Prices for construction materials have soared since the UK voted to leave the European Union, according to research by the Federation of Master Builders (FMB).
Responses to an FMB survey indicated that the fall in the value of the pound since June last year has caused a significant increase in material prices.
Office for National Statistics (ONS) figures indicate that prices have been rising since 2010, but the dramatic fall in the value of the pound following the referendum could conceivable have a dramatic effect on construction materials. A similar survey by the Engineering Employers’ Federation in January had similar results.
85% of builders who responded to the survey think material prices could drive customers to hire rogue traders to save money. A third of small- and medium-sized enterprises said they had had their margins squeezed, while 22% said they’d had to pass price increases onto clients.
Over one in ten builders reported making losses on their projects due to the price increases.
Brian Berry, chief executive of the FMB, said: “Material price increases have left builders under severe pressure. This 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.”