'Plan early' - homebuilders warned building costs are set to rise 12% by 2030

The latest forecast from the Building Cost Information Service (BCIS) indicates that building costs are likely to increase significantly, by 12% over the next five years. This increase is attributed to rising labor costs, with forecasts suggesting an 18% rise in the Labour Cost Index by 2030, as well as materials costs that are expected to grow by 15%. Economic stagnation and inflation enhance the challenges faced by homebuilders and renovators, prompting them to prepare for fluctuating market conditions ahead.

Dr David Crosthwaite, chief economist at BCIS, warns that 2025 could be another difficult year for the construction industry due to economic stagnation and inflationary pressures."Construction is facing a tough year ahead," Crosthwaite explains. "With economic growth stagnating and inflation picking up again, stagflation is becoming a real possibility this year."

Read at Homebuilding & Renovating