Brexit Could Raise Construction Costs By 15 Per Cent

timber frame homes

If you’re planning to build your own timber frame homes in the next few months, the EU referendum couldn’t have come at much of a worse time according to housebuilders. After a long wait and much speculation, we’ll finally know the answer in the next day to the question of whether the UK will remain in the EU, but with it also comes the risk of rising costs of construction costs reports the Construction Enquirer.

One of London’s leading housebuilders Galliard Homes has written to all its corporate clients and suppliers to warn of the effect that a vote to leave would have on the construction business. According to this letter, a ‘Brexit’ would mean more expensive building materials and increased labour costs.

Galliard managing director Don O Sullivan warned: “If the UK is not part of the EU then industry construction costs could rise by up to 15% since currently construction materials imported from and exported to the EU are free of duty and taxes.”

He also said that London’s property market could falter, as certain groups ‘flow’ out of the capital and the construction industry could stagnate.

With the remain campaign focussing on the loss of skilled workers (of which there is already a shortage of in the UK) through immigration changes, the construction industry has largely (85 per cent in fact) come out in support of vote remain. However, the leave campaign has put job worries down to ‘scaremongering’ alone by outspoken advocates such as the Chairman of JCB.

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