Inflation added £23bn to the cost of construction last year

This is the first-time annual construction value surpassed £200bn and represented a 15% rise from 2021 output values in nominal terms.

The Bank of England’s decision to increase the base rate to 4% is likely to weigh heavily on the residential sector over 2023 as mortgage holders tighten their belts.

 The UK economy is widely predicted to stagnate as a best-case scenario over the short-term, which may well see other commercially sensitive sectors dependent on consumer spending also fall.

Construction product inflation and shortages are expected to ease over the second half of 2023 but will not return to the stability in the 2010’s.

Contractors are working on razor-thin margins. All in all, 2023 is likely to be another bumpy year.