How much would rebuilding our properties in full actually cost?
labour involved in rebuilding – add up to the insurance value.
Most of these cost similar amounts wherever you live – big builders’ merchants have the same catalogue prices for all their outlets.
The only substantial cost difference is the workforce to restore the property – labour tends to be more expensive in London and the South East than in most other parts of the country.
The gap between the rebuild value and the estate agency estimate is due to how desirable the area is – that’s access to schools, hospitals, transport, countryside, shops and all the other items you look for when deciding where to buy – and the value of land, which can’t be destroyed.
To use the title of that TV series, it’s “Location, Location and Location”.
Direct Line says: “The public has little to no idea of rebuild costs, estimating it would cost an average £226,750 to restore a threebedroom house – 38% more than reality.”