THE average rebuild costs in the north west have increased by 10 per cent in the past 12 months.
That’s according to the latest House Rebuilding Guide, published by the Society of Chartered Surveyors Ireland (SCSI).
Findings show that national average re-build costs, which include demolition and site clearance, have increased by an average of 6.2 per cent over the past 12 months.
In the North West house rebuild costs increased by 10 per cent, the highest rate of increase in the country, although the region still has the lowest rebuild costs.
The SCSI’s House Rebuilding Guide, which has been published annually since 1989, is used by homeowners to calculate the rebuilding costs of their home for house insurance purposes.
While welcoming a moderation in the rate of increase – last year’s increase was 12 per cent – Chartered Quantity Surveyor Kevin Brady said labour costs and skills shortages are continuing to drive rebuild costs.
“Due to Covid, the war in Ukraine, high energy prices and supply chain issues the construction market experienced significant volatility over the last five years. The resolution of some shortages and supply chain issues has led to the cost of some materials moderating – the price of insulation, timber and paint for example have generally settled down.”
“However, we are continuing to see increased costs in labour intensive tasks such as demolition and disposal of waste material while skill shortages across plumbing, electrical, heating and other trades are also contributing to increased costs. SCSI members are saying the demand for builders throughout the country remains at an all-time high and this is also a contributory factor to the increases we are seeing in this year’s figures. The introduction of the concrete levy has increased the cost of pre-cast and pouring concrete while the introduction of two new levies on waste and disposal in September is likely to increase costs going forward.”
The SCSI said it’s important to note, for people whose homes have been affected by Mica or Pyrite, that there are important differences between the SCSI’s Report on Construction Costs for the Defective Concrete Block Grant Scheme – which provided independent average rebuilding costs under which people whose homes have been affected by these issues can apply for grants to restore their properties – and the SCSI Guide to Rebuilding for Insurance Purposes.
The cost calculations for both are based on very different criteria, hence the differences between them.
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