'Structural metal products for the domestic market had the steepest prices of the components that go into the index. “Steel work and metal joinery are the largest weighted inputs into private industrial and the second-largest weighted into bridge construction projects,' the ONS report adds. The ONS report also points out that global price trends of commodities such as iron and copper are pushing up construction input prices, with iron ore prices soaring by 97% in July 2021 compared with the previous year. Rising construction output – the building and civil engineering work done over a certain period – is pushing demand for construction inputs – the resources, including raw materials, used in the production of the product leading to the output – which is increasing the cost of inputs too.ĭata from the Department for Business, Energy and Industrial Strategy during August 2021 showed that the average cost of materials across the construction sector was 23.5% higher than in August 2020. Labour shortages are expected to evolve as the significant driver for overall construction cost increases next year and the construction sector would need to compete for. 'It is expected to grow by a further 1%, or £600, by the end of 2022.'īCIS lead consultant Joe Martin added: “The pressure on materials prices and availability is expected to continue at least until the end of 2022. “The cost of materials in constructing a three-bedroom, semi-detached house has increased by 14%, or approximately £7,300, between January and September 2021,' said James Fiske, a director at BCIS.

Global construction cost index by city