Building and DIY projects are being put on hold because of a supply shortage of cement, timber, steel and paint while homeowners face a major rise in the cost of renovation projects due to skyrocketing demand.
The Office for National Statistics has projected an increase of up to eight per cent in material prices, as shortages of vital construction materials post-lockdown mean that the industry its biggest price surge in two decades.
For instance, the price of timber has risen by more than 400 per cent over the last year, with copper nearly doubling in price during the same period.
Shipping costs have also increased sharply due to a shortage of empty containers from Covid-related issues and the recovery in global demand post-pandemic.
13 May 2021 | 08:00am
StockMarketWire.com - Home builder Countryside reported a fall in profit as rising costs offset a jump in the revenue amid an ongoing increase in house prices.
For the six months ended 31 March 2021, pre-tax profit fell to £38.8 million from £43.7 million year-on-year, while adjusted revenue increased to £661.0 million from £481.2 million.
Completions were up 14%, driven by a strong increase in private delivery as we completed on homes deferred as a result of Covid-19 from the prior year, the company said.
Private average selling price increased 6% to £389,000.
Looking ahead, the company said the net reservation rate for the last six weeks had been strong at 0.82, with over 90% forward sold across all tenures for the year.
CMA Tells Homebuilders to Stop Onerous Ground Rent Terms msn.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from msn.com Daily Mail and Mail on Sunday newspapers.