New data from the Mineral Products Association (MPA) show that demand for core construction materials remains stuck at alarmingly weak levels, putting the UK supply chain at risk.
聽While sales of some products stabilised at a low base in the fourth quarter of 2025, there was no change in the overall picture. Over 2025 as a whole, demand for key materials including concrete (-9.9%), aggregates (-1.6%) and asphalt (-1.1%) fell for a fourth consecutive year, leaving sales volumes at historic low levels. A 5.2% annual increase in mortar sales masked a sharp loss of momentum in the second half of the year.
Last year's聽9.9% fall in concrete demand聽means that production has not been as low as it is today since the early 1950s.聽
Weak materials demand, alongside rising costs, is forcing businesses to take difficult decisions to cut capacity and control costs, according to MPA. Sites are being mothballed, investment deferred and jobs put at risk. These pressures threaten the longer-term resilience of domestic supply chains for essential mineral products, many of which cannot be realistically imported, potentially undermining the delivery of future housing and infrastructure, the association warns.
Director of economic affairs Aurelie Delannoy said: 鈥淭he 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.鈥�
The London market has been particularly slow, with ready-mixed concrete sales down 27% in 2025 and 39% below 2023 levels.
As has been well documented, economic uncertainty, affordability constraints and construction project viability challenges have severely curtailed new build activity in both the residential and commercial sectors in the capital, compounded by planning delays to high-rise developments linked to backlogs at the Building Safety Regulator.
Delannoy added: 鈥淭he government also risks making things worse in the near term. The slow pace of decision-making on pre-announced emergency measures to support house-building 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. It also creates an incentive to revisit existing planning applications to meet relaxed affordable housing criteria, causing additional delays.鈥�
Housebuilding, which accounts for almost 25% of construction aggregates demand and around 30% of ready-mixed concrete demand, has yet to show signs of a sustained recovery. Despite mortgage rates falling to a three-year low, affordability remains the dominant constraint on demand. Mortar sales, which closely track house-building activity, rose by 5.2% in 2025 but momentum faded in the second half of the year, culminating in a 2% fall in volumes in the final quarter.
Infrastructure activity has provided only partial support. HS2 continues to contribute to demand, but volumes of aggregates and concrete tapered off during 2025, partly reflecting the programme reset. Early construction at Sizewell C is expected to underpin demand for aggregates this year, but there are few other major projects ready to offset weakness elsewhere. A particular weak spot is roads, where asphalt demand remains at low levels not seen since 2013 amid persistent project delays, the cancellation of 10 major schemes by the Labour government and tight local authority budgets constraining maintenance works.
MPA executive chair Chris Leese said: 鈥溌芾蛟� 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. When material demand remains this weak for this long, it points to serious delivery failures and growing risks to the UK鈥檚 domestic supply capacity.鈥�
With the current state of the market, the MPA expects no upturn in the market in 2026, with investor confidence remaining low, a sluggish economy and more increases in business costs ahead, including from higher business rates and a fuel duty increase in September.