EDINBURGH is the second most expensive city in the UK to build in, Turner & Townsend has revealed.
Only London at £2,973 per square metre ranks as more expensive than Scotland’s capital, with Edinburgh sitting at £2,293 per square metre.
Turner & Townsend warned that increases in construction costs, labour shortages, Brexit red tape, and the war in Ukraine will continue to put pressure on prices.
However, it forecasts that Glasgow and Edinburgh will experience the lowest cost escalations of the UK’s major cities – with a 7.5% rate of inflation. This compares to Leeds’ 10%, and Manchester and Birmingham’s 9%.
Martin Sudweeks, UK MD of cost management at Turner & Townsend, said, “The data still shows London topping the league table of UK cities on construction costs. This reflects the convergence of strong demand for new private and public sector development following the pandemic with ongoing supply chain pressures compounded by Brexit and the impact of the war in Ukraine.
“However, regional cities also continue to see substantial cost increases. This is most notable in Leeds, as a result of the unlocking of build-to-rent developments and the growth of investment in student accommodation.
“With inflation expected to increase across all major UK markets this year, businesses will need to focus on careful planning, ensuring contracts are pragmatically developed to take into account potential price rises and, where necessary, to share risk in a balanced way. In-depth analysis of the supply chain and strong relationships with trusted suppliers will be critical to mitigating the impact of inflation.”
