Our forecast for UK average tender price inflation remains flat at an average 1% in 2018.
We have downgraded our 2018 forecasts for some UK regions, with the exception of Greater London and South East which have increased to 1% and 0.5% growth respectively to reflect the market demand we are seeing.
Growth continues into 2019 with London and South East up 0.5% and the rest of the UK broadly flat at 1%.
Despite upward pressure on input costs, our analysis of tenders and market survey is not indicating tender prices rising at the same rate. This may be reflective of contractors trying to build forward order books in 2018 and 2019.
In the longer term assuming a clear agreement with the EU on future trading and continued construction demand, we are currently forecasting a return to long term average inflation levels in 2022.
Our forecasts take account of all sectors and all projects as a statistical average indicating an overall trend in pricing. It should be remembered that individual projects may experience tender pricing above and below the average according to project specific components.