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.

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

Data on the share of small and medium enterprises (SME) in the construction sector with growth plans for the next 12 months in the United Kingdom (UK) from fourth quarter 2011 to second quarter 2020 shows that the peak of this period was in second quarter 2013, when 47 percent of construction sector SMEs stated that they planned to grow in the following 12 months.

Building materials made of steel, copper and other metals had some of the highest price growth rates in the U.S. in the first half of 2025 in comparison to the previous year. The growth rate of the cost of several construction materials was slightly lower than in late 2024. It is important to note, though, that the figures provided are Producer Price Indices, which cover production within the United States, but do not include imports or tariffs. This might matter for lumber, as Canada's wood production is normally large enough that the U.S. can import it from its neighboring country. Construction material prices in the United Kingdom Similarly to these trends in the U.S., at that time the price growth rate of construction materials in the UK were generally lower 2024 than in 2023. Nevertheless, the cost of some construction materials in the UK still rose that year, with several of those items reaching price growth rates of over **** percent. Considering that those materials make up a very big share of the costs incurred for a construction project, those developments may also have affected the average construction output price in the UK. Construction material shortages during the COVID-19 pandemic During the first years of the COVID-19 pandemic, there often were supply problems and material shortages, which created instability in the construction market. According to a survey among construction contractors, the construction materials most affected by shortages in the U.S. during most of 2021 were steel and lumber. This was also a problem on the other side of the Atlantic: The share of building construction companies experiencing shortages in Germany soared between March and June 2021, staying at high levels for over a year. Meanwhile, the shortage of material or equipment was one of the main factors limiting the building activity in France in June 2022.

Analysis of the UK construction sands market, covering consumption, production, imports, exports, and price trends from 2013-2024, with a forecast to 2035. Key data includes a market volume of 177K tons and value of $9.8M in 2024, with a projected CAGR of +4.9% in volume and +5.2% in value.

The Swedish construction industry registered growth of 6.8% in real terms in 2017, preceded by an annual average growth of 4.3% during 2014-2016. Growth during the review period (2013-2017) was driven by improvements in business confidence and consumer demand, and public and private sector investment in institutional, residential and infrastructure construction projects, leading to an increase in demand for the Swedish construction industry. Read More

Analysis of the UK's clays for construction and industrial use market, covering consumption, production, imports, and exports from 2013-2024, with a forecast to 2035. The market is projected to grow to 9.8M tons and $1.5B, driven by steady domestic demand.

United Kingdom GDP: YoY: Contrib: sa: GVA: Construction data was reported at -0.200 % in Mar 2018. This records a decrease from the previous number of 0.100 % for Dec 2017. United Kingdom GDP: YoY: Contrib: sa: GVA: Construction data is updated quarterly, averaging 0.100 % from Mar 1997 (Median) to Mar 2018, with 85 observations. The data reached an all-time high of 0.700 % in Mar 2004 and a record low of -1.000 % in Jun 2009. United Kingdom GDP: YoY: Contrib: sa: GVA: Construction data remains active status in CEIC and is reported by Office for National Statistics. The data is categorized under Global Database’s UK – Table UK.A036: ESA 2010: GVA: by Industry: Chain Linked: 2013 Prices: Contribution to Growth: Seasonally Adjusted.

Number of Businesses statistics on the Civil Engineering Project Construction industry in the UK

United Kingdom GDP: QoQ: Contrib: sa: GVA: Construction data was reported at 0.100 % in Jun 2018. This records an increase from the previous number of -0.100 % for Mar 2018. United Kingdom GDP: QoQ: Contrib: sa: GVA: Construction data is updated quarterly, averaging 0.000 % from Mar 1997 (Median) to Jun 2018, with 86 observations. The data reached an all-time high of 0.300 % in Jun 2010 and a record low of -0.400 % in Mar 2009. United Kingdom GDP: QoQ: Contrib: sa: GVA: Construction data remains active status in CEIC and is reported by Office for National Statistics. The data is categorized under Global Database’s United Kingdom – Table UK.A038: ESA 2010: GVA: by Industry: Chain Linked: 2013 Prices: Contribution to Growth: Seasonally Adjusted.

