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Construction Recovery Under Threat From Rising Costs

29th April 2014

Contractors fear construction recovery is under threat from rising building costs and material shortages.

The Federation of Master Builders latest survey has showed increased workloads for the 4th successive quarter, but building costs are rising and material shortages are impacting on construction.

Despite the positive results for enquiries, workloads and employment this could be undermined by the rising prices and costs. Material prices are generally 10% higher with small construction companies highlighting the timber products as being particularly expensive, largely due to the winter storms suffered by the UK.

Additional concerns over the supply of other materials, such as bricks could slow the ability of housebuilders to plug the dhortfall in the housing supply - this at a time when the need for a greater number of new houses is on the rise!