A clearer picture of the house building crisis in London has emerged after latest figures from the BMF (Builders Merchants Federation) reveal the sale of building materials in the capital has fallen behind the rest of the UK.

According to the BMF’s Building Materials Building Index (BMBI), sales across the UK rose by 0.8% over the 12 months to September 2025.

In London they fell by -1.8%, the lowest figure across the nationwide index.

John Newcomb, CEO of the BMF, said: “For some months now, the BMBI has recorded stalled growth in the capital, reflecting a significant lack of confidence among consumers and businesses.

“What we’re not seeing is the typical uptick in demand as the prices of building materials fall.

“Even in regions where there is evidence of growth, there is concern among our members that the market remains very fragile and that the current situation in London may herald further stagnation across the UK.”

Featuring a monthly analysis of sales information from across the UK, the BMBI is considered to be a key barometer for the nation’s economy, tracking detailed sales data across the entire building materials supply chain, from concrete and cement, to bricks and roof tiles.

Minister for Housing and Planning, Matthew Pennycook described the house building situation in London as ‘multifaceted’ during a House of Commons debate last month.

Among comments he made during the debate, the Minister said: “It is not in dispute that housebuilding in London is in crisis.

“In the first quarter of this year, more than a third of London boroughs recorded zero housing starts.

“In short, London housing delivery is on life support, as is broadly recognised across the Chamber.”

The BMF represents 1,010 merchant, supplier and service members with combined sales of over £51.8bn, which employ nearly 193,000 people in the building materials industry.
The trade body called for action in the wake of last month’s Budget to bridge the gulf between the Government’s ambition to build 1.5 million new homes by July 2029, and the state of today’s market.

John Newcomb, added: “We need to see a jumpstart to get the building sector moving.

“There’s a significant gap between what the Government has proposed and what is being achieved out on the ground, and it’s a concern that London is falling behind the rest of the country.

“Without Government intervention it is going to be difficult to move out of a stagnant market, not just in London, but across the UK.”

The BMF’s BMBI is drawn from builders’ merchants sales covering over 88% of builders’ merchants sales throughout Great Britain. Using GfK’s comprehensive point of sale tracking data, it’s considered to be the most reliable measure of sales activity for the sector.