January and February were dominated by relentless rain, making it the wettest start to a year for decades. Construction suffered, with developers and main contractors finding it impossible, or at least not cost effective, to continue to build.

With additional costs to keep sites accessible and brick work gangs stood down for weeks on end, the lost capacity will never be fully recovered. However, brighter weather in March saw a welcome bounce in activity, as builders did their best to recover lost ground. Most reported good volumes which continued into April, overall comparing the year to date favourably with Q1 2025.

Geopolitical tensions and their effect on inflation will knock consumer confidence and dampen demand this year. As households battle with inflation, most notably on energy and fuel, decisions to improve or move are being put on hold. The CPA has again lowered its forecast for residential construction output.  Labour’s housebuilding target has never looked further out of reach. With mortgage rates and inflation rising, the prospects of a cut in the Bank of England base rate are dwindling fast, but we are desperate for some stimulus.

We can’t control the market but, as a challenger brand, our sales team is extremely active, focusing on the core activities that deliver results: working smart, supporting our partners with stocking, specification and installation advice, acting as an extension of merchants’ sales teams, and bringing them orders.

The US-Iran conflict has unavoidably accelerated cost price inflation in transport and in materials such as PVC profiles, aluminium and glass, which are highly impacted by oil prices. An exceptional price increase in the second half of the year will be necessary for Keylite, but will be kept to a minimum as we recognise the impact rising prices have on construction activity.

Keylite’s focus is on innovation. We have brought multiple new products to market this year, creating solutions to the Future Homes Standard for developers, and creating margin opportunities for merchants. To promote some of these new innovations, in conjunction with our sister brands in the Keystone Group, we are proud to have hosted 175 National and Regional developers, SAP assessors and specifiers, at a series of Innovation Days between 2025 and 2025.