Rising geopolitical tensions and changes to steel trade tariffs due from July 2026 are continuing to push pressure onto the UK construction sector, fresh research from Savills suggests.
While the full impact has yet to filter through, a sharp increase in the Build: Perspective index points to further build cost rises during the second half of 2026.
Savills said that, longer term, development viability could improve if contractors continue pricing work more competitively and tightening vacancy rates help support rental growth.
Confidence across the UK property market showed signs of improvement at the start of the year, with expectations growing that development viability could begin to recover after several difficult years.
However, the outlook for build costs and project timelines has worsened as geopolitical tensions continue to affect the sector.
According to Savills, the Build: Perspective index jumped to +36 in early 2026 after slipping into negative territory at the end of 2025 for the first time since the index was launched. The latest reading suggests most sectors are now expecting build costs to rise further, alongside longer construction programme lengths in the months ahead.
Geopolitical tensions are now starting to feed through into the construction supply chain, with early signs that materials suppliers are increasing prices in response to higher fossil fuel-related costs.
Read the orginal article: https://propertyindustryeye.com/uk-build-costs-pushed-higher-by-global-instability/?utm_source=rss&utm_medium=rss&utm_campaign=uk-build-costs-pushed-higher-by-global-instability
