House builders major slow down in 2023 - Could this assist house extension projects?

The news from the NHBC that 40% less starts on new houses have been registered in the first quarter of 2023 is the stark reality of the impact of rising energy prices and the significant increase of interest rates making borrowing much more expensive. The report, issued recently by Housing Today Indicates that private sector new-build starts are down almost 50% compared to the beginning of 2022, a period in which we were just recovering from COVID and at that time not really aware of the impending war in Ukraine.

The news is no surprise, PAPA were aware at the turn of the year that the availability of labour in the industry is becoming much more prevalent, with sub-contractors chasing work rather then there being no trades available.

How will this assist the householder wanting to extend their homes?

Well the cost of labour has become more competitive as the trades want to keep busy rather than charge a premium for their time, and material prices are now levelling-out and so there is now a degree of certainty on material prices. The key is that the small builders are freeing-up and looking to keep busy and so if you are thinking of extending your homes, and you have the money or can borrow at a reasonable rate, then now is as good a time as any.