CPA Weekly Notes – 2nd May 2025

Issue No. 1148, 2nd May 2025 FOR MEMBERS ONLY

Association Activities

CPA Spring Lunch 2025 
Thank you to all our sponsors and guests that attended the lunch yesterday and made it such a success. We will be sharing pictures from the event next week.

CPA Webinar: Green Paper on on construction products reform with Building Safety Minister Alex Norris MP
The video of this event is now available to watch here. Please share the link amongst colleagues if they were unable to watch the webinar live. 

CPA Webinar:  U.S. Tariff Disruption, Uncertainty and the CPA Construction Forecasts 
U.S. tariff disruption has increased uncertainty and made market forecasting even more difficult than during Covid-19 Pandemic and the 2008 financial crisis. This webinar – hosted by the CPA Economics Director, Professor Noble Francis – focussed on the potential impacts for the U.K economy and construction sector. The recording of this webinar will be next week.
CPA Weekly UK Economic and Construction Update
The latest weekly update is available here, including:

• Insolvency Service Construction Insolvencies (February 2025)
• HMRC UK Residential Property Transactions (March 2025)
• Bank of England UK Mortgage Approvals (March 2025)
• Nationwide UK House Price Index (April 2025)
• Taylor Wimpey Full Year Results (April 2025)
• Persimmon AGM Trading Statement (May 2025)
• Travis Perkins Trading Q1 Update (April 2025)

The CPA’s Spring Forecasts were published on Monday, 28th April and are available for members to download from the CPA Website. Also note that the ONS has suspended its monthly UK building materials price data (and other producer price data) due to concerns about its reliability, which the CPA has been highlighting since the impacts of the energy and price spikes in Spring 2022.

CPA Briefing Paper:  The Impacts of U.S. Tariffs
Following strong demand from members and government alike, the CPA’s economics team has published a briefing paper on the ‘Impacts of U.S. Tariffs’.  This document will be revised as the situation develops, and made available to CPA members every Friday with our Weekly UK Economic and Construction Update.  To receive this document via email every Friday please contact noble.francis@constructionproducts.org.uk ; alternatively, you can click here to read it now.

Weekly Calendar of Meetings

• Peter Caplehorn, CPA Chief Executive, will meet with directors at the MHCLG, OPSS and Building Safety Regulator to discuss product issues; will attend a CONIAC KPWC Working Group meeting to discuss new health and safety requirements; will join a meeting hosted by BSI to discuss a Manufacturers’ Information Hub; and will attend the weekly meeting of the Construction Leadership Council’s Task Force.
• Professor Noble Francis, CPA Economics Director, will present to the UK Construction Week London about a “10-year Look Back and Ahead”.
• Mark Wilkinson, Senior Technical Manager, will attend a meeting hosted by BSI with the Designated Standards Coordination Group (DESCO) about the anticipated revision of Regulation 1025 and the alternatives to a Proof of Concept model.
• Hanna Clarke, Digital and Policy Manager, will have a variety of meetings with industry colleagues and civil servants around competency.

Economics Update

Economy

• The CBI’s Distributive Trades Survey showed retail sales volumes fell, according to a weighted balance of -8% from -41% in March. This was the seventh straight month of decline. Retailers expected sales to fall at a quicker pace next month (a balance of -33%).

Housing

According to Nationwide, UK house prices fell 0.6% month-on-month in April. Prices rose 3.4% in annual terms, slowing from 3.9% in March. In April, the average UK house price was £270,752. The lender noted that the softening in house price growth was to be expected, given the changes to stamp duty at the start of the month, which is likely to have resulted in buyers having brought forward their purchases to March.

Data from the Bank of England shows that the number of mortgages approved for house purchase totalled 64,309 in March. This was a 1.2% fall from February and the lowest monthly volume since July 2024, as expected ahead of changes to stamp duty thresholds. Nevertheless, approvals were 4.5% higher in annual terms.

