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June 12, 2008

Competition for tradesmen is fierce as DIY increases

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by Kay Murchie

Competition for tradesmen is fierce as DIY increases

A recent report by the Royal Institution of Chartered Surveyors (Rics) revealed that more British homeowners are looking to make improvements to their home.

As property prices are falling, current homeowners are not moving but are upgrading their homes.

As a result of this, competition for tradesmen and construction labour is fierce. BuildStore, a specialist at the core of the self build and renovation market in the UK, has published the results of a survey of labour costs for the UK, which reveal some significant differences in costs.

The survey, conducted by BuildStore’s National Self Build & Renovation Centre reveals some disparity in the cost of tradesmen across the UK, proving that it is all about location.

500 contractors were polled in the UK to get average day rates for 8 of the most popular trades: groundworker, bricklayer, roofer, carpenter, plumber, electrician, plasterer and decorator and the results show dramatic differences across the regions.

The UK average day rate for plumbers was £227, however, across the country, it differed from £170 in the North West to £295 in London.

For bricklayers, the average UK day rate was £173, but in the North East, the average cost was £205 and £150 per day in the North West.

The housing slowdown has meant that property developers have begun to stall work on their residential developments so tradesmen are looking for extra ways of earning income.

Property developers are taking advantage of falling house prices and snapping up renovation bargains so tradesmen are spoilt for choice.

This means competitive pricing to secure contracts, while others are increasing their rates to capitalise on the growing number of home improvers and developers.

Simon Comba, of West Park Project Management, believes that costs could continue to increase, because demand is still high.

He added that there are still a lot of other commercial, industrial and leisure developments and a lot of work to be done. Although prices have generally been growing, they will have to remain competitive.

We have witnessed a steady growth in the cost of labour, as much as 25% in the last 12 months. However, because major developers tend to use national contractors and labourers, individuals, such as self builders, renovators and small private development firms have their pick of local labour and smaller firms, where they should find prices to be more competitive, concluded Mr Comba.


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