Nearly two-thirds of builders have had to pass skip price increases on to clients and a fifth have had to pass on diesel price rises, making home improvement projects more expensive for home owners, according to new research by the Federation of Master Builders (FMB).
The research found that three quarters of builders have said the price of skips has risen over the past 12 months, and that the average cost of an eight yard skip has gone up by £24 over the past year, meaning an additional cost of £360 for the average extension.
Nearly two-thirds of builders have had to pass skip price increases on to clients, making home improvement projects more expensive for home owners, while three quarters of builders said that skip price rises have squeezed their margins.
The widely-reported hike in diesel prices is also starting to bite, and nearly half of construction SMEs have made lower margins on projects. Nearly a fifth (17 percent) have been forced to raise the prices they charge clients, while more than one-in-ten have had to turn down jobs they would have normally accepted as they are too far away. Ten percent have taken steps to reduce vehicle use.
Commenting on the research, Brian Berry, Chief Executive of the FMB, said: “The increase in the price of skips and diesel is bad news for builders and home owners alike. Nearly two-thirds of builders have had to pass skip price increases on to clients and a fifth have had to pass on diesel price rises.
“This has made home improvement projects more expensive for home owners.”
He added: “We are advising builders to price jobs and draft contracts with this plethora of price rises in mind to avoid a further squeeze on already razor thin margins.”