The first price drops for construction materials are starting to appear as supply returns to pre-covid levels and demand drops as the housing market continues to stagnate.
The latest update from Construction Leadership Council’s Product Availability working group said: “The supply of most building materials returned to pre-covid levels. Tis includes bricks, blocks, boilers, plaster and timber products.
“Price inflation has stabilised. Whereas a year ago we were seeing increases of over 5%, if products are increasing in price, it is now at 1-2%.
Payment disputes are intensifying on site as main contractors look to hold on to as much cash as possible in the current economic climate
The Construction Leadership Council also sounded a warning this week for the supply chain as economic conditions tighten.
It said: “We are also aware that, the availability and costs of financing options increasingly limited, commercial behaviour is likely to harden putting pressure on lower tiers and SME companies reducing cash-flow capacity and making liquidity a greater challenge.”
Prime Minister Rishi Sunak has detailed his plans to roll back targets to get the UK to net zero in 2050.
His plan to water down green targets include: