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Pocketa · Kitchen Market Watch

CommentaryCosts and pricing

Building-material inflation is being passed through even while demand remains weak

By Taz

What changed

Weak demand and rising input prices can exist at the same time. A quieter market does not automatically mean every project cost will fall.

What to check in your project

Treat merchant inflation as a reason to keep quotes dated and itemised, not as a percentage to add across an entire kitchen budget.

Primary source: Travis Perkins plc · 2026 Half Year Results · 4 August 2026

A weak renovation or construction market does not necessarily produce falling material prices.

Travis Perkins’ latest results provide a useful example. Group revenue fell 1.8% in the six months to 30 June 2026, with the company pointing to lower volumes in challenging market conditions. At the same time, it said building-material price inflation partly offset that decline and that the General Merchant business had made progress through more effective pass-through of price inflation.

For homeowners, that is not a forecast for the price of a fitted kitchen. It is evidence that some of the materials and components sitting around a kitchen project can still face upward price pressure even when overall demand is subdued.

At a glance

What it means

Weak demand and rising input prices can exist at the same time. A quieter market does not automatically mean every project cost will fall.

What changed

Travis Perkins reported a 1.8% fall in first-half revenue but said building-material price inflation partly offset lower volumes and that improved inflation pass-through supported its General Merchant margin.

Practical takeaway

Treat merchant inflation as a reason to keep quotes dated and itemised, not as a percentage to add across an entire kitchen budget.

What it means

Kitchen projects draw from several different supply chains.

Cabinetry, appliances and worktops may come through specialist manufacturers or retailers. Plumbing products, timber, sheet materials, fixings, adhesives, electrical materials and parts of the building work may instead be bought through merchants by the installer or other trades.

Those categories do not necessarily move in price together.

Travis Perkins is the UK’s largest distributor of building materials to trade customers, so its results provide a broad signal about the environment being experienced by builders and installers rather than a kitchen-specific price index. The company said lower volumes remained a feature of challenging market conditions, but price inflation was still contributing to revenue and was being passed through more effectively.

That combination matters because it challenges a simple assumption: if demand is weak, quotations should automatically become cheaper.

They may in some areas. They may not in others.

What changed

For the six months to 30 June 2026, Travis Perkins reported group revenue of £2.258 billion, down 1.8% from the same period in 2025. It attributed the reduction to lower volumes in challenging markets and the previous disposal of Staircraft, partly offset by building-material price inflation.

The company also said gross-margin progress in its General Merchant business had been helped by more effective pass-through of price inflation, alongside changes in sales mix and procurement gains.

During the half-year results presentation, management said some suppliers of oil-based plastic products had increased prices by approximately 15% to 20%. That figure refers to particular supplier increases described by Travis Perkins. It is not a general rate of inflation for building materials and should not be applied to a complete kitchen quotation.

The wider picture is therefore mixed rather than uniformly inflationary. Volumes are weak, some input prices are rising, businesses are trying to pass those increases through and individual product categories can behave very differently.

Why it matters for homeowners

A kitchen quote can contain products priced at several different points in time.

The kitchen furniture may have one quote-validity period. Appliances may be promotional or model-specific. A fabricator may price a worktop separately. Building, plumbing and electrical work may include materials bought later by the installer.

If one part of that chain is exposed to an upstream price increase, a retailer or contractor may either absorb it, pass it on or reprice only the affected line.

That is why a broad claim that “materials are up” is not enough information to change a project budget.

The reverse is also true. Weak construction demand does not establish that a particular kitchen, tap, cable, waste fitting, sheet product or building material should now cost less.

The useful evidence is the dated quotation for the actual scope.

Practical takeaway

Keep the quotation date, expiry date and revision number with the specification it prices.

Where a quote remains provisional, identify the lines that can still move before order. If a contractor has included materials within a labour-and-materials figure, ask whether that figure is fixed once accepted or can be revised if supplier prices change.

For larger building elements around the kitchen, separate labour from major materials where that improves clarity.

If a later quotation is higher, compare it with the earlier version line by line before treating the increase as general inflation. A changed product, quantity, installation scope or allowance can look like a price increase even when it is actually a specification change.

Travis Perkins’ results are evidence of price pressure in parts of the building-material supply chain. They are not evidence that every kitchen project should rise by the same amount.

Optional next step

If this affects your kitchen project

Check the related quote, product or delivery note while the detail is fresh.

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