Home Improvement

Will Brexit Cause an Increase in the Costs of Home Improvements?

We are well aware that you may already be sick and tired of hearing or reading about Brexit (we definitely are!), but if you have had thoughts about making improvements or renovations to your property anytime soon, it may be worth your while to give the timing a bit of thought.

Regardless of your personal standpoint, the world is not going to end on 29 March 2019. Impacts of Brexit have already in fact been a bit more gradual. Yet the fact of the matter is that it has already started, which has already caused an impact on the costs involved in home improvements and companies like the KJM Group are starting to feel it.

Are the Costs of Home Improvements Increasing Due to Brexit?

The answer is “no” and “yes”. Impacts of Brexit, which is more accurately described as a referendum vote unquestionably has placed pressure on labour markets.

According to the ONS (Office for National Statistics), differences between the numbers of the EU citizens coming into the UK and the numbers that are leaving has sunk to 87,000 in this year up until March, which is the lowest level when compared to the year up until December 2012.

According to ONS, the shifts are driven by a decline in the EU arrivals as well as increases in the EU citizens that are emigrating.

Perhaps what is more important is the fact that the net migration into the UK from A8 countries which include Lithuania, Hungary, Czech Republic and Poland, who joined up with the EU in 2004, has for the very first time become negative. This has resulted in 45,000 arrivals compared to 47,000 departures.

Why is This Important?

Many of the migrant workers were included in this figure the building products and construction industries.

Door and window manufacturers on the whole, however, were recruited from A8 countries, with less of these recruits entering the UK from these countries, it has become more difficult to recruit, while costs for employment have also gone up.

In addition to this, more individuals happen to be in employment. The ONS reported in October that the wages have risen 3.1% in the 3 months that ended in August which represented the biggest average for wage increases since the economic collapse in 2008.

Is This Due to Brexit?

It is hard to argue this categorically, yet we are able to state that the labour costs continue to rise for various reasons, while historically this typically leads to a price increase for the consumers. One of the other factors is directly linked to a fall in the £.

What are the Long-Term Forecasts for the Costs for Home Improvements Due to Brexit?

At this stage, it is not easy to make predictions of accuracy from our current climate. The CITB (Construction Industry Training Board) published a Green Paper this summer that made suggestions that Brexit was already having a gradual influence on construction sectors.

It showed that about 1/3rd of the builders have concerns about the capabilities to recruit workers that are skilled, with 37% of these already working in sectors born out of the UK. It also stated that the builders have already experienced an increase in building material costs by 3 to 4%, over the year, with these costs directly affecting homeowners.

Reasons Why Brexit Has Made It the Ideal Time to Invest in Doors And Windows That are Energy Efficient

If you think about where we are currently, and if you can afford or are considering efficient new doors and windows, it could benefit you to bring your purchase forward. We are not trying to suggest this as a type of doomsday scenario. It is rather because nobody is too sure about what is actually going to play out. But what we do know is that at this stage energy efficient doors and windows are still affordable.

It is also worthwhile to look at what is going on in our energy markets.
Heating costs for residential homes are increasing. At the beginning of September, British Gas made an announcement of a 4% increase in energy costs, which will translate into an increase in average bills of £44 to £1,205 a year.

If you are able to afford it, then it makes sense that you should try to keep as much control over the rising costs in the way of making improvements to energy efficiency in your home. Investing in energy efficient doors and windows is an ideal way to achieve this.