The rising cost of renovations

Since the start of the pandemic, we have fundamentally changed the way we use our living space according to research by Rated People. In 2021, half (49%) of UK residents made improvements to their homes and demand for tradespeople increased by 32%.

When compared to the start of the pandemic in 2020, demand for home improvement has gone up by a massive 50%. But Covid and Brexit have also presented challenges, like material supply problems, cost increases and workforce shortages, and these have impacted both homeowners and tradespeople across the country.

Almost nine in 10 tradespeople (89%) say their costs increased in 2021, 84% experienced materials supply issues and just under half (44%) had workforce shortages. How much will prices go up for renovations and home improvements this year, and which types of projects are set to increase in price the most?

SOARING COST OF HOME IMPROVEMENT

Last year, prices for home improvement work increased by 15% on average for homeowners. This year, the price of some renovation projects could increase by 40%.

Labour and materials for a bathroom renovation are expected to cost around £5,726 on average in 2022, which is 22% higher than 2021, and a huge 40% more than in 2020. The price of both loft conversions and kitchen renovations are set to increase by 25% compared to 2020, and an extension will be 23% more expensive than just two years ago.

According to the survey, builders, heating engineers, plasterers and carpenters are the most likely to increase in price this year – 97% of builders, 91% of heating engineers, 89% of plasterers and 89% of carpenters will be upping their prices.

STRUGGLING TO KEEP UP WITH DEMAND

In addition to increasing prices, homeowners also found it hard to get hold of tradespeople that were available to do the work in 2021. London was the worst affected, with 54% of homeowners encountering availability challenges.

Read the full report here.