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NEWS NI HOUSEBUILDER INVESTIGATES THE IMPACT OF THE ISRAEL/US-IRAN WAR, AS RISING OIL, ENERGY AND MATERIAL PRICES AND ECONOMIC UNCERTAINTY DENT CONSUMER AND COMMERCIAL CONFIDENCE…
Housebuilding activity hit by conflict
construction activity in 2026. CPA expects private housing repair, maintenance and improvement will face the steepest decline at 8%, with research by FMB and the HomeOwners Alliance also indicating one in five homeowners are putting domestic projects on hold. Brian Berry, FMB Chief Executive, said, “Since the situation in Iran, our members have been sharing their concerns about the impact on material costs and oil prices - combined with the threat of work potentially drying up. “This CPA forecast of an 8% fall in repair and maintenance work will hit small, local firms like our members the hardest.” CPA downgraded its forecast sharply from winter predictions, pointing to rising oil and energy costs from the Iran conflict as the primary driver. The trade body warned of ‘sharp cost increases’ in the second half of 2026 and falling confidence among homeowners. “Expectations around housebuilding are now flat, which aligns with the comments from leading housebuilders in their recent trading updates and results statements.” www.rics.org www.fmb.org.uk www.constructionproducts.org.uk WANT TO KNOW MORE?
Northern Ireland’s housebuilding sector is hopeful the Israel/US- Iran war will soon come to an end, after industry data highlighted the conflict’s negative impact on activity. Key trade route the Strait of Hormuz has remained largely closed due to the conflict, pushing up the cost of oil, energy and material prices. Consumer and commercial confidence have suffered as a result. In its latest Construction Monitor just published for Q1 2026, the Royal Institution of Chartered Surveyors (RICS) reports respective declines of 13% and 7% in private and public housebuilding activity in Northern Ireland. Total construction workloads are down by 15% for the quarter, with private industrial activity falling by 32%, private commercial by 14%, other public works by 13% and infrastructure by 11%. While respondents in NI expect workloads to be broadly flat over the next year, 44% anticipate profit margins will decline due to geopolitical
challenges and their impact on inflation. Skills shortages persist, with 63% reporting a shortage of quantity surveyors, 51% for bricklayers and 46% for other construction professionals. Simon Rubinsohn, RICS Chief Economist, said, “The impact of the war in the Middle East is clearly visible in the Q1 RICS Construction Monitor. Rising material costs, a tougher credit environment and increased pressure on margins are already leading some developers to slow construction activity. “More significantly, plans for the next 12 months are being scaled back most notably in the private sector. Expectations around housebuilding are now flat, which aligns with the comments from leading housebuilders in their recent trading updates and results statements.” The Federation of Master Builders (FMB) also reports sector impact from the conflict, citing the Construction Products Association (CPA) spring forecast of a 2.5% decline in total
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