Home Improvement costs up by 20%
Wednesday, June 04, 2008
The rising costs of transport and raw materials and a shortage of tradesmen is pushing up the costs of home improvements, according to new figures by RICS’ Building Cost Information Service (BCIS).
BCIS’ updated Property Makeover Price Guide gives homeowners an accurate guide to what they should expect to pay for home improvements. It has found the average cost of improvement work has risen by 20% over the past two years for a number of reasons.
No longer can homeowners pick and choose from the glut of quality EU tradesmen as the number of central and eastern European nationals returning to their native countries is on the rise. With half of the estimated one million British based Poles having already left the UK,competition for labour is pushing up costs.
The upward trend in oil prices is continuing to fuel the rising cost of transport, with forecasters predicting oil to rise to $200 US (£100) per barrel in the next few years, some experts are predicting this to have more impact on economies than the credit crunch crisis.
Global demand for raw materials remains at an all time high, with emerging giants like China and India showing no signs of a slowdown, commodity prices will remain high for years to come. This is no more evident than in the various trades where the cost of materials have pushed up the overall costs. Roofing costs have risen by 26%, plumbing and electric work by 22% and painting has risen by 17%, all outstripping inflation over the past two years.
BCIS Executive Director, Joe Martin, said: “The downturn in housing is forcing some homeowners to become more creative in meeting their needs. Many are choosing to stay put and renovate or extend in order to upgrade their property. This can be a wise strategy as home improvements add value to a property, and people will be well placed to take advantage of this uplift in value when the market shrugs off the current slump.
"Given that the cost of home improvements rose by 20% over the past two years compared with only eight percent in average wage growth, many homeowners are opting to act now rather than paying more further down the track."
Relevant Links:
www.bcis.co.uk
BCIS’ updated Property Makeover Price Guide gives homeowners an accurate guide to what they should expect to pay for home improvements. It has found the average cost of improvement work has risen by 20% over the past two years for a number of reasons.
No longer can homeowners pick and choose from the glut of quality EU tradesmen as the number of central and eastern European nationals returning to their native countries is on the rise. With half of the estimated one million British based Poles having already left the UK,competition for labour is pushing up costs.
The upward trend in oil prices is continuing to fuel the rising cost of transport, with forecasters predicting oil to rise to $200 US (£100) per barrel in the next few years, some experts are predicting this to have more impact on economies than the credit crunch crisis.
Global demand for raw materials remains at an all time high, with emerging giants like China and India showing no signs of a slowdown, commodity prices will remain high for years to come. This is no more evident than in the various trades where the cost of materials have pushed up the overall costs. Roofing costs have risen by 26%, plumbing and electric work by 22% and painting has risen by 17%, all outstripping inflation over the past two years.
BCIS Executive Director, Joe Martin, said: “The downturn in housing is forcing some homeowners to become more creative in meeting their needs. Many are choosing to stay put and renovate or extend in order to upgrade their property. This can be a wise strategy as home improvements add value to a property, and people will be well placed to take advantage of this uplift in value when the market shrugs off the current slump.
"Given that the cost of home improvements rose by 20% over the past two years compared with only eight percent in average wage growth, many homeowners are opting to act now rather than paying more further down the track."
Relevant Links:
www.bcis.co.uk
Labels: BCIS, building costs, home improvement, House market, Housing market, uk housing
