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Prole.
Materials have actually fallen slightly recently, labour is definitely the issue. The cost of living is obviously the main driver but there are still people taking the piss. The architects we're using find contractors quote more for the same job if it's a bigger house in a nicer area.
I'm sure you can do what you're saying you can for those figures but most people in London will have to hunt around to get those prices and I think you'd be talking very basic.