Cost of rebuilding a house triples

10-7-2017

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

cost-rebuilding-house-triples

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.  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/"]   Source: www.telegraph.co.uk

Keep up to date on all of our latest news!