London is the most expensive place in the world to build with high tenders set to rise again, according to a new industry report.

A report by property and construction consultants Rider Levett Bucknall says Britain’s capital had the highest tender prices in the world last year.

The report also predicts prices will rise by 6-8 percent, adding more than £1.5bn to the value of the market.

The high costs are attributed to a surge in the commercial office and housing sector, with work on the new Olympics in east London also adding to costs.

The global construction market is also expanding rapidly, along with rising tender prices, according to report findings.

By staff writer