Will prices go down?

Redwino222

I am about to embark on an extension project.  A year ago my total budget of £50k would have easily covered it.  Looks like £70k plus now!

I really want to do the work but people keep telling me I am mad to do it at such an expensive time.  BUT will prices go back down??  It could take years - years that I would be enjoying my new kitchen!

grateful for wise words 

FreeBear

You may see timber prices falling slightly in the foreseeable future, but not the rest of the materials. All the time energy prices are high, it is going to drive up the cost of bricks, cement, plaster, steel, & plastics.

If you were budgeting £50K a year ago, £75K will be realistic today. Next year, give yourself another £25K as a contingency.

Redwino222

Thank you!!

i could kick myself for not doing it earlier - but I only moved into this house in August and I wanted to live with it for a while to see exactly what I wanted!

I think I will budget £80k to include some contingency.  

Redwino222

I spoke to my builder who says demand isn’t falling - its rising!

I had to wait two months for the architect and structural engineer.  Prices aren’t putting people off one little bit.

DB1904

Redwino222 said:

Thank you!!

i could kick myself for not doing it earlier - but I only moved into this house in August and I wanted to live with it for a while to see exactly what I wanted!

I think I will budget £80k to include some contingency.  

You won't get a decent builder to start this year so as free bear said make it 100k.

Redwino222

Luckily I have the builder lined up - family friend.  I booked him in ten months ago!!  But have only get round to deciding what I want now.

and he is very good - built my parents double sort ex ruin a few years ago - amazing job.  So one less thing to worry about!

Rosa_Damascena

Get on to it asap, there is no sense in delaying.

Even if house prices drop, they will recover eventually and you will have had the enjoyment of living in a home that you (part) designed to your own taste.

Redwino222

Thank you!  It’s daunting when the cost of the project has increased so much.  And I am worried I will look at it at the end and think £80k - for that.  I could build a house on that budget😂. 

but it’s just a case of recalibrate going my expectations. 

Slinky

We had a load of floor insulation delivered to us on Friday. Builder says it's going up 30% in cost on Tuesday.

FreeBear

Slinky said: We had a load of floor insulation delivered to us on Friday. Builder says it's going up 30% in cost on Tuesday.

Bought a load of 25mm Kingspan last month - £15 per sheet, now £18. If it goes to £23, I just hope I don't need any more.

The windows & door I ordered a few weeks back have gone up 10% - Just as well I got my order in before the increase.

Plasterboard is up 10% next month, and I'm going to need a stack of that soon...

Eldi_Dos

When projects that involved large amounts of copper used to be awarded, companies tendered on a notional price of copper and when contract was awarded they then put in order for X amount of copper and contract price was based on rate at London Metals Market (Exchange) that day. If inflation is going to get worse traders might have to tender using similar system.
There will be people on here who remember fuel surcharges when you did not know the final price of your holiday till just a few weeks before you went.