Construction Output Price Indices (OPIs) from January 2014 to September 2025, UK. Summary

The construction output price in the United Kingdom has reached an annual growth rate of *** percent in June 2025 compared to the same month of the previous year. Construction costs had been increasing at a lower rate than in 2022 and 2023, but started rising again slowly in late 2024. The year-over-year growth rate was over ** percent in May and July 2022. Public and private housing was the construction segment with the highest output price increase. How have material costs developed over the years? 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 ** percent higher than in 2015. What is the largest component of those costs? 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 ** percent of the sector's earnings in the United Kingdom in 2024. In the past years, the size of labor costs as a share of the construction sector have increased slightly, but they were still lower than in before 2014. As of June 2025, the construction output price growth rate has been revised to *** percent.

In 2024, there were approximately 36,000 job vacancies in the construction sector in the United Kingdom. In 2022, the labor demand for construction reached its highest point throughout the timeline. The number of openings in the industry also peaked in 2007 with 26,000 vacancies, coinciding with the end of the housing bubble.

This dataset contains the indices of UK hourly Construction Wage Costs (quarterly; not seasonally adjusted; 2000 = 100) and UK Construction Material Prices for New Housing, Other New Work, Repair and Maintenance, and All Work (monthly; 2010 = 100).

From 2015 to 2024, the construction output prices of public and private housing increased by ***** percent in the United Kingdom (UK). Meanwhile, the prices of industrial buildings increased by ***** percent during that period, and infrastructure prices by ***** percent. Housing and industrial are the segments that increased the most during that period. Balfour Beatty ranked in the past years as the construction firm with the largest revenue in the UK.

In 2024, London had the highest housing construction costs for residential buildings in the United Kingdom. The expense of building an apartment high-rise in the UK's capital amounted to ***** British pounds per square meter of internal area, while the cost of townhouses were ***** British pounds per square meter. Manchester was the second city on the list with the highest residential construction costs.

Between 2018 and 2021, the cost of construction materials mostly increased in the United Kingdom. There was only a small decrease in their price in 2020. In 2021, the costs reached a *** percent growth rate. Moreover, building materials costs are expected to grow by **** percent in 2022. Nevertheless, these figures were calculated at the end of 2021, and therefore do not reflect the developments seen afterwards.

This article reports on work to develop and test improvements to the methodology and reporting of the construction price and cost indices. Source agency: Business, Innovation and Skills Designation: Supporting material Language: English Alternative title: Improvements to the Construction Price Indices and impacts

NB Responsibility for the production of PCIs transferred to the Office for National Statistics (ONS) on 1 April 2015. See: http://www.ons.gov.uk/businessindustryandtrade/constructionindustry/articles/constructionoutputpriceindicesopis/interimsolutionquarter4octobertodecember2015 Presents quarterly price and cost indices are a basic tool of the trade to anyone involved in estimating, cost checking and fee negotiation on public sector construction works including roads. Source agency: Business, Innovation and Skills Designation: National Statistics Language: English Alternative title: Construction Price and Cost Indices

Success.ai’s Construction Data for Building Materials & Construction Industry Leaders in Europe provides a reliable dataset tailored for businesses seeking to connect with leaders in the European construction and building materials sectors. Covering contractors, suppliers, architects, and project managers, this dataset offers verified profiles, firmographic insights, and decision-maker contacts.

With access to over 700 million verified global profiles and data from 70 million businesses, Success.ai ensures that your outreach, market analysis, and strategic partnerships are powered by accurate, continuously updated, and AI-validated information. Backed by our Best Price Guarantee, this solution empowers you to engage effectively with the construction industry across Europe.

Why Choose Success.ai’s Construction Data?

1. Verified Contact Data for Industry Leaders

   • Access verified work emails, phone numbers, and LinkedIn profiles of construction executives, project managers, and building material suppliers.
   • AI-driven validation ensures 99% accuracy, optimizing outreach and minimizing inefficiencies in communication.

2. Comprehensive Coverage Across Europe’s Construction Sector

   • Includes profiles from major construction hubs such as Germany, France, the UK, Italy, and Spain, covering a diverse range of projects and organizations.
   • Gain insights into regional construction trends, material sourcing strategies, and large-scale project developments.

