Building material prices surge by 19% amid home improvement boom, according to Checkatrade

The UK is facing a dramatic surge in home improvement costs, with building expenses rising by 19% in the last quarter alone, according to the inaugural Checkatrade Home Improvement Index.

Based on data from over 10 million tradesperson jobs, this quarterly report offers an overview of the industry, shining a light on escalating costs, growing demand, and notable regional trends.

Here we take a look at the latest updates and statistics to see how it might affect your project and how much it costs to build a house.

Building material prices soar as demand holds steady

The average cost of a building job has skyrocketed to £12,634, up from £10,626 in the previous quarter, driven by rising material and labour expenses.

Despite these increases, consumer demand remains resilient, with a slight 1% rise in job volume between Q2 and Q3 2024. The data shows that cost hikes are affecting a wide range of services:

• Kitchen fitting costs rose by 12%, averaging £7,376.
• Insulation installation surged 20% to £4,634.
• Plastering saw a 16% increase, reaching £2,343 per job.

Smaller handyman tasks experienced the steepest rise, up 25% to £563.

Winter preparations and seasonal trends

As temperatures drop and homeowners have seen their first glimpses of snow, Checkdatrade reveal homeowners are prioritising winter readiness.

Certain renovations saw a significant rise in demand, such as:

• Chimney sweeping saw a staggering 211% increase in demand, alongside a 42% rise in fireplace-related work.
• Home security enhancements grew by 14%, with spending per job jumping 41% to £1,389.
• Interior design projects increased by 131%, while painting and decorating saw a 12% uptick.

Regional hotspots and consumer preferences

Brighton retained its crown as the UK’s top home improvement hotspot, followed by Guildford and Portsmouth, according to Checkatrade.

Meanwhile, Southend-on-Sea, Redhill, and Bournemouth boasted the highest-rated tradespeople, with an average score of 9.86.

At the other end of the spectrum, Southall, Preston, and Manchester lagged behind in customer satisfaction.

Cement production slumps, bricks boom amid mixed trends for key materials

Cement and clinker production in the UK have faced significant declines, with cement output dropping by 8.4% in 2023 to 7.7 million tonnes and clinker falling by 11.2% to 6.4 million tonnes, according to the government's Building Materials and Components Statistics.

Meanwhile, the sand and gravel market shows a fluctuating pattern. While sales rose by 1.9% in Q3 2024 compared to Q2, year-on-year figures reveal a 5.2% drop, part of a broader decline since 2022.

Ready-mixed concrete sales mirror this trend, falling 22.8% in Q2 2024 year-on-year, continuing a steady decline since 2021.

In contrast, the brick market has shown resilience, with September 2024 deliveries increasing by 14.7% compared to the previous year, reflecting growth momentum that has persisted since 2013, despite interruptions like the pandemic.

Concrete blocks, however, remain in decline, with September 2024 deliveries down 4% year-on-year, echoing trends seen since 2021.

'Collaborative communication is key for the future’, say construction leaders

The Construction Leadership Council’s Material Supply Chain Group highlights "good levels of product availability" as 2024 closes, with regional sales bolstered by a slight rise in housebuilding activity.

Bricks and roof tiles remain in steady supply, while aerated blocks are under "managed allocated supply", expected to stabilise by year-end.

However, co-chairs John Newcomb, CEO of the Builders Merchants Federation, and Peter Caplehorn, CEO of the Construction Products Association, express concerns about the government’s ambitious housing and infrastructure goals.

They note that "manufacturers have adjusted capacity to match far lower levels of demand", creating potential risks if demand surges in 2025. This is compounded by "the global nature of the construction supply chain", which has seen closures, skill losses, and low stock levels due to worldwide demand declines.

The Group is investigating UK manufacturing capacity and assessing its ability to scale for "300,000 new homes a year" while emphasising the importance of "collaborative, ongoing communication throughout the whole supply chain" for sustainable industry growth. While growth may not materialise until late 2025, the Group urges industry stakeholders to "plan in advance, work closely with your supply chain, and communicate your requirements early."