House rebuilding costs in North East increase by 19% over past 12 months

The latest House Rebuilding Guide published by the Society of Chartered Surveyors Ireland (SCSI) shows that in the North-East region, which includes counties Louth, Monaghan, Cavan and Longford. average re-build costs have increased by of 19% over the past 12 months.  

The SCSI House Rebuilding Guide, which is used by homeowners to calculate the rebuilding costs of their home for insurance purposes, shows that the national average re-build costs have increased by an average of 21% over the past 12 months. The SCSI said it was important to note that the specifications and designs used for the six house types had been updated this year and that as a result not all the reported increases could be attributed to construction inflation.

Kevin Brady, Chair of the Quantity Surveyors Professional Group in the SCSI said rebuild costs had increased due to supply chain difficulties and increases in the price of building materials. “Although pricing pressures on certain materials such as timber, plasterboard and insulation have eased slightly, rising fuel and energy costs are continuing to affect the supply chain. This is a direct result of the war in Ukraine and is leading to a sustained increase in the price of energy intensive materials such as concrete, aggregates (infill material), steel and paint. Coupled with these material price increases, ongoing labour shortages show no sign of abating and are also pushing up rebuild costs.”

According to these figures the minimum base cost of rebuilding a 3-bed semi in the North-East, is €224K (98 x €2,285) an increase of €42K over the 17 months since April 2021. The SCSI is urging homeowners to take the time to ascertain the correct reinstatement value of their home for insurance purposes. Mr Brady said the last rebuild guide had been published 17 months ago and since then rebuild costs had increased by an average of 29%. He said this underlined the need for homeowners to review their house insurance.

“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. Rebuild costs for a 3-bed-semi the most common house type in the country have increased from between €42,000 to €56,000 depending on where you live.”

“While these increases are considerable it does not necessarily mean the premium will increase significantly and consumers should shop around when seeking insurance cover for their homes. The really important takeaway from this for homeowners is to set aside some time – it should only take five or ten minutes if you use the SCSI Home Rebuild Calculator, which is free – to get an accurate reinstatement figure and ensure your home insurance is up to date. If it’s not you need to contact your home insurer.”

The SCSI points out that the rebuild figures are based on average costs in the North-East covering counties Louth, Monaghan, Cavan and Longford. It advises homeowners to study the tables carefully and choose the rebuild costs which they believe are most appropriate for their location and house type. The costs quoted are for estate style houses and people with one-off homes or period properties are advised to contact their local chartered surveyor.

The President of the SCSI Kevin James said that homeowners who are not adequately insured may be penalised under their policy by having to pay a certain proportion of the reinstatement costs. “Where, the insured sum is only 75% of the total reinstatement cost, you will only receive 75% of the agreed cost of reinstatement, whether the claim is made for partial replacement or total loss.

"For example, in the case of a house insured for €270,000, where the total reinstatement cost was €360,000, the insured party would receive only €270,000 to reinstate the house in the event of the total loss. In that situation the insured party would be obliged to provide the balance of €90,000. Similarly, if there is a partial loss, which costs €60,000 to repair, the insured party would only receive €45,000 and would have to provide the balance of €15,000. This is something many homeowners may not be aware of.”

“It’s also important that homeowners reassess their cover to take account of any changes such as home office extensions or garden offices. These have become increasingly popular with more people now working from home, but they need to be included in the house insurance.”

A House Rebuilding Calculator and the 2022 Guide to House Rebuilding Costs is available free of charge at www.scsi.ie/consumer/build/ house-rebuild-calculator/.