U.K. housebuilders face shortages and cost hikes
27.01.2021, 10:43

U.K. housebuilders face shortages and cost hikes

Bloomberg reports that U.K. housebuilders are facing a shortage of construction materials and mounting costs as disruptions caused by the coronavirus and Brexit start weighing on the industry.

Escalating prices for shipping and delays at some British ports are having a major impact amid high demand, according to trade body Builders Merchants Federation, which says its members manufacture 76% of building products in the U.K. The price of timber has soared by an average 20% and there’s evidence of limited availability of roofing materials, it said.

“The longer the issue goes on, then the more the larger house builders will be impacted,” said BMF Chief Executive Officer John Newcomb. Smaller builders have felt the brunt so far, but “we are doing everything we can to try and improve the situation and increase supplies to meet current demand.”

Persimmon Plc, the U.K.’s largest housebuilder, warned earlier this month of uncertainties relating to disruptions from the pandemic and the broader impact of the free trade agreement between the European Union and the U.K., despite the “resilient demand” for new homes.

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