London 2012 To Send Building Fees Soaring

The huge construction projects required for the London 2012 Olympics is set to
raise building fees in England by close to £4bn according to the Taxpayers’
Alliance.

According to the lobby group, overall inflation of building fees is one of
the ‘hidden costs’ of the London 2012 Games which will see £5.3bn invested in
construction and regeneration of the stadia and facilities required for the
Olympics.

The Taxpayers’ Alliance claims that the knock-on effect of construction
inflation in London and the South East could increase the cost of new public
buildings, like city academies and GP surgeries.

It could also boost fees for new private housing, making affordability even
worse for first time buyers with the increases also likely to make new social
housing more expensive in every London borough.

For new construction orders in this region, which are expected to reach well
in excess of £10bn by 2012, this will mean substantially higher prices for
buyers.

According to the lobby group’s analysis, if the Olympics adds 1.25% to
construction inflation each year between now and 2012, the increased cost of
building orders that can be linked to the London Olympics will reach £3.9bn.