI’s Expert for Steel Lintels, comments:
“While Q2 2026 saw an improvement in overall volumes versus Q1 2026, it was still lower than the same period in 2025. In the half year, volumes have dropped back to 2024 levels with little optimism for the coming months.
“The impact of the fluctuating, even unpredictable, geopolitical events, the domestic political revolving door and continued cost inflation all add unrelenting pressure to the house building sector and manufacturers alike. These are not new headlines over the past five or so years; it’s just the same impacts keep happening, and more frequently.
“However, the strategic vision of improving the quality of houses being built in the future to the Future Homes Standard 2025 is extremely important, yet it does add additional cost. The Future Homes Standard is the government’s plan to make every new home “zero-carbon ready”: efficient enough that no further work will be needed to decarbonise it as the electricity grid gets cleaner. It tightens both Part L (energy) and Part F (ventilation) of the Building Regulations and brings in a new way of calculating compliance.
“Regulation is required to drive forward improvements, yet fairness may be an issue, and planning reforms have sped up the process. The fundamentals of excellent quality homes, a well-regulated sector and timely planning are being put in place for a better future.
“Affordability, consumer confidence, and economic viability for developers remain the short-to-medium term core issues. Will a new Prime Minister be able to unlock the potential and understand the significant contribution house building makes to the UK economy?
“Material pressures for house builders look set to continue, with the new UK Steel Strategy, which is already having an impact, and which will continue to increase steel prices, domestically made or imported. In addition, the EU Carbon Border Adjustment Mechanism being implemented on 1st Jan 2027 will maintain or add further increases. Partnering, with longer-term commitments, will be something house builders will continue to adopt with key suppliers to secure best-priced materials.”
Launched in 2015, the award winning monthly Builders Merchant Building Index (BMBI) report is the only reliable measure of repair, maintenance & improvement (RMI) activity in the UK. Filling an important gap, the BMBI can be widely used in construction, and by economists, Government, national media, commentators and influencers outside the industry.
BMBI Experts speak exclusively for their markets, explaining trends, issues and opportunities. For the latest reports, Expert comments and Round Table videos from the BMBI, visit www.bmbi.co.uk.
