Understand the factors shaping insurance repair costs
Every quarter, the quantity surveyors within Sedgwick's Repair Solutions team analyse the UK building and construction market to identify the key drivers of cost affecting insurance-funded repairs.
Drawing on market data, supplier intelligence and sector expertise, our Quarterly Building Cost Review provides an independent assessment of current pricing trends, labour market conditions and wider economic influences that may impact repair costs in the months ahead.
The report also helps insurers, loss adjusters and claims professionals understand the factors influencing contractor pricing, material availability and repair programme delivery, ensuring informed decision-making in an evolving market.
Contractor cost inflation remains stable Contractor costs increased by just 0.56% during Q2 2026, indicating a continued moderation in inflationary pressures across the repair sector.
Inflation forecasts remain on track Year-to-date contractor cost increases now stand at 4.09%, supporting expectations of around 5% inflation across 2026.
Material prices continue to fluctuate While 15 material categories recorded average increases of 3.4%, nine categories experienced average reductions of 3.37%, highlighting ongoing volatility across the supply chain.
Further price increases anticipated Contractors continue to receive notifications of additional material price rises throughout 2026, with expectations of further increases in 2027 remaining a significant concern.
Confidence growing for 2027 Despite cost pressures, many contractors remain optimistic about the year ahead, citing improving profitability and opportunities for business growth.
Labour shortages persist Recruitment challenges continue across the sector, particularly for multi-trade operatives, carpenters, roofers and plumbers, placing pressure on repair capacity and delivery times.
Download and discover:
Insight into the latest construction cost and inflation trends affecting insurance repairs
Analysis of labour and skills shortages across key trades
Visibility of emerging risks within construction supply chains
Forward-looking commentary on market conditions and cost pressures
Expert perspectives from Sedgwick's quantity surveying specialists.
