Beat the building materials price increases
33% of builders and property investors taking on renovation jobs, report that soaring building materials prices are squeezing their margins. Construction SMEs have reported a range of material price increases since the depreciation of sterling following the EU referendum in June 2016.A survey of builders and property investors when asked which materials have increased the most the results were as follows: 1) Timber 2) Insulation 3) Bricks 4) Blocks 5) Windows 6) Plasterboard / slate (joint sixth) 7) Boilers and radiators 8) Porcelain products The impact of these material price hikes have been wide-ranging and have left 85% of builders fearing that material price increases could drive consumers to hire rogue traders in an effort to save money on their building projects. Some 32% of builders have had their margins squeezed as a result of higher material costs. This partly explains why almost a quarter - 22% - have been forced to pass material price increases, making projects more expensive for investors. Yet more than one in ten builders report making losses on their building projects due to material price increases. Material price increases have left builders under severe pressure. Research shows that following the fall in the exchange rate, timber is the material that the majority of builders say has increased most in price. But the problem doesn’t end there – everything from insulation to windows to bricks and blocks are soaring in price. A third of builders report that these price increases are eating into their already razor-thin margins – and this on top of increased wages and salaries stemming from long-term construction skills shortages. Furthermore, one in ten builders say that they’ve actually made losses on projects due to material price increases – this is most likely to happen when a particular product or material jumps up in price mid-project when then builder has already quoted for the work. Good news for Property Investor Reward club members, our deal with Jewson locks in prices and uses the power of the crowd to deliver price savings over builders prices. Our advice is beware that your builder has enough reserves to weather the storm of price increases and monitor projects closely to ensure they do not use lower specification materials or cut corners on your project.
Property Investor Reward Club have partnered with Jewson to bring you an exclusive range of products and discounts when you quote our account number INVP036
PIRC is an exclusive membership club for property traders, investors and landlords which gives you immediate access to discounts from all the suppliers you need in your property business. Benefit from EXCLUSIVE rates on everything from building materials to solicitors’ fees. You also earn cash back and rewards with every purchase at PIRC-Card.co.uk. Read the full article