The Croatian construction industry’s forecast-period (2018-2022) outlook is better than its review-period (2013-2017) performance, with average annual growth in real terms set to accelerate from -0.2% to 2.5%. Government and private sector investment across residential, infrastructure, commercial and energy and utilities construction markets will drive forecast-period growth, as well as improving consumer and investor confidence. Read More

The South Korean construction industry registered growth of 10.1% and 7.1% in real terms in 2016 and 2017 respectively, following average annual growth of 3.1% during 2013-2015. This increase can be attributed to improvements in business confidence and consumer demand, as well as public and private sector investment in commercial, residential and infrastructure construction projects, leading to an increase in demand for the South Korean construction industry. Additionally, construction related to the 2018 Winter Olympic Games supported the industry’s overall growth during 2016-2017. Read More

Analysis of the UK natural sands market, including consumption, production, import, and export trends from 2013-2024, with a forecast to 2035. Covers market value, volume, key trade partners, and price dynamics for construction and industrial sands.

In real terms, the Algerian construction industry registered positive growth during the review period (2013–2017). Construction activity, however, experienced a slowdown in 2017, as austerity measures implemented by the government reduced public spending. Furthermore, low oil prices since mid-2014 have affected the flow of investments in construction projects. The government’s move towards bringing down the country’s budget deficit resulted in slow growth in the industry. Nevertheless, review-period growth was supported by the ongoing Five-Year Investment Plan 2015–2019, under which the government is investing DZD21.6 trillion (US$215.0 billion) to develop various infrastructure projects by 2019. Read More

The Greek construction industry is projected to recover over the forecast period (2018-2022), with compound annual growth rate (CAGR) in real terms set to accelerate from -2.4% in the review period (2013-2017) to reach 4.7%. Investment in commercial, residential and industrial buildings is expected to drive the forecast-period growth of the industry. Moreover, government and private sector investment to clear the country’s infrastructure backlog, which grew significantly due to multi-year deep recession, is expected to provide some support to the industry growth over the forecast period. Read More

The number of housing starts and completions in London decreased sharply in the fiscal year 2024/25. That came after a period of steadily increasing housing starts between 2019/20 and 2022/23, with ****** units started that latter year. Meanwhile, the number of new residential property starts in London amounted to ***** dwellings in 2024/25. However, the overall housing starts in the United Kingdom were forecasted to grow significantly in the coming years. How do residential construction costs compare across regions in the United Kingdom? Construction costs have been an important challenge for contractors and homebuilders in the United Kingdom, having an effect on their profit, but also on the final price of housing. Residential construction costs in the UK varied significantly by city and building type, with apartment high-rises generally being more expensive to construct than medium-standard townhouses. Overall, construction costs reflect a trend in which urban centers like London and Manchester have the highest average residential building construction costs in the UK. What is the price of a newly built home in the United Kingdom? Over the past decade, house prices have generally increased, reflecting a steady upward trend in the housing market. By the end of 2023, the average price of a newly built house in the UK amounted to nearly ******* British pounds. However, this represented a slight dip compared to the previous quarter, which recorded the highest average house prices since 2013. These trends suggest that the rise in housing costs will continue in the long-term, even if prices fluctuate slightly in certain quarters.

The global oil and gas market has undergone profound changes during the past year, in the face of the rapid decline in global crude oil prices. By February 2016, prices for Brent crude dropped to US$32 a barrel, having been on a downward trend since late 2013 when they were around US$110 a barrel. This fall greatly disrupted investment plans in new construction projects, both at country and company level.
Mature oil-producing countries, such as those in the Gulf Co-operation Council (GCC), have reduced their investment in oil and gas construction projects as continually high production keeps oil prices at a low level. The recent agreement between Saudi Arabia and Russia to peg back production to January levels is unlikely to have an inflationary effect on prices until other producers, such as Iran, become involved. Iran is again supplying oil and gas to the market after long-term sanctions were lifted, so a reduction in supply does not align with its economic strategy.
In the past few years, countries outside the Middle East have recorded the fastest growth in production and investment in oil and gas projects. Canada, with its exploitation of its huge oil sands resources to produce oil, and the US, with growth in its oil and gas industry prior to the oil price collapse, have asserted themselves, along with Russia, as leading suppliers in the industry. Read More

