Home builders and renovators are having to deal with a rise in the cost of building materials and some are delaying or cancelling their plans as costs spiral. The government’s building materials statistics for August revealed a 24.1% increase for ‘all work’ in July compared to one year ago, while year-on-year repair and maintenance costs rose by 21.9%.
One in 10 homeowners have cancelled plans for renovating a house due to the rising cost of raw materials, according to research by lighting supplier Ultra LEDs.
But there are ways to keep costs down and complete that renovation on time. Michael Holmes, property spokesperson for the Homebuilding & Renovating Shows has some advice to help home builders and renovators cope with the rising costs of materials:
Shop around
Builder’s merchants have strengths in particular product categories, so some are cheaper for timber, others for cement or plaster, so always get prices from two or three suppliers and compare. Independent merchants often have more flexibility on discounts at branch level than the majors – so it’s worth negotiation. The big DIY chains sometimes offer basics like cement at the lowest price as a loss leader to get the trades in store, but the downside is you will have to collect.
Order in advance
Prices are going up all the time, so securing prices now and placing an order can lock in a discount. You may have to take delivery and store on site, but sometimes a merchant will allow you to take delivery over time providing you pay now.
Use Your Buying Power
If you are building a large extension or a whole house, you will be spending a lot of money so use your buying power to secure a good discount. Take your plans with you and ask the merchant to do a take-off and price for all the key components. You can then shop around and cherry pick the best prices.
Direct delivery
If you bulk buy certain items such as concrete blocks, or insulation, you may be able to make up a full load delivered direct from the factory. This will reduce haulage costs and the cost of offloading and storage. Shortening the supply chain by taking a delivery direct from the factory can reduce costs significantly.
Use reclaimed materials
Some materials from salvage yards are more expensive than new, but others, such as rooftiles, can be less expensive and have the added benefit of instant character. Using second hand materials is also a sustainable option. Be careful to make sure the quantity you require is available, as it may be difficult to find more of exactly the same product if you run short.
Avoid wastage
Wastage costs money and so measuring accurately and keeping it down to a minimum is a good way to reduce the cost of materials. It can prove a false economy though, if you cut things too tight and end up having to place a second order, this can double delivery costs or, worse still, you may find the product is discontinued.
Buy end of line
Buying last year’s model of white goods from a discount appliance store can save a lot of money. What was the latest product 12 months ago may now be discontinued but it will still have a 12 month guarantee and spares will be available. End of range tiles, or ex-display kitchens or sanitaryware can also be a good source of bargains.
Collect items yourself
Delivery charges can be disproportionately high, especially for some smaller items, so if you have access to a van, and you have the time, arrange to go and collect items yourself. Make sure it stacks up though by taking distance and fuel costs into account and the practicality of offloading once you get to your home or site. Bulk items are best delivered from the supplier.
Buy seconds
Some manufacturers will sell of their seconds at a discounted rate. Brick manufacturers for instance often have batches of bricks that were over fired, or batches produced as a new product trial that never launched and these can be significantly less expensive. There are specialist retailers offering seconds from insulation manufacturers – boards that are slightly damaged or imperfect but will still perform as required.
Make sure you pay the right VAT rate
VAT on materials you buy yourself will always be standard rated for VAT, however, if you are converting a building into a new home, or building a new home from scratch, you can recover the VAT paid on eligible materials at the end of the project under VAT Notice 413. If your project involves renovating a house that has been empty for two years or more, or involves a change in the number of dwelling units (e.g. two flats into one house) then you can save 15% on materials supplied and fitted by a VAT registered contractor by making sure they apply the reduced rate of 5%.
Kitchen units
And there are ways of saving on costs when fitting out a kitchen, according to designer Julia Kendell, known from BBC’s DIY SOS, ITV’s 60 Minute Makeover and a regular speaker at Homebuilding & Renovating Shows.
Julia says: “Vintage, free-standing kitchen units add character and warmth to a kitchen and second-hand or ex-display kitchens can be sourced online and used very successfully to keep costs down when building or renovating a kitchen.”
She adds that if you are renovating an existing kitchen, don’t forget to sell the old units. Sites such as usedkitchenexchange.co.uk and theusedkitchencompany.com will buy as well as sell second-hand units.
Working with your builder
Andy Stevens, Master Builder and regular Homebuilding & Renovating Shows speaker, has some advice on working with your builder as costs continue to rise:
“One bit of advice I would give is try and order as many materials as possible before future rises as I’ve heard they are going to be hefty (bricks could be touching 30%). Work closely with your builder as they will have long term relationships with their suppliers and will get the best rates possible. It is highly unlikely you will get rates close if you walk in off the street without any buying history.
“Another bit of advice is to look at alternative material options. For example, insulation prices have seen some of the highest increases, yet there are alternative options which are cheaper. But you will need to take advice from your builder and building inspector to make sure they achieve the relevant U-values.”
Andy adds that there is a huge shortage of skilled labour in construction which is causing labour rates to go up but he says: “In life, you have to pay for anything that is quality. If the labour price seems too cheap, that is often for a reason. My advice is to save and wait for the builder you want to work with or run the risk of major problems.”
