Labour costs soar to all-time high in London

Aaron Morby 3 years ago
Share

Labour rates on building sites broke records in London last month as average weekly earnings for self-employed tradespeople hit £1,027.

Plumbers enjoyed the highest earnings of all trades at £1,139 per week
Plumbers enjoyed the highest earnings of all trades at £1,139 per week

According to industry payroll specialist Hudson Contract, subbies also enjoyed record earnings in the East Midlands (£1,070) and the South West (£934).

Across England and Wales, earnings increased by 0.9% to £959, matching the all-time high seen in December. 

Ian Anfield, managing director of Hudson Contract, said: “For pay to reach these levels at this time of year when building sites are usually dogged by bad weather suggests this is going to be strong year for workload and earnings.

“While there are still huge issues around inflation, fuel and materials which can only be made worse by the war in Ukraine, the construction industry is still running at full capacity. 

“People have built up cash reserves for deposits on new homes and renovation projects, developers are creating new models for shared ownership schemes and the housing sector has not yet replenished the supply that was lost after the financial crisis in 2007. 

“There is still huge pent-up demand for housing in the UK and there is still a shortage of skilled workers. Our clients are flat-out with full order books though as we saw in February, there are not quite as many tenders coming through the door.” 

Subcontractors who specialise in demolition and wrecking saw the biggest monthly increase at 8.1% to £938 per week, followed by shop fitting (5.3% at £1,096) and steel and timber frames (3.9% at £979). Plumbers enjoyed the highest earnings of all trades at £1,139 per week. 

Anfield said: “Some of our clients are finding they can pass on increases in costs to their clients, especially if their contracts include price escalation clauses.

“Others are having to suck it up. One of our groundworks customers are saying that inflation is running at 15% for them in labour, plant, red diesel and materials.”

 

 

Latest news

Civils winners revealed for £12bn National Grid high voltage work

Contractor wins complete £59bn investment programme
12 hours ago

United Living quits new-build housing as costs mount

£136m-turnover housing arm to wind down as focus shifts to core infrastructure
15 hours ago

Fight looms for £3bn West Midlands building framework

Galliford Try, Morgan Sindall and others face fight to keep CWM seats
16 hours ago

Industry anger over sudden CITB funding changes

Smaller contractors lose funding route worth £10,000 a year
16 hours ago

Plans in to transform former GSK London HQ with 2,300 homes

Landmark 13-acre scheme set to transform Brentford Great West Road campus
15 hours ago

Watch Murphy near completion of major new rail bridge

Latest video reveals progress on Greek Street bridge during 21-day train suspension
15 hours ago

Mount Anvil’s in-house builder drives results in testing market

Group development pipeline holds steady at 3,384 homes despite dip in profit
17 hours ago

Costain margin heads for 4.5% after half-year profit rise

Roads and HS2 rephasing hit transport revenues but £5.6bn forward book to support growth
2 days ago

Hinkley contractors face prosecution over rebar mesh fall

Bouygues and Laing O'Rourke face action brought by the Office for Nuclear Regulation
2 days ago

Farrans to build new £59m Paisley bridge

Work to start soon on transport project for Renfrewshire Council
2 days ago

Crown Estate hires Olympics village veteran to lead delivery push

John Nicholson to oversee £16bn portfolio’s major UK development pipeline.
2 days ago

Henry Boot gets green light for 2,500 new homes

Hallam Land division sees signs planning system is speeding-up
2 days ago

Wates inks £100m deal on first new-design prison houseblocks

HMP Onley expansion leads roll-out of new standardised design
3 days ago

£122m deal to unlock Newcastle’s last brownfield site

Land remediation funding paves way for 2,500-home Forth Yards neighbourhood
3 days ago

McLaren lands Heathrow logistics deal

1.6 hectare airport site to be transformed into modern warehouses
3 days ago

McAlpine veteran to lead T&T’s project management drive

Former Olympic Stadium lead Mike O’Donnell takes lead role with focus on major capital project delivery
3 days ago

IES snaps up Nexus Power out of administration

Utilities group strengthens expertise in 400kV jointing and offshore markets
3 days ago

Thames Water tenders £120m water main rehab deal

Company seeks 2–5 contractors for London and South East renewal works
3 days ago

Lower Thames Crossing to lead green planning reforms

New system to avoid another £100m HS2 bat tunnel
3 days ago

Mace lands latest 30-storey City of London tower

85 Gracechurch Street near Leadenhall Market to be transformed
4 days ago

Vinci gets go-ahead for £250m Stockport 8 scheme

Contractor to start first phase of 435 net zero homes next year
4 days ago

£80m bid race to convert Oxford Debenhams into labs

Crown Estate advance plan to convert former six storey department store
4 days ago

Bennett steps-in to finish Guinness Covent Garden brewery

Original fit-out contractor Beck Interiors fell into administration
4 days ago

Work-to-rule set to hit Sellafield clean-up

Action by 1,500 construction workers across 34 contractors
4 days ago

Aureos breaks ground on £45m Howden Relief Road

Yorkshire road will pave way for 2,000-home scheme
4 days ago

Oxford United win green light for £150m all-electric stadium

Planners back 16,000-seat Kidlington ground with hotel, plaza and community hub
7 days ago

Demolition record as eight cooling towers come down

Watch Brown & Mason set record at Cottam Power Station
1 week ago

Hitachi Energy named for EGL3 converter station deal

Firm to build major HVDC converter stations in Aberdeenshire and West Norfolk
7 days ago

PAS NW secures landmark £20m civils deal in Lancashire

Groundworks firm wins infrastructure for 429-home Wain Homes scheme
7 days ago

Subcontractors wanted for jobs across the South West

Register now for latest Constructionline event in Bristol
7 days ago