Labour rates hit a new high last month, reaching £1,048 per week for self-employed tradespeople.

Latest figures from the industry’s biggest payroll provider show average earnings for self-employed tradespeople increased 1.9% to £1,044 per week during October.

The return of inflationary pressure in the labour market mirrors price increases in parts of the materials and product market with some manufacturers citing employer national insurance contributions as fuelling the need to raise prices.

Hudson Contract pay trend data showed shows year-on-year, earnings up 4.8% despite ongoing uncertainty in the market.

London saw the strongest growth (up 4.9% to £1,147) followed by Wales (up 4.4% to £1,208) and the East Midlands (+4.1% to £1,097).

Insulation, shop fitting and steel and timber frame erection trades saw the biggest increases in earnings.

Managing director Ian Anfield said: “Alongside these rate increases, we are also seeing increases in the number of payments made to operatives by some of our clients.

“However, it’s a mixed bag for the construction industry. Everyone was waiting for the election. Then it came and went. Everyone was waiting for the budget. Then it came and went. Now, everyone is waiting for the promises of planning reform and infrastructure investment to come to fruition at the same time as waiting for legislation that was mentioned in the Budget to bite.

“Meanwhile, despite the politics, there is still strong appetite for high-rise concrete frame structures in big conurbations like Birmingham, Leeds, Manchester, Newcastle and Sheffield.

“The housing market has proved more resilient than expected despite rising mortgage prices as demand still outstrips supply in some areas and investors favour build-to-rent schemes.”