The Isle of Man has been ranked joint 16th most expensive place to build in the UK, according to the Building Cost Information Service (BCIS).
The island’s location factor of 118 places construction costs 18% above the UK average, comparable with parts of Outer London.
The review cites reliance on imported materials, a constrained labour market and the premium attached to off‑island contractors as key drivers.
Stakeholders interviewed for the interim report described a 20–30% uplift over UK construction costs, consistent with the BCIS index.
The island’s location factor has risen steadily over the past decade, climbing from 107 to 118, including an 11% increase since 2020.
Analysts say such movement reflects inflation diverging from UK norms, typically caused by limited labour supply or dependence on transported materials. Comparable islands such as Guernsey and Jersey show similar trends.
