North West to Benefit from Strategic Alignment as Construction Price Forecasts Remain Stable

A series of long-term investment measures has the potential to strengthen development pipelines across the North West according to the latest Construction Market Intelligence (CMI) report from Rider Levett Bucknall (RLB).

Greater Manchester is to benefit from devolved authority arrangements and will gain control of a £13bn integrated settlement for infrastructure, skills and regeneration between 2026 and 2030.

Liverpool’s 10-year plan to add £10bn to the city’s economy aligns directly with national priorities for advanced manufacturing, clean energy and housing.

Meanwhile, Liverpool’s 10-year plan to add £10bn to the city’s economy aligns directly with national priorities for advanced manufacturing, clean energy and housing.

These initiatives are expected to stimulate development, improve connectivity and support long-term economic growth across the North West, even as inflation and input costs continue to impact project viability.

Stuart Wands an RLB Partner based in the North West, said: “While the Autumn Budget brought no major surprises, its long-term funding commitments provide real opportunities for the North West. Investment through Local Growth Funds and the Mayoral Revolving Growth Fund can accelerate regeneration across our towns and cities, while the £120bn earmarked for infrastructure will support the transport and energy upgrades this region needs.

“Manchester’s devolved powers and integrated settlement, combined with Liverpool’s ambitions in clean energy and advanced manufacturing, position the North West as a leading force in sustainable development. We also welcome investment in new neighbourhood health centres, which will create a stable pipeline for estates work.

“Developers can now plan with greater clarity, and the region is well placed to take advantage of the opportunities ahead.”

RLB’s CMI shows only marginal movements in North West price inflation:

• Forecasts for 2025 have seen a slight uplift from 3% to 3.5%

• Forecasts for 2026 have eased marginally from 3% to 2.5%

Across the UK, near-term market conditions remain challenging as rising input costs, including higher wage rates, continue to place pressure on contractors and outpace tender price movements.

RLB’s CMI shows only marginal movements in national tender price inflation:

• Forecasts for 2025 have seen a slight uplift from 3.03% to 3.17%

• Forecasts for 2026 have eased marginally from 3.41% to 3.27%