Builders merchants across the UK are maintaining strong sales growth, reflecting the continued rise in property values. DIY home improvement, small builder home improvements and self-build homes have all contributed to the merchants' good performance.

The Builders Merchants Federation (BMF), the trade association which represents over 1,000 merchant outlets in the UK, said that home owners had taken advantage of the increase in property values and extended their homes.

The BMF says that its members saw a seasonally-adjusted 6.3% rise in sales during November 2003, on top of October's 3.9% hike - over the same period last year.

President of the BMF, John Hauxwell, reflecting on the rise in property values last year said: “This is good news for builders’ merchants who naturally benefit from a strong property market coupled with low interest rates. And it's not only new construction that stimulates sales of building materials: many home owners are choosing to improve and extend their existing houses, often taking advantage of the equity available in them."

“This strength is reflected in all types of work, as much of our members' business comes from smaller projects like house extensions. We think that current housing market conditions will continue to stimulate this type of activity and further strengthen demand for building materials."

Hauxwell reckons that the upward trend in house price growth is likely to be maintained, saying, "Here at the BMF we don't see any reason to disagree with the big mortgage lenders who expect an extension of the up-trend in 2004.”

In other news, builders’ merchant Travis Perkins group also said it had benefited from a housebuilding and home-improvement boom. The group mainly deals in timber, plumbing and heating equipment and has strong links with the self-build sector of the market.

The company makes more than two-thirds of its revenues from repairs, maintenance and home improvements and said it had made good progress in 2003 "helped by generally favourable market conditions particularly in the first six months."