The most recent report by the Federation of Master Builders (FMB) warns that increased skip and diesel prices will make it more difficult for homeowners to improve their homes.
The FMB’s report shows that almost 66% of builders have had to pass the increased cost of skips and diesel onto their clients, making home improvement projects costlier for homeowners.
The research suggested that the price of skips has increased over the past 12 months.
The average cost of an eight yard skip has gone up by £24 over the past year, meaning an additional cost of £360 for the usual extension.
The impact of increased diesel prices is also starting to take its toll on small and medium-sized (SME) construction firms who worry about the possible future of their finances.
The report found that nearly half of construction SMEs have made lower margins on projects and a fifth of construction firms have been forced to raise the prices they charge to their clients.
In addition, the increased prices have caused many firms to accept more jobs that they would have usually turned down.
Not only are the increased prices a cause for concern for homeowners, but the issue has also led to pre-empted concerns over the environment.
Commenting on the research, Brian Berry, Chief Executive of the FMB, said: “The impact of the rising price of skips could have an impact on our communities through a rise in fly-tipping.
“No matter how much the price of skips might increase, there is never any excuse for fly-tipping and any individuals found doing so should be severely reprimanded.
“In 2016 and 2017, more than one million incidences of fly-tipping were dealt with by councils in England and the last thing anyone wants is for this number to increase.”
Berry concluded: “The increase in the price of skips and diesel have come at a bad time for the UK’s builders.
“The cost of doing business is rising more generally for construction firms. Wages and salaries are all rocketing because of the ever-worsening skills shortages in construction.
“We are advising builders to price jobs and draft contracts with this plethora of price rises in mind to avoid a further squeeze on already razor thin margins.”