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Fernando de Querol Cumbrera
Research expert covering construction, loans, leasing, savings, and debt
Get in touch with us nowThe construction output price in the United Kingdom has reached an annual growth rate of 1.5 percent in March 2024. Construction costs have been increasing at a lower rate than in 2022, when the year-over-year growth rate reached over 10 percent in May and June of that year. Public and private housing was the construction segment with the highest output price increase.
Several factors influence construction material costs, including supply and demand, regulatory requirements, and transportation logistics. Manufacturing efficiency and global trade policies also play a big part, along with economic factors like inflation and currency fluctuations. In June 2022, the price of construction materials for new houses in the UK were 45 percent higher than in 2017.
Labor costs are often one of the largest expenses in construction projects. That is due to the skilled nature of the work, which has a high demand for specialized trades. The construction sector's labor costs accounted for around 65 percent of the sector's earnings in the United Kingdom in 2022. Between 2019 and 2022, the size of labor costs as a share of the construction sector rose by more than three percentage points, indicating that labor costs have increased at a faster rate than the overall revenue of the industry.
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Development of construction costs
Cost per square meter
Material prices
Fixtures and fittings
Labor costs
Land prices
Cost of equipment and machinery
Shortages and challenges
* For commercial use only
Basic Account
Starter Account
The statistic on this page is a Premium Statistic and is included in this account.
Professional Account
1 All prices do not include sales tax. The account requires an annual contract and will renew after one year to the regular list price.