Quarter Two started with strong paving sales in April as merchants stocked up for summer ahead of forecast shortages in Indian sandstone and porcelain. After a lull in May, June performed better than expected, with sunny weather driving demand for laying paving and enjoying outdoor spaces.

The last summer this hot was 2020, but consumer demand is not at Covid levels. Rising material costs and economic headwinds are straining finances and dampening confidence, hitting the volume end of the market hardest as homeowners cancel or delay garden projects. The Iran conflict continues to disrupt the paving supply chain. The blockade of the Strait of Hormuz has restricted gas supplies to India, forcing several porcelain manufacturers to suspend production for around six weeks, creating short-term supply problems. Merchants adapted quickly by switching to European porcelain. Although typically more expensive, it offers consistently higher quality and more stable supply and shipping costs.

Bekstone’s high-quality walling stone, manufactured in the Cotswolds, has bucked the national trend with strong first-half sales. However, even in more affluent areas, developers face difficulties securing planning permission. Elsewhere, many are cautious and build predominantly to order. In response, Bekstone is reintroducing cast stone and investing in further range developments to support a wider range of projects.

Government stimulus is needed to get Britain building again. While Help to Buy is unlikely to return soon, private housing needs a stimulus to give housebuilders confidence to bring more sites forward. Measures supporting homebuyers, improving affordability and unlocking stalled developments would boost demand and give the supply chain confidence to invest. The Government’s housing targets will only be achieved if the private sector has the demand and confidence to build.

Looking ahead, Q3 demand is likely to remain subdued. Shipping charges have more than doubled in recent weeks, adding further pressure. We continue to manage shipping costs carefully to protect customers, provide value and support merchants in driving demand through digital tools and targeted marketing

We are also working with walling stockists to develop more regional and sustainable products, helping them differentiate locally and better support housebuilders. Ultimately, greater confidence in private housing is needed to stimulate demand and encourage more developments, benefiting the entire construction products supply chain.