(Reuters) - UK's Topps Tiles said on Wednesday that it expects stronger demand in the flooring market in 2025, after posting a decline in full-year sales due to challenging market conditions.

The British housing industry and sectors closely linked to it have struggled over the past few years as high interest and mortgage rates kept home buyers away.

However, the sector is anticipating a recovery next year as more potential UK rate cuts could lift consumer confidence amid supportive housing policies by the new Labour government.

The repair, maintenance and improvement market stands to gain in tandem with an improvement in the housing market.

The trading environment remained very challenging across the whole year, with continued weak demand in the domestic repair, maintenance and improvement sector, Topps Tiles said.

"Looking ahead, macro-economic indicators point to a stronger market in 2025. The timing and trajectory of the recovery remains hard to predict," CEO Rob Parker said in a statement.

Building materials supplier SIG also signalled a potential recovery in market conditions after its like-for-like sales fell 4% in the third quarter.

Topps Tiles reported a 4.4% fall in sales for the fourth quarter ended Sept. 28, a less severe decline compared to the rest of the fiscal year.

"The company's fourth quarter LFL performance has improved slightly on easing comparatives. While there is no upswing in momentum yet, we believe we are through the consumer low point," analysts at Peel Hunt said in a note.

The Enderby-headquartered company's sales for the year, excluding revenue from the assets acquired from theadministrators of distributor CTD Tiles, dropped 5.7% to 248 million pounds ($329.5 million).

The company also said the UK competition watchdog has indicated that it intends to review the recently announced CTD acquisition.

($1 = 0.7527 pounds)

(Reporting by DhanushVignesh Babu and Aby Jose Koilparambil in Bengaluru; Editing by Rashmi Aich and Sonia Cheema)