BCIS Private Housing Construction Price Index (PHCPI) increased by 3.3% in 3Q2021 and by 10.6% between 3Q 2020 and 3Q 2021. At the same time, private housing construction output dropped by 3.5% in 3Q2021 compared with the 2Q2021 and showed and an increase of 6.3% on an annual basis.
Costs are expected to rise by a further 2% in 4Q2021 compared to 3Q2021.
The majority of respondents to the survey (95%) reported a change in costs, with the reasons as shown below:
Productivity continues to increase, with a range between 80% and 100% and a reported average of 95% of pre-COVID-19 levels as at September 2021.
When asked about productivity once revised working practices are established, respondents expect productivity to range between 80% and 100%, at an average of 97% (as a % of pre-COVID-19).
Supply chain delays as well as materials’ cost and availability continue to be among the key challenges that are expected to persist into and throughout 2022.
Part L was frequently mentioned by survey respondents this time as a key regulation that could impact operations next year. One respondent noted: “During next year the introduction of the revised Building Regs Part L will make a significant change to costs and design.”
We would like to thank respondents to this survey for their contribution.
The PHCPI is based on housebuilders’ costs in constructing a standard house. The index is adjusted for changes in specification and reflects only the movement in the underlying direct costs to housebuilders.
The BCIS PHCPI is published in the BCIS Online service.