21 Mar 2017
Private housebuilders' costs rose at over 4% per annum in fourth quarter of 2016 in response to demand pressures on resources.
The BCIS Private Housing Construction Price Index rose 1.5% in the latest quarter (4Q 2016) — 65% of contributors indicated costs had increased. Three quarters of contractors who provided reasons for rises identified materials and two thirds identified labour.
Cost pressures specifically mentioned by individual contractors were:
- Bricks and blocks
- The impact of exchange rates on imported prices
- Cavity insulation
- Roof tilers
The responding contractors expect their costs to continue to rise in the first quarter of 2017 by a further 1.5%.
The PHCPI is based on housebuilders' costs in constructing a standard house; the latest quarter is based on contractors’ expectations; the TPI is based on rates in accepted tenders; the GBCI is based on factory gate prices for materials and nationally agreed wage awards.
The BCIS Private Housing Construction Price Index, the BCIS General Building Cost Index and the BCIS Tender Price Index are published in the BCIS Online service.
If you are a housebuilder and would like to participate in the BCIS Private Housing Construction Price Index quarterly survey, please contact the BCIS Data Team.
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