Housing Slump Drives 9.3% Collapse in UK Ready-Mixed Concrete Sales

The UK construction sector's housing downturn deepened in the first half of 2026, driving sharp declines in demand for ready-mixed concrete, mortar and aggregates. According to new sales data from the Mineral Products Association (MPA), ready-mixed concrete volumes fell 9.3% in H1 2026 compared to the same period in 2025, while mortar sales—a close proxy for new housing starts—declined by 5.1%. Sand and gravel volumes were down 8.3%. The figures extend the industry's downturn toward a fifth consecutive year.

The MPA's data, based on actual sales volumes from member companies, provides granular evidence that government commitments to accelerate housebuilding have not yet translated into on-the-ground activity. Office for National Statistics (ONS) construction output data for June 2026 confirms the picture: monthly construction output fell 0.1% in June following decreases of 0.8% in May and 0.1% in April. Although total construction output grew 0.3% in Q2 2026 versus Q1 2026, the quarterly increase was driven by a particularly strong March 2026; each month in Q2 itself saw declines.

What Do the Regional Patterns Reveal?

The downturn in demand for construction materials has been particularly severe in London, where ready-mixed concrete sales plummeted 27% in H1 2026 compared to a year earlier, and stood at 55% below 2022 volumes. The scale of the decline reflects continued weakness in both residential development and new commercial office construction. Across Great Britain, the combination of economic uncertainty, affordability pressures, rising construction costs, planning delays and increasing regulatory burdens continues to hold back private investment.

Mortar sales volumes reached their lowest level for two years in Q2 2026, with second-quarter volumes down 1.8% on Q1 2026 and 5.1% below H1 2025 levels. Because mortar is used predominantly in brickwork and masonry, the decline is a direct indicator of reduced new housing starts. The MPA data shows mortar volumes fell after a brief rally in 2025 (+5.2% year-on-year), when the sector had hoped for a sustained recovery.

How Has Infrastructure Demand Responded?

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 H1 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 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 ONS data for Q2 2026 shows infrastructure new work grew by 1.9%, providing the main positive contribution to overall construction output.

What Is the Industry's Response?

In an open letter to the new Chancellor of the Exchequer, John Healey MP, the MPA's new Chief Executive Paul Adeleke warned that industrial capacity is now being lost:

Adeleke stressed the strategic risk to government infrastructure commitments: "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."

The letter called for protection of capital budgets and certainty over project delivery, especially after recent road project cancellations. The combination of uncertainty over project delivery 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.

How Do Material Sales Correlate with Construction Output?

The correlation between concrete sales and construction output is particularly tight in housebuilding. Ready-mixed concrete is used for foundations, floors and structural frames in both residential and commercial projects. The 9.3% decline in H1 2026 aligns closely with the ONS data showing that new work fell 0.3% in June 2026, with repair and maintenance flat (0.0%). The ONS also reported that total construction new orders fell by 11.8% (£1,232 million) in Q2 2026 compared with Q1 2026, driven mainly by declines in private commercial new work and public other new work.

The annual rate of construction output price growth was 1.9% in the 12 months to June 2026, according to the ONS Construction Output Price Indices. This modest inflation rate suggests pricing power in the sector remains weak, consistent with the volume declines reported by the MPA.

What Are the Outlook and Policy Implications?

The MPA data and ONS statistics together paint a picture of a construction sector struggling with demand-side weakness in housebuilding and relying on a narrow set of large infrastructure projects for support. Without policy action to improve planning certainty, reduce regulatory burdens and protect capital budgets, the industry faces the prospect of further capacity losses and a prolonged downturn.

For material suppliers, specifiers and contractors, the immediate implication is clear: housing-linked volumes are unlikely to recover in the near term, and diversification into infrastructure, repair and maintenance, or energetic refurbishment becomes increasingly important. The London market, historically a bellwether for UK construction, shows no signs of stabilisation, with volumes down more than half from 2022 levels.

The next ONS construction output bulletin is scheduled for 11 September 2026. Until then, the MPA's H1 2026 sales data stands as the most comprehensive evidence yet that the UK's housing downturn has deepened, with material consequences for the entire construction supply chain. For further analysis of how housing demand impacts cement and concrete specifications, see our CO₂-neutral concrete portal.