DIY disaster as material costs hit roof: Travis Perkins bosses see ‘significant’ price hikes after boom in construction work during lockdown
- The construction merchant said on Sunday that the British were facing ‘significant’ cost increases
- The price of bagged cement is expected to increase by 15 percent and that of particle board by a tenth
- The increases follow a boom in extensions and conversions during lockdowns
- B&Q and Wickes also have supply problems, but have not increased prices so far
The cost of construction works will soar as a shortage of materials reaches crisis point, Britain’s largest builder warned yesterday.
Travis Perkins said the British were facing ‘significant’ cost increases as a result of a boom in lockdown expansions, remodels and landscaping projects.
Customers at the 560 sites have been told they expect the price of bagged cement to increase by 15 percent, particleboard to increase by a tenth and the price of paint to increase by 5 percent.
Some do-it-yourselfers and construction workers have been unable to obtain cement for ‘weeks’, the wait for roof tiles has increased by 20 weeks, and concrete fence post orders can take 16 weeks.
It comes after families have rerouted lockdown savings to construction projects, just as rising home prices are fueling a construction boom.
The cost of construction works will soar as a shortage of materials reaches crisis point, Britain’s largest builder warned yesterday. Travis Perkins said the British faced ‘significant’ cost increases due to a boom in extensions, remodels and landscaping projects in lockdown [Stock image]
B&Q and Wickes also have supply problems, but Travis Perkins is the first to raise prices. It said, “We will continue to work closely with our suppliers to keep price increases to a minimum.”
A spokesperson added, “The market is currently facing significant cost and availability challenges for a number of key commodities.”
The development will fuel inflation fears after the pace of price increases doubled in March on the back of rising gasoline and energy prices.
There are fears that prices will rise as the economy reopens and consumers start spending again, exacerbated by rising wages in some industries.
The supply problems started during the lockdown, with companies struggling to catch up with demand.
The construction boom was fueled by the housing market, which recorded the strongest April sales in 14 years last month.
Last month, industry groups reported that demand for builders is growing at the fastest rate in a decade, putting stocks under enormous pressure.
Larger homebuilders, such as Barratt or Taylor Wimpey, are unlikely to be hit by the shortages, but for smaller builders, it’s “ yet another test, ” according to the Federation of Small Builders.
The National Federation of Builders added that “material prices have increased significantly.”
Customers of Travis Perkins’s 560 stores have been told they expect the price of bagged cement to rise 15 percent, chipboard to rise by a tenth and the price of paint to rise 5 percent. [Stock image]