Rising material costs cuts consumer spending

One in 10 UK homeowners had to cancel home renovation jobs due to the rising cost of raw materials.

Research carried out by lighting supplier Ultra LEDs discovered the cost of these materials is expected to have more than trebled in 2022 and these significant supply chain issues will not only affect tradespeople, but homeowners too.

According to the FMB’s State of Trade Survey, nearly one in five housebuilders (19%) reported an increase in their workload, with 95% surveyed saying it was a direct result of the rise in cost of materials. Likewise, a third of builders (32%) reported an increased workload in the repair, maintenance and improvement (RMI) sector.

Conversely, there are increasing concerns about sourcing efficient skilled tradespeople due to the labour shortage. Nearly half of builders are struggling to hire bricklayers and 43% are struggling to hire carpenters, meaning homeowners are waiting much longer for kitchens or bathrooms to be installed.

As 74% of tradespeople stated that they’ve been forced to raise their prices in the past quarter, a survey of 500 UK homeowners commissioned by UltraLEDs revealed that one in 10 (11%) have had to cancel home renovations as the tradesperson’s fees have increased.

In addition, of those willing to go ahead with their home renovations, 27% disclosed that the materials price increase has delayed their project, while 24% confessed to increasing their budget in order to have their renovations completed.

Matthew Shaw, head of sales at Ultra LEDs comments: “Price inflation has also seen consumer prices rise at the fastest pace in 30 years in 2022 as motor fuels, the housing market and household energy costs have soared. These insights have highlighted how this exponential growth is putting undue pressure on tradespeople and it is UK homeowners who will undoubtedly be facing higher bills for renovation or building work.”

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