UK build costs pushed higher by global instability
Original Article Summary
Geopolitical tensions are beginning to feed through into the construction supply chain
PropMatch Curated Analysis
Savills research signals accelerating UK build cost pressures in 2026, driven by geopolitical instability, trade tariff changes, and supply chain disruption, with the Build: Perspective index at its highest reading since launch. Longer-term viability may improve if contractor competition intensifies and vacancy rates tighten to support rental growth.
Investor Relevance
Developers and BTR investors must update project appraisals to reflect higher build cost assumptions and longer programme lengths through 2026; ignoring this signal risks underpricing development risk or misjudging viability. The offsetting signals — competitive contractor pricing and rental growth from tighter supply — are relevant to acquisition and hold strategy decisions.
Original Source:
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