3. Continuously Updated Datasets

   • Real-time updates reflect changes in leadership, market expansions, material innovations, and project announcements.
   • Stay ahead of market trends to align your strategies with evolving industry needs.

4. Ethical and Compliant

   • Adheres to GDPR, CCPA, and other global privacy regulations, ensuring responsible use of data and compliance with legal standards.

Data Highlights:

• 700M+ Verified Global Profiles: Engage with decision-makers, contractors, architects, and engineers in Europe’s construction sector.
• 70M Business Profiles: Access firmographic data, including company sizes, revenue ranges, and geographic locations.
• Decision-Maker Contacts: Connect directly with CEOs, procurement officers, and project leads driving construction projects and material procurement.
• Industry Insights: Gain visibility into supply chain networks, sustainable building initiatives, and innovative construction techniques.

Key Features of the Dataset:

1. Leadership Profiles in Construction

   • Identify and connect with leaders responsible for major construction projects, material sourcing, and architectural planning.
   • Target professionals making decisions on vendor selection, project timelines, and compliance.

2. Advanced Filters for Precision Campaigns

   • Filter companies by industry segment (commercial construction, residential, infrastructure), geographic location, or revenue size.
   • Tailor campaigns to align with regional construction challenges, such as sustainability, cost management, or urbanization.

3. Firmographic Insights and Project Data

   • Access data on company structures, project scopes, and market positioning to refine your targeting strategy.
   • Use these insights to identify high-value prospects and uncover new business opportunities.

4. AI-Driven Enrichment

   • Profiles enriched with actionable data enable personalized messaging, highlight unique value propositions, and improve engagement outcomes with construction stakeholders.

Strategic Use Cases:

1. Sales and Vendor Development

   • Offer construction materials, tools, or technology solutions to procurement teams and project managers in the construction industry.
   • Build relationships with vendors and contractors seeking innovative solutions to streamline operations and reduce costs.

2. Market Research and Competitive Analysis

   • Analyze trends in material usage, construction technologies, and sustainable practices to guide product development and marketing strategies.
   • Benchmark against competitors to identify market gaps, emerging needs, and high-growth opportunities.

3. Partnership Development and Supply Chain Optimization

   • Engage with companies seeking partnerships for large-scale projects, material sourcing, or technology integration.
   • Foster alliances that drive efficiency, quality, and innovation in construction projects.

4. Recruitment and Workforce Solutions

   • Target HR professionals and hiring managers recruiting skilled workers, architects, or engineers for ongoing and upcoming projects.
   • Provide staffing services, training platforms, or workforce optimization tools tailored to the construction sector.

Why Choose Success.ai?

1. Best Price Guarantee
   • Access premium-quality construction data at competitive prices, ensuring strong ROI for your marketing, sales, and bu...

BCIS forecast data showing 15% construction cost increases over five years, broken down by labour costs (16% increase), materials (13% increase), Building Safety Act compliance costs, and programme extension impacts on SME residential developers

In 2024, London had the highest construction costs for manufacturing facilities and warehouses among the cities of the United Kingdom included in this list. Building an advanced industrial plant in Manchester cost ***** British pounds per square meter. The figures in Leeds, Birmingham, Glasgow, and Manchester were somewhat similar. Certain areas of London, such as Park Royal, Canning Town, and Acton, had some of the highest rent of new small warehouse units in the UK in 2022. What factors determine construction costs? The cost of labor in construction in the UK amounted to nearly ********** of the overall income in that sector. Apart from the salaries of employees and workers, the price of land and machinery are also quite important. Another element that can be subject to a lot of change is the price of building materials, with the price of concrete re-inforcing bars in the UK growing by nearly ** percent in 2022. However, construction projects also face other costs, such as fees and other administrative costs. Industrial land prices Some components that affect the final cost of constructing warehouses and manufacturing facilities can vary a lot within the same country. For example, salaries tend to be higher in large cities. Along the same lines, the price of industrial land in North London was well over *** times higher than in Edinburgh in 2022. However, these disparities are not as pronounced in every country. Although certain areas of Warsaw had very high prices, industrial and warehouse land prices in other Polish cities such as Poznan, Wroclaw, or Krakow were higher than in the zone III of Warsaw.

