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Economy

Economy

UK Construction Cost Per Square Foot 2026: London at £4,100/m²

UK construction cost per square foot in 2026: £/m² and $/SF benchmarks for London and the regions, RICS BCIS data, 20% VAT, and what drives the London premium.

Lisa Chen · 2026-08-05

Key Metrics

PPI materials

267.4

index
+6.2%YoY Mar 2026

Producer Price Index for construction materials. Measures input cost inflation for contractors.

Lumber

$487/MBF

+12%Spot

Random Lengths composite price. Volatile — driven by Canadian tariffs and housing demand cycles.

Steel HRC

$820/ton

-3%Spot

Hot-rolled coil steel. Key input for structural and rebar. Tariff-sensitive.

Construction GDP

+2.1%

Q4 2025Quarterly

AGC confidence

58

-3ptsQ1 2026

PPI Construction Materials (Index)

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