Private housebuilders' costs rose at over 5% in the year to 1st quarter 2017 in response to demand pressures on resources.

In the latest quarter (1Q2017), housebuilders’ costs rose 1.5%. These figures are based on the BCIS Private Housing Construction Price Index (PHCPI) survey. Three quarters of contributors indicated costs had increased in the latest quarter, two thirds reported materials cost rises, 40% reported labour cost rises and 25% cited increases in sub-contractors’ prices.

The general sentiment was that materials costs were rising largely due to the devaluation of Sterling and labour costs were rising due to an acute skills shortage.

Cost increases specifically mentioned by individual housebuilders were:

  • floor beams
  • bricks and blocks
  • the impact of exchange rates on imported prices
  • insulation
  • roof tilers
  • scaffolders
  • bricklayers
  • dry liners
  • plumbers
  • electricians.

The responding contractors expect their costs to continue to rise in the 2nd quarter of 2017 by a further 1%.

Housebuilders’ costs, general construction tender prices and resource costs (1Q2010 = 100)

Click on the file to show the original file.

Source: BCIS

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; and 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

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