NuGen Properties

Merchants brace for economic uncertainty to continue


The latest Building Materials Forecast Report from the Builders Merchants Federation (BMF) predicts collective sales revenue to fall 2.2% in the first quarter of 2024, compared to Q1 2023, before improving to show growth of just 0.4% for the year as a whole.

However, 0.4% growth in 2024 will do little to recapture lost ground, following a 3.5% decline in merchant sales in 2023.

Even with growth improving to 1% in 2025, according to forecasts, it will be several years before sales return to 2022 levels.

BMF chief executive John Newcomb said: “Fourteen interest rate rises alongside the effects of a cost-of-living crisis have taken their toll both on consumer confidence and the new house-building market for well over a year, we have seen both volume and value sales through builders’ merchants fall during 2023.

“This mirrors much of what has been observed in the wider UK economy and its impact on the housing market, where new housebuilding registrations have plummeted to their lowest levels since the start of the pandemic and close to levels last seen in 2009.   Against this background, we are unlikely to see a dramatic upturn in 2024, but we are cautiously optimistic that we will see the first signs of recovery.”

BMF economist Thomas Lowe added:  “In addition to the slowdown in new house-building,  the current burden on household finances means repair, maintenance and improvement work (RMI) has been competing with other priorities for consumers’ cash.  This has resulted in households postponing larger scale RMI projects. However, the data shows evidence of lightside RMI projects remaining relatively strong with all lightside categories seeing year on year value growth in the recent quarter, providing one ray of light within a pretty gloomy picture overall.

“While market conditions are expected to remain volatile, arguably the long-term economic health of  the merchanting sector is improving. As net inflation of building materials settles faster than the macroeconomic picture, this may allow for a faster recovery once consumption starts to pick up again as pressures on household disposable income start to alleviate.”

Got a story? Email [email protected]



Source link


Customer Reviews

Nugen Properties

Customer Reviews

Dan Morten 18/01/22

Google
Easy to work with, Jordan and the team were professional and were easy to communicate with.
Would highly recommend.

Di Hayes 20/08/22

Google
NuGen Properties built an extension to the rear of my property, replacing the old conservatory. I am so pleased I chose this company. From the initial quotation, through the build and after they were professional, polite & well mannered. They kept the site tidy throughout the build and kept me informed of each stage as it happened. The work was finished to a good standard and I have had nothing but compliments on their work. I am already planning for them to come back and do some more work for me in a few months. I would 100% recommend them.

Bradley Eyles 20/06/23

Google
Nugen were fantastic throughout the works they carried out on my property, Jordan provided constant updates and ensure any questions I had were always answered. All works were completed in a timely fashion, on budget and exceptional customer service. Highly recommend!

Sonny Carter-heyward 29/02/22

Google
Brilliant service, renovated my house to make a dream a reality. Thanks guys

sitemanager 22/01/23

Google
Great firm to communicate with fast and good quality work.