The Construction Leadership Council warned last year of demand far outstripping the supply of essential on-site materials such as cement, electrical components, paints, sealants, coatings and adhesives, so putting prices up substantially. Over the last three months, the CLC have warned that inflation has further increased by 10-15% on the prices of materials.
At the same time, the Office for National Statistics confirmed that between December 2020 and December 2021 the price for all construction work increase by 21.5%.
And amid rising inflation, living costs and the crisis in Ukraine, the Federation of Master Builders has identified new challenges in sourcing further construction-related products such as timber, steel, bricks, roof tiles, aluminium, copper and bitumen.
As a result, some developers will need to ensure more flexibility in their project finance to accommodate delays.