Louth house rebuild costs have increased by 8% over the past year

The latest House Rebuilding Guide published by the Society of Chartered Surveyors Ireland (SCSI) shows that average re-build costs in Louth, which includes demolition and site clearance, have increased by an average of 8% over the past 12 months. This is the same rate of increase recorded last year but well down on the 12% increase recorded in 2023.  

Nationally average re-build costs have increased by an average of 7% over the past 12 months, up 1% on last year but again down on the 12% national increase recorded in 2023. The SCSI’s House Rebuilding Guide, which has been published annually since 1989, helps homeowners to estimate the minimum rebuilding costs of their home for house insurance purposes. 

While welcoming the stabilisation in the rate of increase, SCSI Vice President Tomás Kelly, said the level of increase in rebuild costs is above that seen generally in the construction sector as it is more heavily impacted by labour costs and availability.  

“The rates received in our survey of quantity surveying members, and in turn the rate of annual inflation determined, is a factor of the level of demand for contractors operating in this sector of the construction industry. Rebuilding work faces stiff competition from other construction work, including new residential construction, and if demand for that increases in an area, this reduces capacity and potentially increases the costs of such reinstatement work.”

“In terms of the main cost drivers, the introduction of two new levies, the Landfill Levy from 1 September 2024 and the Recovery Levy from 1 January 2025, are additional costs for demolition works in particular and construction works more generally.”   

This year’s Guide shows – see Figure 1 – that increases in rebuild costs range from 3% and 5% in Cork and Dublin, respectively, to 9% in the North West. Although the North West recorded the highest percentage increase, the capital continues to have the highest rebuild costs while the North West has the lowest. 

Limerick and Galway both recorded rebuild cost increases of 7% while Waterford and Louth / the North East recorded increases of 8%.

Mr Kelly says the main reason for regional variations is differences in demand for builders and tradespeople. 

“The rate of inflation in the reinstatement costs can vary across regions for a variety of reasons but is principally driven by the level of activity in a region at a given time. For example the North East is experiencing significant development and its proximity to the Greater Dublin Area is a factor that sees a continuing narrowing of the cost differential in rates.” 

“Again, this year, in the North West we are seeing the highest rate of increase. Whilst it remains the lowest rebuild cost region, the gap is reducing, and it is currently about 6% below the average of the regional locations. " 

While the rate of price increases has moderated in Dublin, it still has the highest rebuild costs, while the North-West has the lowest price but the highest rate of increase.    

 According to these figures, the minimum base cost of rebuilding a typical 3-bed semi, one of the most common house types in the country, is €331,340 in Dublin (98sqm x €3,381) while the minimum base cost of rebuilding a similar house in the North West, is €270,090 (98sqm x €2,756) – a difference of €61,250. In Louth / the North East the figure is €293,220.

The SCSI is urging Louth homeowners to take the time to ascertain their minimum base cost reinstatement based on house type and location and apply any additional costs based on the specifics of their house.   

“Homeowners need to ensure their house is adequately insured so that in the event of a total or partial loss situation ie a fire, they are covered under their insurance policy when reinstating or rebuilding. For example, rebuild costs for a 3-bed-semi have increased over the past 12 months from over €8,000 to over €22,000 depending on where you live. In Louth / the North East its very close to the upper end at €21,760.

 “While these increases are significant it does not necessarily mean premiums will increase on a pro-rata basis and homeowners are advised to shop around when seeking insurance cover for their homes. It’s really important for homeowners to put aside ten minutes to use the SCSI House Rebuild Calculator, which is free – to get an estimate minimum reinstatement figure and ensure their home insurance is up to date.”

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“If it’s not they need to contact their home insurer. Some insurers may auto adjust insurance policies annually, so homeowners need to satisfy themselves that any quotes they receive are aligned with current rebuild rates.” Mr Kelly said.  

The SCSI points out that the rebuild figures are based on estate type houses and people with one-off homes or period properties are advised to contact their local chartered surveyor. A list of chartered quantity and building surveyors who carry out these assessments is also available on the SCSI website.