A TOP COMMERCIAL property agent in Hampshire has published a guide on how much it costs to build property per square metre.

Austin Adams, which has offices in Southampton and Portsmouth, stressed that the figures are approximate building costs provided for reference purposes only.

It also said the figures vary, depending on the precise specification, but assume a good quality specification with no adverse site or building conditions. The figures exclude professional fees and VAT.

Jonathan Fairchild, Austin Adams' Southampton-based director of building surveying, said: "Building costs continue to soar upwards way ahead of inflation. "Skills shortages, materials prices (especially steel) and new work output significantly above historic trends mean that costs are expected to be well ahead of the rate of inflation.

"This itself is expected to be between two per cent and three per cent.

"High oil costs will affect the industry both through fuel and construction materials.

"Building cost inflation in the commercial sector is running at approximately 7.5 per annum but in private housing it was a whopping 15 per cent last year - though this should fall back to approximately 11 per cent - 12 per cent in the current year, partly due to the reduced order book during the latter part of last year."