BMF Raises Building Materials Growth Forecast for 2025

The Builders Merchants Federation (BMF) has upgraded its outlook for the UK building materials market, forecasting 2.5% growth for 2025 — up from earlier, more cautious predictions.

According to the trade body, the improvement reflects rising demand in residential refurbishment, small-scale housing, and repair projects, as confidence begins to return to parts of the market after a slower 2024.

Market sentiment turning positive

The BMF said merchant sales of timber, joinery, and heavy building materials have all picked up slightly since mid-summer, with consumer spending and smaller contractor workloads showing signs of recovery.

While national housebuilding remains subdued, regional construction — particularly in southern England — has shown more resilience, supported by extensions, loft conversions, and retrofit projects.

What it means for Dorset builders

For builders and contractors across Bournemouth, Poole, Christchurch, and wider Dorset, the outlook suggests:

• Stronger local demand for core materials like blocks, plasterboard, insulation, and timber.

• Improving merchant stock levels and shorter lead times compared with early 2024.

• Greater stability in materials pricing, although inflation in cement and steel products remains a risk.

Local merchants and suppliers across Dorset and the South Coast are expected to benefit most from steady domestic repair and renovation work, as homeowners continue to prioritise energy-efficient upgrades and modest extensions.

BMF’s industry message

The BMF emphasised that while the 2.5% figure is encouraging, the market remains “fragile” and dependent on government housing policy, planning reform, and stable interest rates. Nevertheless, the trade body believes 2025 could mark the start of a modest recovery after two years of contraction.