In our TPF Q2 2023 report, RLB provides a forecast of tender price uplifts for UK regions, for 2023 to 2025.
The report explores the local effects of the wider national economic situation, by focusing on regional perspectives and regional effects across the country. While there is no tangible “national” cost of construction work, the local markets are certainly interwoven in such a way as to be inter-dependent, so effects felt in one region are often closely aligned with others’ situations.
The broad situation is one of activity levels being generally high. Regions have noted the stabilisation of commodities prices and downstream materials prices, but not necessarily a reduction. As a result, the inflation that persists elsewhere in the economy applies to construction as well with, it would seem, little prospect of a fall in material costs.
Between the Q1 and Q2 2023 editions of the TPF, a review of 2022’s year-end figures reveal a marginal softening of RLB’s weighted average of tender price movements for the year, but a slight increase in the weighted forecast uplift for 2023. That slight uplift, while speculative at present, suggests reasonable confidence across markets around the regions of the UK.