Thanks to City AM for sharing my thoughts on a key driver of house prices in the coming years.  

Construction projects are suffering from a barrage of issues. In the last 18 months, lockdown has inspired a huge rise in homeowners’ desire to upgrade their surroundings through refurbishments and extensions. Meanwhile, Brexit- and Covid-related supply issues, labour shortages and pressure on logistics and deliveries have limited what is available.

The result has been severe inflation in construction, and shortages of crucial materials such as glass, and crucial parts of the labour force such as roofers. It’s not an easy time for those in charge of building projects of any scale, from a simple refurbishment to larger multi-unit development schemes. The combined forces of growing demand and short supply have created unanticipated delays in even the best-planned projects.  

Going forward, further cost increases are likely in the short term, since the market will price in current demand and supply dynamics. The hope is that alongside this, supply chain issues will ease off so that developments can be completed on time, albeit at a likely higher budget.  

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