Economic uncertainty and inflationary pressures have spurred a degree of instability in the UK economy in recent years. This has made private investors reluctant to dedicate significant spending towards capital ventures, weighing on lead generation in commercial building construction markets. High construction costs and rising interest rates have created further apprehension among property developers to engage in new ventures, though long-term government capital procurement frameworks have provided some resilience to wavering private investment. Aided by the release of pent-up demand and a stronger-than-anticipated initial economic recovery from the pandemic, the industry recorded a strong rebound in new orders in 2021-22, particularly in private commercial and private industrial markets. However, capacity constraints and the impact of reduced new work volumes secured during the height of the pandemic limited output growth. Growth in new order volumes slowed in 2022-23, as economic uncertainty compounded and rising tender prices reduced the propensity of investors to commit to commercial real estate ventures. High borrowing costs continued to weigh on investor sentiment in 2023-24, with interest rates hitting 5.25% in August 2023, according to the Bank of England. However, a steady stream of work on projects procured through capital procurement frameworks, including Procure23 and the School Rebuilding Programme, has bolstered revenue growth for publicly funded buildings. Overall, revenue is expected to climb at a compound annual rate of 3.6% over the five years through 2025-26 to £21.6 billion, despite a forecast dip of 1.4% in 2025-26 as inflationary pressure hits demand. Revenue is slated to swell at a compound annual rate of 1.1% over the five years through 2030-31 to reach £22.9 billion. The effects of the UK's economic slowdown will continue to bite in the near term as weak order books limit remuneration. Still, commitments made by the government as part of capital procurement frameworks will continue to support demand for commercial building contractors in the coming years, while private-sector order books should improve as borrowing costs come down. Although input price inflation is set to continue to ease in the medium term, material costs are likely to remain elevated and a construction worker shortage will pressure profit. According to the Building Cost Information Service, material costs are anticipated to grow by 15% in the five years through Q3 2030.

Residential building contractors are contingent on the propensity of property developers to invest in new ventures; movements in property prices; government schemes intended to boost the housing supply; and underlying sentiment in the housing market. Industry contractors have endured turbulent operating conditions over the past five years, leading to volatile shifts in revenue and profitability. Revenue is forecast to grow at a compound annual rate of 5.4% over the five years through 2025-26, reaching £100.5 billion. The pandemic caused a significant drop in output in 2020-21, as restrictions placed on on-site activity and fewer enquiries for new housing units reduced revenue opportunities. Aided by government support for the housing market and the release of pent-up demand, 2021-22 was characterised by a strong rebound in activity, though materials and labour shortages maintained constraints on output. Mounting supply chain disruption and heightened economic uncertainty maintained pressure on output in the following year, though revenue growth was maintained by growth in average selling prices. Interest rate hikes and inflationary pressures led to a more subdued housing market in 2022-23, holding back the number of housing starts and completions during the year. This was followed by a slump in new residential building construction in the following year, as high borrowing costs and uncertain market conditions caused developers to scale back investment plans. The new Labour government has put forth ambitious housing targets, leading to planning reforms, increased funding for SME housebuilders and a particular focus on affordable housing to speed up housing delivery. Even though economic conditions continue to affect investor sentiment, supportive supply-side policies are anticipated to boost revenue growth by 0.5% in 2025-26. This growth is expected to also be fuelled by an uptick in new orders for residential building construction, coupled with a rise in average selling prices. Revenue is slated to climb at a compound annual rate of 2.3% to reach £112.5 billion over the five years through 2030-31. Housebuilding activity is set to grow in the medium-term, aided by the release of pent-up demand. Nonetheless, significant uncertainty remains, with mortgage rates likely to settle well-above pre-pandemic levels and supply chains remaining fragile. The new government’s pledge to deliver 1.5 million houses during the first five years of parliament will boost demand for industry contractors, though the full impact of this on growth prospects is dependent on the nature and extent of accompanying funding plans.

Forecast: Labour Cost Per Employee FTE of Construction of Bridges and Tunnels in the UK 2023 - 2027 Discover more data with ReportLinker!