As housing pressures mount and the UK edges toward its 1.5 million home target, the demand for construction materials is soaring. Aggregates, the sand, gravel, and crushed rock that form the bedrock of development, are being consumed at unprecedented rates. Every single house requires around 200 tonnes of aggregate, meaning the government’s housing ambition alone translates to roughly 300 million tonnes of material.
A shrinking supply
Despite the urgency, the latest BDS report paints a sobering picture: aggregate reserves are shrinking across Great Britain. Since December 2021, we've seen a 7% drop in accessible reserves, and some regions, like the South East, face particularly short supply horizons. These figures hint at a supply crunch that could put pressure on construction, infrastructure, and economic growth. The replenishment rate, i.e. the tonnage being extracted compared to the tonnage gaining planning consent, in the 10 years to 2023 was 61% for sand and gravel. This sharp drop in supply is clearly unsustainable.
Dormant sites: From “No” to “Maybe”
For landowners, especially those with mineral-bearing land, this moment represents a once-overlooked opportunity now worth re-examining. Sites that were previously ruled out due to technical, economic, or planning limitations may now be viable thanks to advancements in processing plant technology and a more urgent appetite from operators.
This is not speculative. Many operators are actively revisiting past surveys and geological assessments. Technological improvements, from mobile screening plants to more efficient washing systems, mean that formerly borderline deposits can now be economically extracted and processed with less environmental footprint and lower capital costs.
Planning bottlenecks & market appetite
Compounding the challenge is planning as over 256 million tonnes of reserves are locked in applications awaiting determination. The ongoing fall in consented reserves and the push in local development plans for more houses to be built is likely to see demand from operators rise for sites with mineral extraction potential.
For landowners, this creates two very real windows:
- Early-stage engagement with operators to explore partnerships or option agreements
- Proactive planning to reassess previous refusals or deferred applications considering current priorities and technology
Strategic steps for landowners
Landowners with mineral-bearing sites, especially those with historic survey data or previous interest from operators, should consider:
- Conducting geological and economic re-evaluations of their land
- Engaging early with mineral consultants and planners to understand local development frameworks
- Exploring commercial structures, such as options to lease or sell that can unlock dormant land value
William Gagie, Partner and Head of Minerals, said: “At Fisher German, we are already supporting a number of landowners in reassessing long-dormant assets. We believe now is the time to get ahead of the curve, before the demand surge fully materialises and reserve competition intensifies.”