UK Regional Construction Cost Benchmarks 2026 — QS Support Reference Guide

UK Regional Construction Cost Benchmarks 2026 — QS Support Reference Guide

Regional construction cost benchmarks for quantity surveyors pricing projects across the UK. Updated Q1 2026. All figures are elemental costs per m² gross internal floor area (GIFA) unless stated.

These benchmarks are intended as a starting point for cost planning and should be adjusted for project-specific variables including specification, procurement route, programme, site conditions and location factor. All figures are at Q1 2026 price levels, excluding VAT and professional fees.


How to Use This Guide

These figures represent median costs — 50th percentile out-turn costs from recent completed projects. Expect a range of ±15–25% depending on specification and market conditions.

Location factors adjust costs from a London base. Apply the relevant location factor to London benchmark costs to arrive at regional costs, or use the regional figures directly where provided.

Specification levels are defined as:

  • Standard — functional, value-engineered specification
  • Good — above average specification, typical of commercial and professional buildings
  • High — premium specification, city centre commercial or luxury residential

Location Factors

Apply these factors to adjust costs between regions. London = 1.00 base.

RegionLocation Factor
Central London1.00
Outer London0.93
South East0.90
East of England0.87
South West0.86
West Midlands0.85
East Midlands0.84
Yorkshire & Humber0.83
North West0.83
North East0.81
Wales0.80
Scotland0.83
Northern Ireland0.78

Residential — New Build

Private Residential

TypeStandard £/m²Good £/m²High £/m²
Houses — 2 storey£1,650£1,950£2,450
Houses — 3 storey£1,750£2,050£2,600
Flats — low rise (1–4 storey)£1,800£2,150£2,750
Flats — medium rise (5–10 storey)£2,100£2,500£3,200
Flats — high rise (11+ storey)£2,650£3,100£4,000
Mixed use — residential above commercial£2,200£2,600£3,400

Affordable / Social Housing

Type£/m²
Houses — 2 storey£1,450 – £1,650
Houses — 3 storey£1,550 – £1,750
Flats — low rise£1,600 – £1,900
Flats — medium rise£1,900 – £2,250

Note: Affordable housing costs reflect grant-funded specifications. Costs exclude land acquisition, abnormals and Section 106 obligations.

Residential Conversion and Refurbishment

Type£/m²
Light refurbishment — cosmetic works only£200 – £400
Medium refurbishment — new M&E, kitchens, bathrooms£600 – £900
Full refurbishment — strip out and rebuild internally£900 – £1,400
Change of use — office to residential£700 – £1,100
Listed building refurbishment — premium£1,200 – £2,000

Commercial — Offices

New Build Offices

TypeStandard £/m²Good £/m²High £/m²
Out of town — single storey£1,400£1,750£2,200
Out of town — multi storey£1,600£1,950£2,400
City centre — multi storey£2,200£2,700£3,500
City centre — prestige tower£3,200£3,800£5,000+

Office Fit Out — Cat A Base build services, raised floors, suspended ceilings, basic finishes

Type£/m²
Standard Cat A£350 – £500
Good Cat A£500 – £700

Office Fit Out — Cat B Full fit out including partitions, furniture, AV, branding

Type£/m²
Standard Cat B£600 – £900
Good Cat B£900 – £1,300
High specification Cat B£1,300 – £2,000
Premium — financial services, legal£2,000 – £3,500

Commercial — Retail

TypeStandard £/m²Good £/m²
Supermarket — new build shell£800£1,050
Retail unit — shell and core£600£800
Retail fit out — fashion£700£1,200
Retail fit out — food and beverage£1,100£1,800
Shopping centre — new build£1,800£2,400
Drive-through restaurant£2,200£2,800

Industrial and Logistics

TypeStandard £/m²Good £/m²
Distribution warehouse — single storey£550£750
Industrial unit — light industrial£600£800
Industrial unit — heavy industrial£750£1,050
Cold store — temperature controlled£1,100£1,500
Data centre — shell£2,500£3,500
Data centre — fully fitted£8,000£15,000+

Note: Industrial costs assume steel portal frame construction on flat, uncontaminated sites. Abnormal ground conditions, service infrastructure and fit out are excluded.


Education

Type£/m²
Primary school — new build£2,800 – £3,400
Secondary school — new build£3,000 – £3,600
Sixth form college£3,200 – £3,800
Further education college£3,400 – £4,200
University teaching building£3,800 – £5,000
University laboratory£5,500 – £8,000
University student accommodation£1,900 – £2,600

Note: Education costs are based on Department for Education output specifications and include all mechanical and electrical services. Furniture, fittings and equipment (FF&E) are excluded.


