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The effects of the building materials shortage in the UK are certainly being felt in Yorkshire, where prices for a wide range of popular materials have skyrocketed in recent months, according to Ghent Visick’s (GV) building consultancy.

The company’s figures show that steel prices in the region have increased by an average of 20% and timber prices by 30% since January.

GV’s construction advisory division provides cost advice, contract administration and project management for a wide range of new construction and refurbishment projects across Yorkshire and beyond. The company is also currently advising on several large-scale developments, including more than 1 m² of new industrial space in two locations in Thirsk and Doncaster.

Gavin Ritchie, director of GV’s construction consultancy, said: “The current demand for building materials in the UK is having a major impact on Yorkshire. We are currently seeing major bottlenecks in common products such as cold rolled steel, cement, particle board and cladding.

Part of the problem is that a lot of construction projects started at the same time as the country came out of lockdown, and the high number of people doing home improvement was also well publicized. All of this has led to a huge surge in demand, and to make matters worse, the pandemic has pushed shipping costs up.

“As a result, wood prices have risen significantly and steel prices have already risen by a fifth since the beginning of the year and could rise by a further 20% by October.

“These price hikes and delays in securing products are now affecting the timing of projects. In addition, contractors have difficulty setting bid prices because, in some cases, material prices change on a daily basis. This also means that the actual construction costs have risen sharply since estimates and initial estimates were made, which can often be 12 months before the start of work.

“Depending on the wording of the contract, contractors often have to accept these price increases and delays, which puts them under additional financial pressure in an already difficult time. It’s a challenging situation that will likely continue until supply catches up with demand. “

GV is a leading niche real estate advisory firm with offices in Leeds and London providing construction advice, industrial representation, investment and strategic advisory services.

This was posted by Steven Wright on the Bdaily member news section.