{
  "query": "UK construction cost inflation 2024-2025 steel infrastructure projects",
  "raw_results": [
    {
      "url": "https://www.tmhcc.com/en/news-and-articles/thought-leadership/uk-construction-sector-report-december-2025",
      "title": "UK Construction Sector Report - Tokio Marine HCC",
      "content": "Source: ONS\n\nOutput price inflation in the British construction sector had dropped to 1.6% y/y in March 2024, the lowest reading since late 2020. This was then followed by a short-lived increase (rising to above 3% y/y in October 2024-March 2025) before moderating again in Q2 2025. Latest available data for September 2025 shows construction sector output price inflation standing at 2.7% y/y, thereby exceeding input price inflation. Positively, this is supporting profit margins following several years of material price inflation severely outstripping output price inflation.\n\n##### Output [...] Worryingly, while material price inflation has moderated in recent years, construction companies’ operating costs are still under pressure because of rising wages (see Labour Market chapter below). In addition, in absolute terms, the early 2025 “all work” construction price index reading of 151.8 points compares very unfavourably with the 2020-value of 110.6 points, highlighting a persistent rise in building costs since Covid2 .\n\nUK Construction Materials Price Indices (y/y change)\n\nSource: ONS [...] Equally problematically for policy makers in the UK, lacklustre growth is once more coupled with elevated inflationary pressures11. Consumer prices including owner occupiers’ housing costs (CPIH) have been rising for several months now, increasing from 2.6% in September 2024 to 4.1% one year later. The current reading is the highest since October 2023 and inflation is more than twice as high as the Bank of England’s (BoE) 2% target. With inflation forecasted to remain above target until mid-2027 (albeit gradually decreasing over time), the BoE’s room for further interest rate cuts remains limited, despite the adverse growth backdrop12. Markets are expecting a single rate cut (by 25 basis points) in 2026 which will mean that the period of monetary loosening is effectively coming to an end.",
      "score": 0.84183896,
      "raw_content": null
    },
    {
      "url": "https://publications.turnerandtownsend.com/global-construction-market-intelligence-2025/global-construction-cost-trends",
      "title": "Global construction cost trends - GCMI 2025",
      "content": "In developed regions, construction inflation rates continued normalising in 2024, as the effects of restrictive interest rates and softening demand filtered through the economy. The UK recorded an average increase of 3.0 percent, while Europe experienced average inflation of 2.9 percent. North America reported 3.6 percent, whereas Australia and New Zealand experienced a higher rate of 4.7 percent for the year, largely driven by a newly negotiated enterprise agreement introducing a payrise for construction labour, though this still marks an improvement compared to previous years. These figures indicate a return to escalation rates more aligned with those seen prior to the pandemic, suggesting greater stability in material pricing and project-related costs. [...] In the UK and North America, construction cost inflation is anticipated to remain steady at 3.5 percent and 3.8 percent, respectively. However, at the time of the survey, uncertainties persist, particularly in the US, where policy changes could have significant implications for construction. Factors such as fluctuations in plant and material costs and deportation policies affecting labour availability are expected to be key considerations influencing future trends.\n\nGiven the potential for rapid market shifts, ongoing monitoring of developments is advised to ensure timely adaptation to changing conditions.\n\n#### GLOBAL\n\n## Construction input costs and global supply trends\n\n### Labour [...] Global construction cost inflation rose by 4.15 percent in 2024, with significant variations between regions. While inflationary pressures moderated in developed economies, several developing markets experienced much stronger escalation due to economic instability, currency fluctuations and material cost volatility.",
      "score": 0.8066246,
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    },
    {
      "url": "https://media.arcadis.com/-/media/project/arcadiscom/com/perspectives/europe/united-kingdom/2025/uk-autumn-market-view-2025/uk-market-view-autumn-2025.pdf?rev=52862a2eac7943bead34db7004bc5f0b",
      "title": "[PDF] Arcadis UK Construction Market View Autumn 2025",
