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Average building costs fall by around a quarter from 2023 peaks according to Checkatrade figures - as material costs and labour inflation fall
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Checkatrade’s Home Improvement Index shows that the average price of jobs in its building category have fallen 14% in a year and 25% since 2023 peaks - an average drop of £2,000
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More stable costs sees supply risk premiums ‘vanish’, leading to falling prices
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Falling costs for key materials such as steel, plywood and gravel contribute to the drop
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This is supported by falling labour cost inflation, which has returned to normal levels
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Checkatrade CEO says ‘key shift’ in pricing is good news for homeowners and tradespeople
The period of hyper-inflation in the UK home improvement sector appears to have ended, with average costs for jobs in Checkatrade’s ‘building’ category falling 14% in the last year and 25% from their 2023 peaks.
The figures are from Checkatrade’s latest Home Improvement Index which analysed over 12 million tradesperson jobs over the past three years. It shows that the median cost of a ‘building’ job booked through Checkatrade - which is a mix of large and small building jobs from knocking through internal walls to extensions or conversions, dropped to £6,000 in 2025. This is from £8,000 in 2023, when the impact of supply chain issues and labour inflation were being keenly felt.
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Checkatrade believes the reversal is being driven by a mixture of easing material costs and associated ‘supply risk premiums’ - often added to a quote as a ‘buffer’ to protect tradespeople against rapid, unpredictable cost increases.
It has been supplemented by a return to historic norms for labour inflation, and a dip in contractor profit margins as competition for projects in homes intensifies.
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Although building is one of the largest trade categories, the Checkatrade Home Improvement data also showed double-digit falls in other key areas year-on-year including:
Windows, conservatories and doors (-33%)
Metalwork (-22%)
Groundworks (-13%)
Renewable energy (-12%)
Central heating (-11%)
Impact of material and labour costs
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Data from the Government’s Construction Building Materials Price Indices confirms that the double-digit inflation of 2022 and 2023 (peaking at 15.5%) has ended. Key domestic materials saw year-on-year price drops in late 2025, including steel (–7.0%), imported Plywood: (–4.5%) and gravel, sand & clays (–3.7%)
This is from a peak in 2022-23, when some indexes were in the 20%+ range over the period.
The All Work Materials Index was down –0.9% year-on-year in January 2025 and while it increased slightly to 3% in November (the most recent data available), this is in line with historic norms.
While labour inflation peaked as high as 10% in 2023, it has now fallen back to 2-5%, which is also a return to historic norms for the sector (i.e. in line with inflation from 2010-2020.
Commenting on the data, Jambu Palaniappan, CEO at Checkatrade, said: “We are seeing a key shift in pricing in the home improvement and domestic construction sector. Supply risk premiums which were required to protect tradespeople against volatile material price hikes and double-digit labour inflation are vanishing now those risks have been largely removed.”
“While labour costs are still rising modestly, the return to historic norms of 2-5% gives contractors the stability they need to price more competitively.
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“A further factor in falling prices is demand - which has fallen from the highs seen after lockdown, and the housing market has slowed. As a result, there’s a bit more competition for work, leading to lower costs for consumers.
Commenting on what this means for consumers and the industry, Jambu Palaniappan added: “This softening of prices is good news for homeowners, particularly those choosing to improve, rather than move - perhaps the best time in the past few years. Meanwhile, tradespeople will generally welcome the return of stability. Lower material and predictable labour costs means projects are easier to plan and business growth will be steadier."
The data could be coming at a good time for homeowners with multiple reports* suggesting that increased numbers will be set to ‘improve not move’ when it comes to their home in 2026.
To help consumers keep abreast of changing prices, Checkatrade’s Job Estimate Calculator gives homeowners reliable estimates of job costs in their area, taking into account the latest price changes.
EXPLAINER: What are supply risk premiums and why have they vanished?
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A supply risk premium can be added to a quote as a ‘buffer" to protect tradespeople against rapid, unpredictable cost increases between the time a quote is given and the time the materials are actually purchased.
For a tradesperson, this can potentially turn a profitable job into a loss-making one - and therefore became a necessary contingency for many jobs during 2022-23 when prices were particularly volatile.
Jambu Palaniappan, CEO
