The UK is now the eighth most expensive country to build in, according to a report published this morning.
The International Construction Costs Report by consultancy Arcadis found that price inflation and currency movements had increased the relative cost of UK projects, pushing the country up from 14th in the cost league table last year.
Switzerland is the most expensive place to build, according to the report, with only Hong Kong and Australia breaking up European dominance of the top 10.
India remained the cheapest location of those studied, with the five least expensive all coming from Asia.
Arcadis head of strategic research Simon Rawlinson said: “The cost of construction in London has been heavily impacted by high specification levels in many of the city’s developments, topped off by the fact that its prime residential property is reaching a capacity ceiling, leading to significant cost inflation over the past year.
“This is bolstered by the UK construction industry being much less productive than its US and European peers and the fluctuation in global currencies, especially the strength of the Sterling relative to the Euro.”