Research by Davis Langdon Rising shows that construction costs could hit large infrastructure schemes and proposed.

Building costs in London have risen 14% in two years and are set to rise another 14% in the next two years.

This rise is expected to be higher for the capital than elsewhere in the UK.

The costs partly reflect the rising prices for materials, which shot up by 9.9% in the last year, and strong demand from the private and public sector, allowing contractors to pick and choose.