Private companies were responsible for most of the new homes built in the United Kingdom (UK), amounting to ******* units in 2024. Housing completions in the UK decreased for three years in a row between 2007 and 2010. This was followed by several years of fluctuation and a gradual increase from 2013 to 2019. The number of homes completed in England remained relatively stable in 2022 and 2023, after reaching a low point in the second quarter of 2020 due to the restrictions implemented to prevent the spread of COVID-19. Construction starts and completions Comparing the number of starts and completions in London side-by-side shows that whenever there is a significant growth or fall in the number of projects started, that peak or valley tends to be reflected in the number of buildings completed a couple of years later. Nevertheless, disruptions, delays, and other obstacles may affect that correlation. Still, observing how many home construction projects started in the UK can provide some insight into the level of activity that construction companies may have in the near future. Given that the number of housing starts is forecast to fall in 2024, there might be slightly less work to be carried out the following year. Nevertheless, housing starts are expected to pick up again by 2025 and 2026. Housing associations in the UK Housing associations are not-for-profit organizations created to develop and rent homes for a lower price than in the private market. They have acquired certain relevance in the UK, although this type of organization also exists in other countries. On several occasions during the past decade, over a fifth of housing starts in London were developed by housing associations. Meanwhile, the number of new homes completed in Scotland by housing associations has increased a lot throughout the years, with several thousand units constructed every year during the past decades.

World Class Land Pte Ltd (WCL), a subsidiary of Aspial Group, is undertaking the construction of condominium project in Singapore.The project involves the construction of a residential complex comprising seven five-story blocks on 15,125m2 site and a gross floor area of 21,176m2.It includes the construction of 210 residential units consisting of 199 apartments, 11 strata houses, retail and administrative units, parking area and related infrastructure facilities, and the installation of safety and security systems.On April 15, 2013, Urban Redevelopment Authority (URA) launched the tender for the proposed site. In June 2013, WCL has awarded the US$124 million contract for 99 years leasehold. Authentic Builder Pte Ltd was appointed as a contractor and P&T Architects appointed for architectural works.Construction is underway and expected to be completed by 2018. Read More

The Bristol Port Co. (Bristol Port) is planning to construct a deep-sea container terminal project in the UK.The project involves the construction of a deep-sea container terminal with a capacity of 1.5 million TEU. The project includes the construction of four berths capable of receiving 16m draught vessels at all states of the tide, 1,200m of operational quay wall providing berths for deep-sea and feeder container vessels, reclamation of 55ha of intertidal and subtidal area for container handling and storage area and HGV holding and loading area, storage facility, a rail terminal and road system linking new handling and storage area to existing port infrastructure, the installation of container handling equipment, navigation aids and lighting, and provision of offices, workshops and warehouses and links to the port's existing rail and road connections.HR Wallingford and Ravensrodd Consultants Ltd have been appointed as study consultants and Halcrow as a marine consultant for the project.In April 2007, Royal Haskoning was appointed to carry out flood risk assessment (FRA) for the proposed reconfiguration.Bristol Port submitted its harbor revision order application and environmental statement in respect of the planned deep-sea container terminal in the third quarter of 2008. In March 2010, the detailed sampling program designed by consultants Royal Haskoning and Bristol Port’s Harbour Revision Order was granted.In October 2010, Construct Bristol Terminal (CBT) joint venture led by international civil engineering contractors Costain and BAM Nuttall together with major dredging specialists, Westminster Dredging Co. and Van Oord was appointed to undertake investigation works. CBT has been engaged under an early-contractor-involvement (ECI) professional services contract and the site investigation work will be used to reinforce existing records and develop the design, alongside leading marine consultants Halcrow.In December 2010, the investigation works started and was completed in 2011.In October 2013, the project was put on hold for several years due to unfavorable market conditions.In April 2016, the project has been delayed again and First Corporate Shipping, who owns Avonmouth Dock has applied for a ten-year extension to its permission to build the container terminal.As of August 2017, Bristol Port is looking for potential investors.As of September 2017, the project secured approvals from the government.Planning activities are underway. Construction is expected to take three years for completion from the construction commencement. Read More