      "content": "14 | Stuck in the cycle Arcadis UK Construction Market View Autumn 2025 Introduction Forecast Sector Summaries Spotlight Regional Building Construction TPI London Building Construction TPI National Civil Infrastructure TPI National Network Infrastructure TPI 2024 1-2% (1-2%) 1-2% (1-2%) 3-6% (3-6%) 3-6% (3-6%) 2025 2-4% (2-4%) 2-4% (2-4%) 3-5% (3-5%) 4-6% (4-6%) 2026 3-5% (3-5%) 3-5% (3-5%) 3-5% (3-5%) 4-7% (4-7%) 2027 4-5% (4-5%) 4-5% (4-5%) 3-5% (3-5%) 4-7% (4-7%) 2028 5-6% (5-6%) 5-6% (5-6%) 5-6% (5-6%) 5-8% (5-8%) 2029 5-6% (5-6%) 5-6% (5-6%) 5-6% (5-6%) 5-8% (5-8%) Total 20-27% 20-27% 23-33% 27-42% Inflationary drivers Deflationary drivers Recovery of NICs from April 2025 Procurement and approval delays High levels of workload in network infrastructure Heightened subcontractor [...] 11 | Stuck in the cycle Arcadis UK Construction Market View Autumn 2025 Introduction Forecast Sector Summaries Spotlight Materials Consumer prices measured by CPI increased by 3.8% in July 2025. Inflation data focused on construction materials has been suspended since January 2025 due to a historical data quality error. Latest inflation data points to particularly strong inflation in services, increasing by 5.2%. Inflation for goods, a proxy for materials, increased by 2.7%—up from 1% in January 2025, suggesting a modest increase in pricing pressure. Equivalent materials inflation data from Ireland points to an increase in costs of products associated with house building rather than commercial or civil engineering. In the past quarter, there has been a divergence in the prices of metals [...] • We do not expect material price inflation to be a significant inflationary driver in the next 12-18 months.\n• For Network Infrastructure, we anticipate that scarcity costs will become a significant consideration from 2026 onwards.",
      "score": 0.79099923,
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    },
    {
      "url": "https://buonconstruction.com/will-uk-construction-costs-fall/",
      "title": "Will UK construction costs fall in 2025? Complete Guide",
      "content": "### 4. Renovation and Refurbishment\n\nIn particular, older properties will need more work and, therefore, will be more expensive. In turn, homeowners may find themselves unable to delay or scale back their renovation plans.\n\n### 5. Infrastructure Projects\n\nTimelines and budgets will be affected by the prices of steel, cement and labour, especially in projects that are already operating under financial pressure or have tight deadlines.\n\n## Conclusion\n\nConstruction costs in the UK are projected to rise by up to 15% over the next five years, which means material prices, labour shortages, and economic factors. There’s no need to delay your construction projects to get better rates in future. Start now and save yourself time and money, as well as avoid the inevitable price hikes. [...] |  |  |  |\n --- \n| Material Type | Details | Price Range |\n| Concrete | – | Prices vary based on project requirements |\n| Steel | Reinforcing steel bars | £650-£850 per tonne |\n| Structural steel | Around £1,100 per tonne |\n| Bricks | Standard clay bricks | £0.50-£1 per brick |\n| Facing bricks (higher quality) | £1.20-£1.80 per brick |\n| Timber | Softwood | £300-£400 per cubic metre |\n| Hardwood | £500-£700 per cubic metre |\n| Insulation Materials | Mineral wool (100 mm thick) | £4-£6 per square metre |\n| Hardwood | £500-£700 per cubic metre |\n| Roofing Materials | Concrete roof tiles | £0.70-£1.50 per tile |\n| Slate roof tiles | £2-£3 per tile |\n| Cement | Bagged cement (25 kg) | £5-£7 per bag |\n| Sand | Building sand | £30-£40 per tonne |\n| Sharp sand | £35-£50 per tonne | [...] ### 1. Why are UK construction costs so high in 2024?\n\nConstruction costs in 2024 remain elevated due to a combination of factors including rising material costs, labour shortages, inflationary pressures, and increased demand for infrastructure projects. Supply chain disruptions and fluctuating energy prices also contribute to higher expenses in the construction industry.\n\n### 2. What factors could influence a drop in UK construction costs in 2026?",
      "score": 0.78413767,
      "raw_content": null
    },
    {
      "url": "https://coremetsteel.com/news-insights/uk-steel-price-forecast-2025-2026/",
      "title": "UK Steel Price Forecast 2025–2026 | Market Outlook",
      "content": "##### Steel Market Snapshot (2024 Recap)\n\nIn 2024, UK steel prices saw moderate increases as energy costs settled and imports from Turkey and Asia increased competitiveness. Overall annual movement:\n\n Merchant Bars: +4% to +7%\n Coil Sheets: +5% to +8%\n Structural Steel: Stable to +3%\n Rebar: +2% to +5%\n\nThis forms the baseline for 2025–2026 expectations.\n\n##### Price Outlook for 2025\n\nUK steel prices are expected to rise gradually due to stronger construction demand, global scrap trends, and steady energy costs.\n\n Merchant Bars: +3% to +6%\n Coil Sheets: +2% to +7%\n Structural Steel: Stable to +4%\n Rebar: +2% to +5%\n\nImport pressure — especially from Turkey and India — will help prevent sharp increases, but procurement teams should still expect gradual quarterly rises. [...] ##### Key Factors Shaping Prices\n\n Energy Costs: Still a major influence on mill production costs.\n Scrap Steel Prices: Particularly impactful for merchant bars and rebar.\n Import Competition: Turkish and Asian mills continue to offer competitive pricing.\n UK Construction Demand: Infrastructure and housing projects will support steady consumption.\n Logistics: Reduced freight rates in 2025–2026 improve import affordability.\n\n##### Practical Advice for Steel Buyers",
