NEWSROUND
No let-up in housing output woe, says CPA
Construction activity is likely to contract 2.5% in 2026, according to the Construction Products Association.
The CPA’s latest set of forecasts, reveals that it is increasingly likely the second half of this year will see both a drop in construction demand and sharp cost increases, especially in the two largest sectors, private housing and private housing repair, maintenance, and improvement (rm&i).
Overall, private housing output is forecast to fall by 7.0% in 2026 and remain flat in 2027. Private housing is the largest construction
sector. After the persistent rain in January and February, which affected activity, there was stronger activity in March and April, with house builders eager to build out to meet demand for homebuyers who had mortgages approved before the latest increase in mortgage rates.
The CPA says its key concern is what happens to demand as these higher interest rates are factored into purchasing decisions, especially as affordability in areas with higher house prices was already a key constraint for house builders. In addition, sharp cost increases will
Government ups boiler grants and works on electricity prices
Households wanting to switch from oil or LPG heating systems to a heat pump can get an increased grant to do so, the Government announced last month. Under the Boiler Upgrade Scheme (BUS), homeowners can get £7,500 grant towards replacing their existing gas or oil system with an air source or ground source heat pump. This rises to £9,000 for those switching from oil or LPG.
The Government has also released plans to unhitch the costs
of electricity from wholesale gas prices, something that Wolseley UK called for in its report launched at the Houses of Parliament last year. Voluntary long term fixed contracts will be offered to existing low carbon generators to protect consumers from sudden bill increases when gas prices spike. There will also be an updated Electricity Generator Levy, increasing the rate from 45% to 55%, meaning a bigger share of boosted profits is returned to government. Prime Minister Sir Keir Starmer
said: “We need to get off the fossil fuel rollercoaster – this will make energy bills more stable and take the pressure off family budgets. When global gas prices spike, people here shouldn’t be picking up the tab. Our focus is simple: easing pressure on household budgets now, while building a homegrown energy system that protects families from global instability in the years ahead.”
MKM announces financial results for 2025
Builders’ merchant MKM Building Supplies (MKM), has announced full year results for the year ended 30 September 2025.
The group reports continuing investment has driven market outperformance and improved profitability, increasing market share to 14.8% (FY2024: 13.3%) The results also showed revenue growth of 12% to
4
£1,103.8m (FY2024: £986.2m) driven by Organic growth across established branches and continued development of newer branches. CEO Kate Tinsley, said: “MKM delivered a strong performance in 2025, continuing to outperform the market and growing both revenue and profitability despite ongoing challenging conditions. “While the market remains
uncertain, with ongoing inflationary pressures and wider geopolitical factors impacting the supply chain, we are well positioned to manage these challenges.
“Our focus remains on
supporting our customers, investing in our branch network and delivering long term, sustainable growth through empowered, well supported local teams.”
exacerbate site viability issues, leading to more problems for house builders. .
There is still expected to be significant growth in infrastructure, the third-largest construction sector, given longer-term existing contracts, pipelines of activity and funding in place for future projects. CPA head of construction research, Rebecca Larkin, said: “At the start of this year, there was a degree of cautious optimism over the outlook for construction activity
in 2026 and 2027 across most sectors. However, this has been replaced by stark concerns over global factors and oil and industrial energy cost rises, leading to a spike in inflation. The direct impact on construction will be double-digit construction product price inflation, especially in oil-based products and energy-intensive products, where UK industrial energy prices can account for up to one-third of total costs for manufacturers. Indirectly, however, increases in inflation across the economy will also hit confidence and spending or investment from potential homebuyers, homeowners, businesses, clients and investors. As a result, the largest construction impacts over the next 12-18 months are likely to be on private housing and private housing rm&i.”
Howdens opens Expo space in Watford
Trade-only kitchen supplier Howdens has opened a brand- new Expo space in Watford. Open to homeowners and tradespeople alike, the new Expo opening, at Watford Expo Unit B, Olds Approach Industrial Estate, Northwood, Watford, WD189TL, showcases over 35 kitchen and fitted bedroom collections, from best on budget shaker designs to premium modern slab styles, plus joinery, doors, flooring and more, with all kitchen cabinets backed by a 25-year guarantee. Austin Cooke, managing director for trade at Howdens, said; “Howdens is creating a destination that’s designed to make choosing your ideal kitchen or bedroom easy and accessible.”
The Expo was officially opened in a ribbon-cutting ceremony by local Councillor Stephen King.
www.buildersmerchantsjournal.net May 2026
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