06 Sep 2017
Private housebuilders' costs rose at almost 5% in the year to 2nd quarter 2017 in response to demand pressures from resource costs.
The BCIS Private Housing Construction Price Index rose 0.5% in 2nd quarter 2017.
Two thirds of contributors indicated costs had increased. Of those, 67% reported rising labour costs and 73% reported increases in the cost of materials.
One contractor cited higher materials prices due to currency fluctuations, and the rising cost of skilled labour represents a continued challenge to many contractors.
Highlighted resource costs
Resource costs highlighted by individual contractors included:
- bricks and blocks
- the impact of exchange rates on imported prices
- roof tilers
The responding contractors expect their costs to continue to rise in the 3rd quarter of 2017 by a further 0.5%.
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, 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 the BCIS data team
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