An analysis of current UK construction cost trends — materials, labour, energy, and what they mean for concrete estimating and project budgeting in 2025.
The UK construction industry enters 2025 in a period of stabilisation after several years of dramatic price volatility. However, costs remain significantly higher than pre-2020 levels across most categories, and new pressures are emerging. Here's what contractors need to know to price their work competitively and protect their margins.
Concrete and Cement
After the sharp price rises of 2022–23 driven by energy costs, ready-mix concrete prices have stabilised but remain elevated. The national average for C30/37 ready-mix was approximately £120/m³ in early 2025, down from a 2023 peak of approximately £135/m³ but still well above the £85–£90/m³ of 2019.
Key factors for 2025:
- Energy costs for cement kilns have eased but remain above historical averages
- Aggregate supply chains are broadly normalised following post-Brexit disruption
- Demand for concrete remains strong from housing and infrastructure pipelines
Outlook: Modest price increases of 3–5% expected through 2025.
Reinforcement Steel
Rebar prices remain volatile, linked to global steel markets, scrap prices, and energy costs at European mills. B500B rebar was trading at approximately £680–£720/tonne ex-works in early 2025.
Outlook: Global steel demand, particularly from China's construction recovery, will be the key variable. Prices could move significantly in either direction.
Labour
The structural labour shortage that emerged post-Brexit and post-pandemic continues to bite. Skilled concrete workers — gang leaders, shuttering joiners, concrete finishers — command significantly higher day rates than three years ago.
- Concrete gang chargehand: £320–£380/day
- Shuttering joiner (experienced): £280–£340/day
- Concrete finisher (power float): £220–£280/day
Wage inflation in construction is running at approximately 6–8% per annum for skilled trades.
Plant and Equipment
Plant hire costs have risen in line with both diesel prices and the capital cost of new equipment. Mobile crane and pump costs in particular have increased significantly, driven by tight equipment supply.
Implications for Estimators
The key practical lesson from current market conditions is that estimates prepared more than 6 months ago are likely to be materially inaccurate. Projects should be re-estimated before tender submission if significant time has passed since the original budget was prepared.
Britespire Construct updates its rate databases monthly to ensure all estimates reflect current market conditions.