The cost of rebuilding a house has tripled over the past 30 years. The ABI/BCIS House Rebuilding Cost Index (HRCI) reached 300 in May 2017 compared to its base September 1988 = 100.
How does this compare with other measures of inflation over a similar period?
- ABI/BCIS House Rebuilding Cost Index + 300%
- House Prices + 434%*
- Average Weekly Earnings + 295%
- Retail Prices Index + 252%
- Building Tender Prices + 223%
- General Building Costs + 287%
* Based on latest available figure for 1Q2016
HRCI vs other measures of inflation
The graph reveals a fascinating picture of the changes in house rebuilding costs in the UK over time.
Between 1988 to 2017, there was a steady increase in the ABI/BCIS House Rebuilding Cost Index in line with the Average Weekly Earnings Index, the General Building Cost Index and the Retail Prices Index.Â In contrast, the BCIS All-in TPI Index fell in the early 1990s before experiencing a steady increase until 2009 when it declined briefly before returning to growth from 2010.
The Mix Adjusted House Price Index stagnated through the 1990s followed by a sharp increase from 1998 until 2007 when prices fell before returning to growth from 2011 to 2016.
[button type="btn-primary" text="Read More News" link="http://www.metropolis-surveyors.com/latest-news/"]
Keep up to date on all of our latest news!