The industry had been risking overheating last year, as the shortages of skilled labour and materials such as cladding systems increased pressure on prices.
G&T now predicts UK tender prices will increase 3% over the next two years, compared with its earlier estimate of 3.5%. All regions except East Anglia and Northern Ireland, which remain the same, have seen their increases reduced.
Meanwhile, a survey from the Scottish Building Federation found that the outlook for the Scottish construction sector remained positive. It said that activity in the final quarter of last year was stable, led by strong housing repair and maintenance and the private housebuilding sector. But demand in the commercial and industrial markets remained weak.
The survey found a shortage of joiners and bricklayers in some areas, with 41% of those surveyed saying that finding bricklayers was difficult or very difficult.