London construction costs most expensive in world

The cost of building on prime sites in central London outstrips that of the world's most expensive nation, according to a new global report

Consultant Arcadis' 2014 International Construction Costs Report ranks Switzerland as the world's costliest country for building, with the UK in eighth place overall.

But its authors said factors including the strength of sterling, comparatively poor productivity levels, and the demand for prime residential development meant central London construction costs now exceeded those in Switzerland.

Arcadis also said legal frameworks and issues caused major delays to UK schemes compared with other countries in the 43-nation ranking.