House rebuild costs in Louth have increased by average of 8%
Last year’s national average increase was 12%
The latest House Rebuilding Guide published by the Society of Chartered Surveyors Ireland (SCSI) shows that in the North East region, which includes Louth, house rebuild costs increased by 8%, the second highest rate of increase in the country.
The national average re-build costs, which include demolition and site clearance, have increased by an average of 6.2% over the past 12 months.
The SCSI’s House Rebuilding Guide, which has been published annually since 1989, is used by homeowners to calculate the rebuilding costs of their home for house insurance purposes.
While welcoming a moderation in the rate of increase – last year’s national average increase was 12% - Chartered Quantity Surveyor Kevin Brady said labour costs and skills shortages are continuing to drive rebuild costs.
“Due to covid, the war in Ukraine, high energy prices and supply chain issues the construction market experienced significant volatility over the last five years. The resolution of some shortages and supply chain issues has led to the cost of some materials moderating – the price of insulation, timber and paint for example have generally settled down.
“However, we are continuing to see increased costs in labour intensive tasks such as demolition and disposal of waste material while skill shortages across plumbing, electrical, heating and other trades are also contributing to increased costs.
“SCSI members are saying the demand for builders throughout the country remains at an all-time high and this is also a contributory factor to the increases we are seeing in this year’s figures. The introduction of the concrete levy has increased the cost of pre-cast and pouring concrete while the introduction of two new levies on waste and disposal in September is likely to increase costs going forward.”
He continued: “The North East is experiencing significant development and the increased pressure on labour and availability of builders has, we believe resulted in an increase in rates in this region also.”