The cost of settling property damage claims is rising, driven by escalating reinstatement costs and limited access to affordable alternative accommodation. Inflation has pushed up the price of building materials and skilled labour, while the effect of United States tariffs on global supply chains has added an additional layer of uncertainty to build costs in the UK. A chronic housing shortage due to planning restraints, demographic pressures and speculation around property tax reforms, has driven up rents and made temporary housing harder to secure. Together, these factors are expected to keep property damage claim costs on an upward trajectory.