With over 30 years in the builders’ merchant trade, Andrew brings deep knowledge of everything from civils to timber. Now part of the Gilmore team, he helps customers make the right choices with advice built on decades of hands-on experience.
Rising oil and gas prices following escalating tensions in the Middle East are expected to feed through into UK construction costs within weeks, according to industry sources.
Construction costs have already increased by an estimated 15 to 20 percent since 2020, driven largely by higher prices for key materials such as steel and cement. Both rely heavily on energy-intensive production, leaving the sector particularly exposed to further volatility in global energy markets.
Recent commentary from the Construction Products Association has also highlighted ongoing cost pressures across the sector, with energy and raw material pricing continuing to influence overall construction output and pricing trends.
Suppliers and analysts point to a typical delay between movements in energy prices and their impact on construction costs.
“There is usually a lag of around four to eight weeks before changes in energy markets are reflected in material pricing,” said a spokesperson at Gilmore Building Supplies.
The impact is not limited to manufacturing. Higher fuel costs also affect transport and distribution, contributing to broader upward pressure across the supply chain.
Recent data has already shown continued increases in material prices, particularly in housing-related construction, suggesting limited capacity for the sector to absorb further cost shocks.
Smaller contractors are expected to feel the effects more quickly than larger firms, due to differences in purchasing power and procurement strategies.
“Larger firms may be able to absorb short-term fluctuations or secure materials in advance, but smaller builders often purchase on a week-to-week basis, making them more exposed to sudden changes,” the spokesperson added.
For homeowners, the effects are likely to be reflected in rising quotes for extensions and renovation work, particularly as demand increases during the spring and summer months.
Industry observers note that even relatively small residential projects remain sensitive to global energy trends, with sustained increases in energy prices likely to place further pressure on project costs in the near term.
