A shortage of building materials caused by Brexit and Covid has pushed up prices dramatically, according to industry chiefs.
The costs of everything from wood and steel to cement and concrete rose last month at the second fastest rate in the 24-year history of a survey that measures it.
Firms have to pay more for supplies, which is then passed on to the customer.
There are suggestions timber prices have doubled in the past six months alone and cement is up by around 30%.
Data from number crunchers IHS Markit and the Chartered Institute of Procurement and Supply revealed “accelerated input prices” last month.
The report warned construction firms were dealing with “formidable supply chain pressures”.
It added: “Companies widely noted sustained, and severe, supply chain disruption in August.” CIPS group director Duncan Brock said: “A combination of Covid restrictions, Brexit delays and shipping hold-ups were responsible.” The record high for rises was in June.
Survey chiefs use an index to measure output in the sector, with anything above 50 showing it is growing.
Last month’s score of 55.2 was down from 58.7 in July, and the lowest since February.
IKEA has become the latest victim of a lorry driver shortage as it struggles to supply enough mattresses.
JD Wetherspoon, McDonald’s and Nando’s have all had shortages.
The CBI warned has a staffing crisis hitting businesses could last for up to two years and hit the UK’s economic recovery.
