Heather Campbell
Is now a good time to break ground in the UK?
In this article we cover:
- What way material prices are heading
- Where labour prices are heading
- What could drive up costs
- What could drive costs down
Q: What way are material and labour prices trending? Hoping to break ground in the next few weeks.
Unfortunately, while things may feel more settled than they did a year ago, there’s still a lot to watch out for if you’re about to break ground.
Let’s start with the good news: material prices have largely stabilised after a few years of sharp increases. However, don’t let that fool you into thinking prices are going to drop. According to the latest Building Cost Information Service (BCIS) forecasts, material costs are still expected to rise by around 15 per cent over the next few years — so while we’re not seeing big spikes right now, that slow upward creep is still very much a factor.
[adrotate banner="58"]Builders are also reporting that they’re still paying over the odds for some products, with merchant prices slow to reflect reductions in wholesale costs — so it’s worth shopping around and locking in supplier deals early if you can.
Labour, however, is the bigger pressure point. The UK is facing a significant skills shortage, worsened by an ageing workforce and less inward migration. Nearly half of builders surveyed by the Federation of Master Builders (FMB) reported having to delay or cancel jobs due to lack of skilled workers.
Wages are on the rise, too — National Insurance increases and higher minimum wage levels are pushing overall labour costs up. BCIS expects labour costs to rise by 18 per cent by 2030, and we’re already seeing subcontractor rates rising sharply, with inflation at a 21-month high earlier this year.
Then there’s planning. Approvals were down 10 per cent across Great Britain last year — and while regions like Wales have seen a bump, in England things have slowed. Fewer permissions mean more competition for consultants and possibly longer lead times. If you’re still waiting on planning, this could impact your start date.
So what’s the bottom line if you’re hoping to break ground in the next few weeks?
Costs are likely to remain where they are in the short term — which is to say, high. Labour is tight, materials are steady but not cheap, and planning is slower than usual. Holding off in the hope prices will fall could well be a false economy. Instead, your best bet is to lock in prices and trades now, and consider phased work or alternative methods like timber frame to keep things moving.
