Increases in raw materials are expected to put further pressure on the current upward trend in house prices. Brexit, Covid-19, shortages and the recent increase in demand are combining to cause what may see the price of basic building supplies rise by 5% to 20%.
Industry experts such as Brett Martin and Martin Mackey, chief executive of the Hardware Assocation of Ireland, believe that the cause is related to supply shortages. They draw attention to the bad weather in the United States which had a negative impact on the oil industry, having a detrimental effect on the plastics industry. They also noted that homeowners are expected to spend more in the short term, pointing to the fact that planning permission for extensions in Ireland are up by 45%. The US president’s $2 trillion recovery plan will also increase demand, straining global supply chains.