While not exciting, quarter three 2024 has at least held consistent tonnage aligned to quarter two, being a stable period in terms of volume. Stable is good, but to put the current level of activity into perspective, the National House Building Council (NHBC) registered 28,724 new homes across the UK in Q3. That’s up from an extreme low of 20,449 in Q2, but over the last 15 years only one three-month period was weaker than the last quarter, with 28,353 new homes being registered in Q3 2012, when the country was only just struggling to emerge from the financial crisis.

The House Builder sector has shown signs of improvement on a weekly house sales per site basis, however the lack of new building sites being opened has curtailed any significant growth. Reforms in the planning system are expected to streamline processes, offering house builders and the supply chain much needed planning approvals.

The Repair Maintenance & Improvement (RMI) sector, on the other hand, has not seen any notable summer demand, and with housebuilders changing cavity widths from 100mm to 150mm to provide their homes with higher levels of insulation, the merchant and the manufacture need to be managing stock levels extremely closely. New enquiry’s numbers suggest there is work out there, but not in great volumes.

Continued mortgage rate cuts should help those who need to extend or buy, but the impact of the budget will only drive material prices upwards. The new building regulations now offer home buyers a distinctive choice in terms of energy efficiency compared to older properties. The trend is for new home buyers to be more likely to put the environment as the keystone of their decision making.

Opportunities to meet demand within manufacturing will rely on continued investment in automation, something we have been doing for years. Innovation in joined up forecasting, in stock ranging, and working with our merchants in best-partnerships so they are prepared for the builders’ demands will be critical for a modern supply chain.

We have to be forward thinking and optimistic for the future.