The BCIS Private
Housing Construction Price Index (PHCPI) calculated using housebuilders' costs
for 1Q2019 show an increase of 0.9% on the previous quarter and 4.3% increase
when compared to the same quarter last year.
Construction output
from the housing sector has been rising steadily since 2013 and at constant
prices is up 5.2% in the year to 1Q2019.
Private
housebuilders' costs in the latest quarter continue to rise as reported by 81%
of contributors. Of those that indicated a cause, 50% stated that both labour
and material costs had increased, whereas 29% of contributors reported labour
and 21% material cost rises.
The most common
material increases identified were plasterboard and insulation. Other materials
mentioned by at least one respondent were:
- timber kits
- roof tiles
- bricks and
- blocks.
On average,
respondents expect costs to rise by a further 1.4% in 2Q2019.
The PHCPI is based
on housebuilders costs in constructing a standard house. The index is adjusted
for changes in specification and reflects only the movement in the underlying
direct costs to housebuilders.