      "score": 0.68140936,
      "raw_content": null
    }
  ],
  "formatted": "Source: UK Construction Sector Report - Tokio Marine HCC\nURL: https://www.tmhcc.com/en/news-and-articles/thought-leadership/uk-construction-sector-report-december-2025\nSource: ONS Output price inflation in the British construction sector had dropped to 1.6% y/y in March 2024, the lowest reading since late 2020. This was then followed by a short-lived increase (rising to above 3% y/y in October 2024-March 2025) before moderating again in Q2 2025. Latest available data for September 2025 shows construction sector output price inflation standing at 2.7% y/y, thereby exceeding input price inflation. Positively, this is supporting profit margins following several years of material price inflation severely outstripping output price inflation. ##### Output [...] Worryingly, while material price inflation has moderated in recent years, construction companies’ operating costs are still under pressure because of rising wages (see Labour Market chapter below). In addition, in absolute terms, the early 2025 “all work” construction price index reading of 151.8 points compares very unfavourably with the 2020-value of 110.6 points, highlighting a persistent rise in building costs since Covid2 . UK Construction Materials Price Indices (y/y change) Source: ONS [...] Equally problematically for policy makers in the UK, lacklustre growth is once more coupled with elevated inflationary pressures11. Consumer prices including owner occupiers’ housing costs (CPIH) have been rising for several months now, increasing from 2.6% in September 2024 to 4.1% one year later. The current reading is the highest since October 2023 and inflation is more than twice as high as the Bank of England’s (BoE) 2% target. With inflation forecasted to remain above target until mid-2027 (albeit gradually decreasing over time), the BoE’s room for further interest rate cuts remains limited, despite the adverse growth backdrop12. Markets are expecting a single rate cut (by 25 basis p\n\n---\n\nSource: Global construction cost trends - GCMI 2025\nURL: https://publications.turnerandtownsend.com/global-construction-market-intelligence-2025/global-construction-cost-trends\nIn developed regions, construction inflation rates continued normalising in 2024, as the effects of restrictive interest rates and softening demand filtered through the economy. The UK recorded an average increase of 3.0 percent, while Europe experienced average inflation of 2.9 percent. North America reported 3.6 percent, whereas Australia and New Zealand experienced a higher rate of 4.7 percent for the year, largely driven by a newly negotiated enterprise agreement introducing a payrise for construction labour, though this still marks an improvement compared to previous years. These figures indicate a return to escalation rates more aligned with those seen prior to the pandemic, suggesting greater stability in material pricing and project-related costs. [...] In the UK and North America, construction cost inflation is anticipated to remain steady at 3.5 percent and 3.8 percent, respectively. However, at the time of the survey, uncertainties persist, particularly in the US, where policy changes could have significant implications for construction. Factors such as fluctuations in plant and material costs and deportation policies affecting labour availability are expected to be key considerations influencing future trends. Given the potential for rapid market shifts, ongoing monitoring of developments is advised to ensure timely adaptation to changing conditions. #### GLOBAL ## Construction input costs and global supply trends ### Labour [...] Global construction cost inflation rose by 4.15 percent in 2024, with significant variations between regions. While inflationary pressures moderated in developed economies, several developing markets experienced much stronger escalation due to economic instability, currency fluctuations and material cost volatility.