Construction firms prepare to put up prices as costs bite
Summary
The article reports that a significant share of construction firms expect to raise prices in October as rising input, labour and energy costs continue to squeeze margins. ONS survey data also indicates weakening turnover and heightened concern about inflationary pressures across the sector, with smaller subcontractors seen as particularly exposed.
Why it matters
For residential property surveyors, sustained cost inflation can affect repair, refurbishment and new-build pricing, as well as the reliability of contractor quotations. It also increases the risk of delays, insolvencies and contract disputes on projects where cost escalation is not adequately managed.
Key points
- 32% of construction businesses expect to increase selling prices in October, the highest level since February 2023.
- Rising oil, energy and labour costs are feeding through the construction supply chain.
- Smaller subcontractors are highlighted as being at particular risk from insolvency and financial strain.
- ONS data shows turnover pressure, with 28% of trading businesses reporting a fall in August.
- Businesses remain concerned about energy prices and wider economic uncertainty.
This is an RPSA summary of a publicly available article. The full content remains with the original publisher.
