Money News
The rising costs of transport and raw materials, and a shortage of tradesmen, are pushing up the costs of home improvements, according to new figures by the RICS Building Cost Information Service (BCIS). Its just launched (and updated) Property Makeover Price Guide gives homeowners an accurate guide as 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.
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. Indeed, with half of the estimated one million British based Poles having already left the UK, competition for labour is pushing up costs.
Meanwhile, the upward trend in oil prices is continuing to fuel the rising cost of transport, with forecasters predicting oil to increase to $200 (£100) per barrel in the next few years. Some experts are even predicting this will have more impact on economies than the ongoing credit crunch.
Elsewhere, global demand for raw materials remains at an all time high, with emerging giants such as China and India showing no signs of a slowdown. Hence, commodity prices will likely remain high for years to come. This is no more evident than in the various trades where the cost of materials has pushed up overall costs. For example, roofing costs have risen by 26%, plumbing and electrical work by 22% and painting by 17%, all outstripping inflation over the past two years.
The guide also allows readers to adjust the figures for their particular location. For example, a 3x3 single storey extension will cost approximately £23,940 in Greater London; in comparison it would cost £19,320 in the North West.
BCIS Executive Director, Joe Martin, said: "The current downturn in the housing market is forcing some homeowners to become more creative in meeting their accommodation needs.
"Many are choosing to stay put and renovate or extend in order to upgrade their property rather than taking on more debt in a falling market. 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."
Martin adds that given that the cost of home improvements rose by 20% over the past 2 years compared with only 8% in average wage growth, many homeowners are opting to act now rather than paying more further down the track.
"Carrying out any type of repair or renovation work on a property can be costly; trying to work out what is a fair price to pay can be equally difficult. The guide not only provides advice on prices but also on the do's and don'ts of employing a contractor and organising building work, planning permission and building regulations," says Martin.
03 June 2008 © Moneyextra.com
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