After a long stretch of high inflation, cost increases in Bristol’s construction market are starting to stabilise. Prices are still high and continue to put pressure on project viability, but the general mood is one of optimism.

A lot of activity is being driven by major regeneration programmes, such as Temple Quarter Enterprise Campus and Bedminster Green, along with the ongoing need for more housing across the city. Material cost fluctuations have calmed, but projects are still being held back by ongoing skills shortages and high labour costs.

Even with these near-term challenges, Bristol is moving into a period of major long-term regeneration. In the short term, the picture is varied. There’s strong activity in purpose-built student accommodation and build-to-rent schemes. Big regional infrastructure projects, such as the newly named Aviva Arena, are also contributing to demand. However, other markets are slowing down or stalling, mainly because of ongoing pressures from material costs, subcontractor insolvencies, and a shortage of skilled labour.

Across Bristol and the wider region, contractors are dealing with a tough market: input costs remain high, but tender price inflation is relatively subdued, so margins are still being squeezed.