A new research conducted by the Federation of Master Builders (FMB), UK, has found out that the prices of house building materials have increased significantly in the wake of the depreciation of the sterling. Consequently, the home ownership cost is expected to go up in the long-term in the UK.
The FMB noted that 70 per cent of the builders in the UK reported an increase in the prices of materials, such as, timber and Spanish slate, in double digits. The UK imports nearly a quarter of all its building construction materials, and the weaker Pound is adversely affecting the builders. Any price fluctuation could negatively impact the house prices, as developers tend to pass on the burden to home-buyers.
The UK labour market is already grappling with issues, as skilled labour comes at a higher cost. Now, the burden of higher material cost is a cause for concern among the builders. In view of these, home owners, who have already booked their houses, will be forced to become selective with their preference for materials.
Some of the mid and small time builders will feel the heat more because they pick materials from the market in real-time. They may have not anticipated such sharp fluctuations. This will be one tricky issue for the builders in days to come.
70% of UK builders have seen an increase in material prices due to the depreciation of the pound, new research from the Federation of Master Builders (FMB) has revealed.