In March, the number of property transactions in the UK totalled 177,370, according to HMRC. This represents a spike in transactions completing before the change in stamp duty thresholds from 1 April. This was the second-highest monthly level of property transactions since June 2021, which was also a spike in activity ahead of a change in stamp duty.

For further information contact rebecca.larkin@constructionproducts.org.uk

Industry News

Association for Specialist Fire Protection
The ASFP are hosting two seminars in Edinburgh and London focused on the latest practices in passive fire protection along with updates on regulations. This networking event is designed to provide valuable insights into industry trends, standards, and practical applications that are crucial for ensuring safety and compliance. To find our more please follow the links below.
https://asfp.org.uk/page/AGMLondonSeminar
https://asfp.org.uk/page/ScotlandSeminar

Govt Opens Consultation on Improving Integrity of Voluntary Carbon Markets
Government seeks to clarify and test their proposed policy and governance framework for helping to ensure the integrity of voluntary carbon and nature markets.  Find the consultation here, deadline is 10 July 2025.  For further details contact Jane Thornback.

BRE rebrands the Home Quality Mark to BREEAM Residential
BRE has streamlined its offerings and the Home Quality Mark (HMQ) is now rebranded and BRE has released it as residential sustainability assessment, BREEAM UK New Construction: Residential V6.1.  Find details here.  For further details contact Jane Thornback.

Govt Opens Consultation on the UK Carbon Border Adjustment Mechanism (CBAM)
This is a technical consultation to get feedback on the drafting of the primary legislation of the UK CBAM.  The purpose of a CBAM is to place a carbon price on specified goods imported to the UK from sectors that are at risk of carbon leakage.  The aim being to protect UK manufacturing.  Find details here.  For further details contact Jane Thornback.

CPA in the News

Expect surge in infrastructure activity, says RICS
The concerns over the impact of US tariffs on the construction industry mirror warnings made by the Construction Products Association (CPA) earlier this week. The CPA warned tariffs represented “a big risk” to the sector’s recovery, and that big private sector projects could stutter while investors wait to gauge the outcome and impact of global import duty hikes.
Construction News | 02/05/2025 | Online

Trump Tariffs: US could face UK retaliation
 Noble Francis, economics director of the Construction Products Association, said 15 per cent of UK construction products were exported last year, with the US the second largest market
Construction News | 02/05/2025 | Print

Batten supply challenges and PIR insulation price increases reported
Peter Caplehorn, CEO of the Construction Products Association, co-chairs of the Construction Leadership Council’s Material Supply Chain Group, stated: “At present, the materials supply chain is functioning well and product availability is generally good, although several regions reported challenges with aircrete and insulation blocks and certain timber products, including CLS, carcassing and battens.
Total Contractor | 24/04/2025 | Online

UK steel market: importers to brace themselves
There is good news for overseas long steel producers too. The Construction Products Association (CPA) expects construction volumes to grow by 2.1% this year and 4% in 2026. The driver will be the private housing sector. Here, volumes will increase by 6% in 2025 and 8% in 2026. This will be ensured by the inflow of private investment. They will increase by 3% in 2025 and by 4% in 2026.
GMK | 11/04/2025 | Online

Labour MP calls for ‘fiercely vigilant’ approach to foreign investment in UK infrastructure
Rebecca Larkin, head of research at the Construction Products Association, told Construction News the steel plant crisis “highlights the quandary of funding large capital investments, particularly infrastructure”. “Private finance, whether it is from a domestic company or a foreign state, will primarily be seeking a financial return and low risk,” she added. “Direct funding on the government books is aiming to drive long-term economic growth and employment.”
Construction News | 16/04/2025 | Online

Thames Water claims cost of sewage works repairs has risen 10-fold since 2021
The Construction Products Association estimates that infrastructure construction costs have risen by 22.3 per cent from the start of 2021 to the end of 2024, due to double-digit increases in both skilled labour and building material prices.
FT | 17 April 2025 | Online (via subscription)