Healthcare

Type£/m²
GP surgery — new build£3,200 – £4,000
Primary care centre£3,500 – £4,500
Community hospital£4,500 – £5,500
District general hospital£5,500 – £7,000
Specialist hospital£7,000 – £10,000
Care home — residential£2,200 – £2,800
Care home — nursing£2,600 – £3,200

Note: Healthcare costs comply with NHS Scotland and NHS England Health Building Notes (HBN) and Health Technical Memoranda (HTM). Specialist equipment, decant and phasing costs are excluded.


Hotels and Leisure

Type£/m²
Budget hotel — new build£1,600 – £2,000
Three star hotel — new build£2,200 – £2,800
Four star hotel — new build£2,800 – £3,800
Five star hotel — new build£3,800 – £6,000
Hotel refurbishment — light£400 – £700 per room
Hotel refurbishment — full£25,000 – £60,000 per room
Gym — fit out£500 – £900
Restaurant — fit out£1,000 – £2,500
Cinema — new build£2,200 – £3,000

Infrastructure

Roads and Highways

TypeCost
New single carriageway road£3m – £6m per km
New dual carriageway£8m – £15m per km
Urban road — new build£5m – £12m per km
Road resurfacing — minor works£80 – £120 per m²
Road resurfacing — full reconstruction£180 – £280 per m²
Car park — surface level£3,000 – £5,000 per space
Car park — multi storey£8,000 – £15,000 per space
Car park — basement£20,000 – £40,000 per space

Drainage and Utilities

TypeCost
Foul sewer — 150mm diameter£180 – £280 per m
Foul sewer — 300mm diameter£350 – £550 per m
Surface water drain — 150mm£160 – £250 per m
Water main — 100mm diameter£200 – £350 per m
Gas main — medium pressure£250 – £400 per m
HV electricity cable — buried£400 – £700 per m

Key Cost Drivers in 2026

Labour — Skilled trades remain in short supply across all regions. Bricklayers, groundworkers and M&E engineers command significant premiums in London and the South East. Allow for labour shortages in programme and cost planning.

Materials — Structural steel prices have stabilised following post-pandemic volatility but remain elevated against pre-2020 benchmarks. Copper and aluminium — key components in M&E packages — remain subject to global commodity price fluctuations.

M&E — Mechanical and electrical costs continue to represent an increasing proportion of total project costs, particularly in healthcare, education and commercial projects. Typical M&E allowances:

  • Residential: 15–20% of construction cost
  • Commercial offices: 25–35% of construction cost
  • Healthcare: 40–50% of construction cost
  • Laboratories: 50–65% of construction cost

Preliminaries — Typical prelims as a percentage of measured works:

  • Small projects under £500k: 12–18%
  • Medium projects £500k–£5m: 10–15%
  • Large projects £5m–£50m: 8–12%
  • Major projects over £50m: 6–10%

Contractor's overhead and profit — Current market rates:

  • Competitive tender — traditional procurement: 3–6%
  • Negotiated contract: 5–8%
  • Framework — established relationship: 4–7%

Professional Fees

DisciplineFee Range
Architect4–8% of construction cost
Quantity surveyor1.5–3% of construction cost
Structural engineer1–2.5% of construction cost
M&E engineer1–2.5% of construction cost
Project manager1.5–3% of construction cost
Planning consultant£5,000 – £25,000 fixed
CDM principal designer0.25–0.75% of construction cost

Note: Fee ranges reflect market rates for competitive appointments. Negotiated or framework appointments may vary significantly.


Inflation Allowances

For projects with construction periods extending beyond Q1 2026, apply the following tender price inflation allowances:

PeriodAllowance
Q2 20260.5%
Q3 20261.0%
Q4 20261.5%
20273.0 – 4.5%
20283.5 – 5.0%

These allowances are indicative based on current forecasts. Actual inflation will vary. For fixed price contracts extending beyond 18 months, consider recommending Option X1 price adjustment for inflation.


Important Notes and Limitations

These benchmarks are provided as a professional reference guide for quantity surveyors. They are based on analysis of recent UK construction projects and published industry data.

These figures should not be used as a substitute for detailed cost planning or elemental cost analysis on individual projects. Every project has unique characteristics that affect cost — ground conditions, access, programme, procurement route, specification and market conditions at the time of tender.

QS Support updates these benchmarks quarterly. Members are notified when new benchmarks are published via the monthly newsletter.

For project-specific cost advice, post in the QS Support community forum or contact us directly.