Rising UK Building Costs Threaten Growth Targets

Soaring construction costs and regulatory demands are stalling major UK infrastructure and housing projects. The delays threaten the government growth targets ahead of the upcoming budget.

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Riverside housing beside the River Thames in Purfleet, east London, Britain, October 16, 2026. Several regeneration and infrastructure projects in the area are yet to be started, or remain partially completed. REUTERS/Toby Melville

A £1 billion regeneration plan in Purfleet-on-Thames has delivered only 34 homes in 17 years as rising building costs stall growth across the United Kingdom.

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