You are in > manchester.com  > News > Home improvement costs 'soar'

Finance

Home improvement costs 'soar'

03/06/2008

Rising property costs have spread to home improvements, according to the Royal Institution of Chartered Surveyors (Rics).

Rics said on Tuesday the cost of carrying out home improvements had increased by 20 per cent since 2006.

The rising costs of transport and raw materials and a shortage of tradesmen are the main drivers pushing up the costs according to the organisation's Building Cost Information Service (BCIS).

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.

With half of the estimated one million British based Poles having already left the UK, competition for labour is pushing up costs, finds the BCIS.

"The current downturn in the housing market is forcing some homeowners to become more creative in meeting their accommodation needs," said BCIS executive director, Joe Martin.

"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."

The increase in costs is likely to be all the more acute for homeowners, as wages have increased by only right per cent over the same period.

The upward trend in oil prices is continuing to fuel the rising cost of transport, with forecasters predicting oil to rise to $200 US (£100) per barrel in the next few years, some experts are predicting this to have more impact on economies than the current credit crunch crisis.

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, commodity prices will remain high for years to come, finds the BCIS.

This is no more evident than in the various trades where the cost of materials has pushed up the overall costs.

For example, roofing costs have risen by 26 per cent, plumbing and electric work by 22 per cent and painting has risen by 17 per cent, all outstripping inflation over the past two years.

"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," said Mr Martin.

"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."