\n\n---\n\nSource: [PDF] Arcadis UK Construction Market View Autumn 2025\nURL: https://media.arcadis.com/-/media/project/arcadiscom/com/perspectives/europe/united-kingdom/2025/uk-autumn-market-view-2025/uk-market-view-autumn-2025.pdf?rev=52862a2eac7943bead34db7004bc5f0b\n14 | Stuck in the cycle Arcadis UK Construction Market View Autumn 2025 Introduction Forecast Sector Summaries Spotlight Regional Building Construction TPI London Building Construction TPI National Civil Infrastructure TPI National Network Infrastructure TPI 2024 1-2% (1-2%) 1-2% (1-2%) 3-6% (3-6%) 3-6% (3-6%) 2025 2-4% (2-4%) 2-4% (2-4%) 3-5% (3-5%) 4-6% (4-6%) 2026 3-5% (3-5%) 3-5% (3-5%) 3-5% (3-5%) 4-7% (4-7%) 2027 4-5% (4-5%) 4-5% (4-5%) 3-5% (3-5%) 4-7% (4-7%) 2028 5-6% (5-6%) 5-6% (5-6%) 5-6% (5-6%) 5-8% (5-8%) 2029 5-6% (5-6%) 5-6% (5-6%) 5-6% (5-6%) 5-8% (5-8%) Total 20-27% 20-27% 23-33% 27-42% Inflationary drivers Deflationary drivers Recovery of NICs from April 2025 Procurement and approval delays High levels of workload in network infrastructure Heightened subcontractor [...] 11 | Stuck in the cycle Arcadis UK Construction Market View Autumn 2025 Introduction Forecast Sector Summaries Spotlight Materials Consumer prices measured by CPI increased by 3.8% in July 2025. Inflation data focused on construction materials has been suspended since January 2025 due to a historical data quality error. Latest inflation data points to particularly strong inflation in services, increasing by 5.2%. Inflation for goods, a proxy for materials, increased by 2.7%—up from 1% in January 2025, suggesting a modest increase in pricing pressure. Equivalent materials inflation data from Ireland points to an increase in costs of products associated with house building rather than commercial or civil engineering. In the past quarter, there has been a divergence in the prices of metals [...] • We do not expect material price inflation to be a significant inflationary driver in the next 12-18 months. • For Network Infrastructure, we anticipate that scarcity costs will become a significa\n\n---\n\nSource: Will UK construction costs fall in 2025? Complete Guide\nURL: https://buonconstruction.com/will-uk-construction-costs-fall/\n### 4. Renovation and Refurbishment In particular, older properties will need more work and, therefore, will be more expensive. In turn, homeowners may find themselves unable to delay or scale back their renovation plans. ### 5. Infrastructure Projects Timelines and budgets will be affected by the prices of steel, cement and labour, especially in projects that are already operating under financial pressure or have tight deadlines. ## Conclusion Construction costs in the UK are projected to rise by up to 15% over the next five years, which means material prices, labour shortages, and economic factors. There’s no need to delay your construction projects to get better rates in future. Start now and save yourself time and money, as well as avoid the inevitable price hikes. [...] | | | | --- | Material Type | Details | Price Range | | Concrete | – | Prices vary based on project requirements | | Steel | Reinforcing steel bars | £650-£850 per tonne | | Structural steel | Around £1,100 per tonne | | Bricks | Standard clay bricks | £0.50-£1 per brick | | Facing bricks (higher quality) | £1.20-£1.80 per brick | | Timber | Softwood | £300-£400 per cubic metre | | Hardwood | £500-£700 per cubic metre | | Insulation Materials | Mineral wool (100 mm thick) | £4-£6 per square metre | | Hardwood | £500-£700 per cubic metre | | Roofing Materials | Concrete roof tiles | £0.70-£1.50 per tile | | Slate roof tiles | £2-£3 per tile | | Cement | Bagged cement (25 kg) | £5-£7 per bag | | Sand | Building sand | £30-£40 per tonne | | Sharp sand | £35-£50 per tonne | [...] ### 1. Why are UK construction costs so high in 2024? Construction costs in 2024 remain elevated due to a combination of factors including rising material costs, labour shortages, inflationary pressures, and increased demand fo\n\n---\n\nSource: UK Steel Price Forecast 2025–2026 | Market Outlook\nURL: https://coremetsteel.com/news-insights/uk-steel-price-forecast-2025-2026/\n##### Steel Market Snapshot (2024 Recap) In 2024, UK steel prices saw moderate increases as energy costs settled and imports from Turkey and Asia increased competitiveness. Overall annual movement: Merchant Bars: +4% to +7% Coil Sheets: +5% to +8% Structural Steel: Stable to +3% Rebar: +2% to +5% This forms the baseline for 2025–2026 expectations. ##### Price Outlook for 2025 UK steel prices are expected to rise gradually due to stronger construction demand, global scrap trends, and steady energy costs. Merchant Bars: +3% to +6% Coil Sheets: +2% to +7% Structural Steel: Stable to +4% Rebar: +2% to +5% Import pressure — especially from Turkey and India — will help prevent sharp increases, but procurement teams should still expect gradual quarterly rises. [...] ##### Key Factors Shaping Prices Energy Costs: Still a major influence on mill production costs. Scrap Steel Prices: Particularly impactful for merchant bars and rebar. Import Competition: Turkish and Asian mills continue to offer competitive pricing. UK Construction Demand: Infrastructure and housing projects will support steady consumption. Logistics: Reduced freight rates in 2025–2026 improve import affordability. ##### Practical Advice for Steel Buyers"
}