UK builders face record monthly rise in cost inflation

UK builders saw record cost inflation in March as the Iran war hit orders. The sector index remained below growth levels for a 15th consecutive month.

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Construction firms in the United Kingdom are grappling with the most significant monthly surge in cost inflation on record, according to the latest industry data. The sharp rise in expenses, coupled with the geopolitical fallout from the war in Iran, has severely dampened new orders and business confidence across the sector.

A timber frame residence under construction at a Bellway housing site in Horwich, Britain, captured in July 2025. REUTERS/Phil Noble
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