Material prices are soaring, says FMB31 July 2017
A third of small building firms say that soaring material prices are squeezing their margins and almost a quarter have had to pass these price increases onto consumers, according to research by the Federation of Master Builders (FMB).
A range of price increases have been reported since the depreciation of sterling following the EU referendum in June 2016, and the impact has been wide-ranging. “
Timber is the material that the majority of builders say has increased most, but everything from insulation to windows to bricks and blocks are soaring in price,” Brian Berry, chief executive of the FMB.
“One in ten builders say that they’ve actually made losses on projects due to material price increases.”
“The increases mean that building projects now cost significantly more than this time last year. Consumers might decide not to commission that loft conversion after all. Or worse still, 85% of builders believe that home owners will be tempted to hire rogue traders who are quoting a lower price than a professional firm such as those belonging to the FMB. If that’s the case, material price rises could lead to a flurry of botched jobs and distressed consumers.”