The latest report from the Department for Business and Trade and BCIS indicates that construction material prices for all work have declined slightly by 0.1% over the 12 months leading to December 2024. Following a previous trend of rising costs, this signifies a significant shift in the market.
When examining specific sectors, new housing experienced a 1.3% increase in prices, while repair and maintenance costs rose by 1.0%. In contrast, other new work categories saw a more notable decline, with prices decreasing by 1.4% during the same period.
Up until October 2024, the overall index for all work recorded 17 consecutive months of decreasing annual movement, with no change reported in the 12 months leading to November 2024. Despite a general cooling in material cost inflation compared to recent years, price fluctuations continue to vary significantly across different materials and trades.
The most substantial annual price increase was noted in other builders’ ironmongery, which surged by 9.5%, accompanied by a remarkable monthly jump of 8.4%. Other notable increases were observed in precast concrete and aqueous paint. Conversely, fabricated structural steel was among the materials that experienced the greatest price decreases compared to December 2023.
In addition to ironmongery, significant monthly price changes were recorded in materials such as gravel, sand, clays, kaolin, builders’ woodwork, and steel concrete rebar, which saw declines of 1.9%, 1.8%, and 1.1%, respectively.
The report also highlighted trends in concrete block deliveries, which increased by 27. 4% year- on- year as of December 2024, although there was a monthly decrease of 2.4%. Similarly, brick deliveries rose by 9.1% over the same year but observed a slight decrease of 0.2% when compared to November 2024.
As the construction industry continues to navigate these changes, understanding the dynamics of material prices will be crucial for decision-making and budgeting in future projects.
