Price rises ‘could drive consumers to hire rogue builders’
A THIRD of small building firms say that soaring material prices are squeezing their margins and almost a quarter have had to pass price increases on to consumers, according to the Federation of Master Builders (FMB).
The FMB said that construction SMEs (small and mediumsized enterprises) have reported a range of material price increases since the depreciation of sterling following the EU referendum in June 2016.
A new FMB study found that 85 per cent of builders think material price rises could drive consumers to hire rogue traders in an effort to save money on their building projects.
Almost one quarter (22 per cent) have been forced to pass material price increases on to their clients, making projects more expensive for consumers, the survey said.
Brian Berry, the 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.
“A third of builders report that these price increases are eating into their already razor-thin margins – and this on top of increased wages and salaries stemming from long-term construction skills shortages.
“Furthermore, one in 10 builders say that they’ve actually made losses on projects, due to material price increases.”