Material pricing rarely moves in a straight line, and the last twelve months have been no exception. Broad inflation has eased in many markets, but individual material categories have followed very different paths — some have come down meaningfully, others remain elevated, and a few are still rising.
Understanding which materials are driving costs in your type of project helps you set a more realistic budget and ask better questions when comparing quotes.
Timber and structural wood products
After an extraordinary spike in the early 2020s driven by supply disruption and a surge in renovation activity, timber prices have broadly stabilised. They are not back to pre-2020 levels in most markets, but the sharp year-on-year increases have slowed considerably.
For projects with a significant timber component — extensions, loft conversions, new fencing, decking or structural repairs — material costs are more predictable than they were two or three years ago. Regional supply issues can still cause short-term spikes, particularly for treated softwood in wetter climates, so getting quotes with a defined validity period remains sensible.
Copper and electrical materials
Copper remains one of the more persistent cost pressures across both plumbing and electrical trades. Global demand for copper — driven partly by the growth in electric vehicles and renewable energy infrastructure — has kept prices elevated compared to a decade ago.
In practice, this means that projects heavy in new pipework, rewiring or electrical panel work will have material costs that are meaningfully higher than comparable work done five years ago. Labour tends to dominate electrical project costs, but material pricing is worth factoring in when building your budget.
Insulation products
Insulation material costs have eased somewhat after a difficult period when demand — driven by energy-efficiency programmes and incentive schemes — significantly outpaced manufacturing capacity. Lead times have shortened and prices have moderated, though they remain above 2019 levels.
If your project includes loft insulation, cavity wall insulation or external wall insulation, the material side of the budget is less pressured than it was two years ago. Labour costs for installation vary more by trade and region.
Plasterboard and dry-lining materials
After a period of significant price increases, plasterboard costs have stabilised. Supply chains have recovered and pricing is broadly in line with where most contractors and estimators would expect to find it. Projects involving significant internal wall building, ceiling work or conversions should not face the premium that existed during the supply crunch period.
Aggregate, sand and general groundworks materials
Sand, aggregate and related groundworks materials have seen moderate price increases driven largely by energy costs (kilns and quarrying are energy intensive) and transport. For projects like driveways, patios, extensions with significant groundworks, or drainage work, this is a background cost pressure rather than a dramatic shift — but it is still worth asking for an itemised materials breakdown so you can see how much the groundwork element is contributing to the total.
Steel and structural metal
Steel and structural metalwork prices have come off their 2021–2022 peaks but remain higher than pre-pandemic levels. For most residential projects, steel is a relatively small line item — typically RSJs or lintels for a structural opening. For larger projects such as extensions with steel frames or significant structural alterations, it is worth confirming current steel pricing with your contractor rather than relying on figures from a year or more ago.
What this means for your project budget
A few practical conclusions:
- Labour-heavy projects (painting, cleaning, landscaping planting) are less exposed to material cost trends — local labour rates matter more than commodity prices.
- Copper-heavy projects (rewiring, full re-plumbing) still carry elevated material costs. Build in some headroom.
- Timber projects (fencing, decking, extensions) are more predictable now than a couple of years ago, but ask for a quote validity period.
- Insulation and plasterboard are more accessible than they were during the supply crunch — less need to pad budgets for availability delays.
- Always ask for itemised quotes so you can see the material/labour split and understand which element is driving the cost.
Getting accurate current prices
Any range you find online — including on this site — should be treated as a starting point. The most reliable way to understand current material costs for your specific project is to ask at least three contractors for itemised quotes that break out materials and labour separately. This tells you both the current market price for your project type and how different contractors approach material sourcing and mark-up.
Frequently asked questions
Are building material costs still rising or have they peaked?
The picture varies by material. Timber and plasterboard have broadly stabilised after significant increases. Copper remains elevated by historical standards. Aggregate and groundworks materials face modest ongoing pressure from energy costs. The broad inflationary surge of 2021–2023 has eased, but pre-pandemic price levels have not returned across most categories.
How much of a typical renovation quote is materials versus labour?
It varies significantly by project type. Labour often represents 40–60% of total cost on projects like bathroom renovations, kitchen fitting and roofing. On groundworks and structural projects, materials can take a larger share. Asking for an itemised quote that separates materials and labour is the most reliable way to understand the split for your specific project.
Should I delay my project if material prices are falling?
Generally, no. Labour costs do not fall when materials ease, and trying to time a project around material price movements is difficult. A project done promptly is usually better value than one delayed by twelve months, especially if the delay allows a small problem to grow into a larger one.
Can I supply my own materials to reduce costs?
Some contractors will allow owner-supplied materials, but many prefer to source their own to maintain quality control and ensure materials are covered by their insurance. If cost is a concern, ask the contractor to show you the materials line in their quote and discuss alternatives at that specification level.