• Nicky Frost

Cost of building new homes in UK accelerating significantly

Research, undertaken by the Centre for Economics and Business Research (CEBR) for the housing association trade body National Housing Federation (NHF), has revealed that the cost of building new homes was rising by 12.3% a year in June 2022, well above the general CPI rate, the government’s preferred inflation measure, which hit 9.4% that month.

Cost of building new homes increases
Cost of building new homes increases

CEBR has analysed inflation trends for the major costs housing associations face.

The analysis shows that in significant areas – including construction costs and repairs and maintenance materials – costs are increasing more than headline inflation rates.