By Róise Collins
THE cost of rebuilding houses in the North West region has increased by an average of 12 per cent in the past twelve months, the latest House Rebuilding Guide published by the Society of Chartered Surveyors Ireland (SCSI) has revealed.
This means that rebuild costs across counties Donegal, Mayo, Sligo and Leitrim have increased from an average of €2,041 per sqm last year to €2,280 per sqm this year.
The report outlines how the increase in rebuild costs continues to be driven by a shortage of labour and high demand for builders.
“Overall, the construction market is extremely busy, and this means it can be difficult to source labour or subcontractors for any type of build, particularly electrical, plumbing and heating.
“Material prices have started to stabilize for certain materials, however concrete products are still experiencing price increases as are insulation products, windows, and plumbing products and these are some of the key material cost drivers.
“Rebuilding a property is not the same as building new houses on a green field site. It requires specialist skills relating to demolition and supporting neighbouring properties. Rebuild projects can also present access challenges.
“As a result, it is almost a niche market and there can be difficulty sourcing contractors to take on rebuild projects. This will naturally be reflected in tender prices for such projects,” said Chartered Quantity Surveyor Kevin Brady.
The SCSI House Rebuilding Guide is used by homeowners to calculate the rebuilding costs of their home for house insurance purposes.
“Homeowners need to ensure their house is adequately insured so that in the event of a total or partial loss situation i.e. a fire, they are covered under their insurance policy when reinstating or rebuilding.
“For example, rebuild costs for a 3-bed-semi, the most common house type in the country have increased by €23,814 across the North West region over the past 12 months,” Mr Brady added.
For homeowners affected by Mica or Pyrite, there are important differences between the SCSI’s Report on Construction Costs for the Defective Concrete Block Grant Scheme and the SCSI Guide to Rebuilding for Insurance Purposes.
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