UK Housebuilders Face Double-Digit Cost Inflation as Iran War Lifts Oil Above $100

UK construction cost inflation could surpass 10% if oil stays above $100 a barrel, the Construction Products Association warned on September 20, 2026, as Middle East conflict drives up energy and plastics input prices. Construction product price inflation was 6% in the year to July. Brent crude traded at $103 a barrel on Friday, up more than 40% since the Iran conflict began in February 2026. Manufacturers' long-term contracts have delayed the pass-through, but Mr Francis said the effects are "only just starting to come through." Product prices in July 2026 were 50% above January 2020 levels. The Home Builders Federation estimates building a house now costs £76,000 more than five years ago, and a high-rise flat £98,000 more, squeezing viability and future housing supply. Developer Quintain, behind Wembley Park, must sell assets to repay £100m to shareholders by June 2027 and is refinancing debt.