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Tender prices will rise by a third over the next five years, the BCIS has said. Prices for construction work are expected to increase by more than two-and-a-half times the rate of inflation.

The latest research from the BCIS has calculated a 33% rise in tender prices against a backdrop of 12% general inflation for the coming five years.

The increase will be spurred by a rise in new work construction output and pressure on input costs including labour and materials.

Construction output will grow above its long term annual trend rate during the next five years, the BCIS said. Input costs would be affected by soaring wages, a trend that is also expected to outstrip inflation, and increasing costs for steel and oil.

BCIS is the costs arm of the RICS.