Planning a new building is always very exciting – whether it’s your own home or a big commercial project. However, it is vital to figure out your expected costs so you can budget effectively. Construction costs in the UK are among the highest in the world (and London is the most expensive city to build in). So, make sure you set aside enough time to work out those estimates to avoid nasty surprises.
In this blog, you will learn about building costs per square metre in the UK. Please note that prices can vary dramatically depending on materials used, location and complexity of the project. Given today’s high rate of inflation, these estimates may quickly go out of date (we are writing in October 2022). You should always speak with a licensed quantity surveyor to get the most accurate estimate for your specific project
One of the major factors influencing the cost of your project is your project management. Don’t let poor project management cost you money – click the link below to read our eBook and find out how digital technology can transform the way you manage projects.
The Future of Construction Project Management
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Practically all factors that affect UK construction costs are currently on the rise – from materials to land to labour. Recent data from RICS shows that material prices have reached a 40-year high, with timber and steel being particularly expensive this year. Meanwhile fees for construction workers are climbing too. A Checkatrade survey recently found that some building professionals are charging almost 90% more in 2022 than they were in 2021.
Why are construction costs in the UK rising so fast?
To estimate building costs in the UK, we’ve used data from CostModelling.com, a cost estimating software company who provide extensive data of prices across the country.
The standard way of measuring building costs in the UK is now mainly based on building costs per m 2 (although some contractors still calculate the cost of building per square foot). So, if you want to calculate construction costs in the UK, you first need to know the size of the building you wish to put up.
It’s also important to consider the scale of a project. A one-off project will tend to cost more, while a large housing estate or office park will cost less per square metre. This is thanks to economies of scale.
CostModelling.com’s data summarises the core costs (materials, labour, building type and region). That said, there are several other costs that aren’t included, such as:
Let’s first look at average house build cost in the UK, before looking at commercial property costs.
And before you do that, take a look at what commercial properties of the future might look like – and what this could mean for your costs.
The Office of the Future
Download the full research paper here.