Henry Davidson Developments says construction costs will spiral once London Olympic work begins.

Construction costs across the UK are set to soar after London’s successful Olympic bid. According to developer Henry Davidson Developments the amount of work created by the 2012 will have a knock on affect on construction costs elsewhere.

Managing director Scott Davidson said: “As soon as work begins on the new Olympic facilities we will move into a period of spiralling construction costs most intense in London with a ripple effect moving outwards.”

Land purchase and construction for the games will cost around £728 million, with the total expense of the games being estimated at between £1bn and £5bn. Henry Davidson said that rising costs will be passed onto taxpayers and consumers.