The Mineral Products Association has released a report detailing a drop in UK construction material sales, with London being the worst-hit
The London construction crisis deepens as sales of concrete volumes drop by 32% over the past year, the fastest drop in the whole of the UK.
This comes on the back of the government needing to employ emergency measures for housebuilding in the city to prevent collapse.
Sales of ready-mixed concrete dropped across the country
Ready-mixed concrete sales are used as a monitor for overall construction activity. Sales in Q3 2025 fell by 0.8% compared to Q2, while year-on-year the drop is a concerning 12%.
This maintains the period of decline, with sales continually falling over the last seven years.
London was the worst hit at a 32% drop, with low sales mirroring the housebuilding slowdown, the drop in approval numbers, and the drop in starts and completions.
Aurelie Delannoy, MPA director of Economic Affairs said: “The latest data show that the construction downturn remains entrenched. The mineral products sector is having to operate at crisis levels, with no prospect of recovery in the near term. Construction materials are among the earliest indicators of real activity, and these figures send a clear warning to Government ahead of the Autumn Budget: the UK needs decisive measures to unlock project delivery, rebuild confidence and get growth moving.”
Chris Leese, MPA executive chair, added: “Announcements about infrastructure and planning are all well and good, but for now they remain promises of ‘jam tomorrow’. They do nothing to address the collapse in demand that is draining jobs and capacity from our sector. Without urgent action that results in work on the ground now, the foundations of future delivery — the business investment, the production capacity and the skilled workforce — may not be there at sufficient scale when the country needs them.”
The full data from the MPA can be found here.
Emergency measures to prevent a London housing crash
In October, housing secretary Steve Reed and London mayor Sadiq Khan announced a package of emergency measures to prevent housebuilding delivery in London from collapsing.
Policies include targeting viability through removing design guidance that constrains density and other aspects, relief from development levies, and speeding scheme approvals along. This also includes a slashing of affordable housing targets from 40% to 20%.
The mayor will also be allowed to fast-track housing by reviewing or calling-in housing schemes with 50 or more homes when issues arise.
Housing secretary, Steve Reed, said: “Getting spades in the ground in London is crucial if we want to see the biggest increase in social and affordable housing and meet our target of delivering 1.5 million homes in our Plan for Change.
“I have worked closely with the Mayor of London to give the capital the shot-in-the-arm it needs to ensure more Londoners have an affordable home of their own.”
The mayor of London, Sadiq Khan, said: “Affordable housing has always been a top priority for me as Mayor. We have started more new council homes in London than at any time since the 1970s and, prior to the pandemic, completed more new homes in London than any time since the 1930s. But there’s now a perfect storm facing housebuilding in London due to a combination of high interest rates, the rising cost of construction materials, the impact of the pandemic and ongoing consequences of Brexit. All of this means we are now in the midst of the most difficult period for housebuilding since the global financial crash.
“Urgent action is required, which is why I’ve been working with the government on this package of bold measures. I grew up in a council house, so I know the importance of social and affordable homes. I’m not willing to stand by while the supply of affordable housing for Londoners dries up. With these significant new powers and the initial £322m of funding from the government – plus the short-term emergency action to get more investment flowing into affordable housing – I’m confident that we can kickstart housebuilding and deliver more of the affordable homes Londoners badly need.
“I will always do everything I can to accelerate the delivery of genuinely affordable homes as we continue to build a better, fairer London for everyone.”
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