Home rebuilding costs have risen by 7%, new report shows 

Construction sector labour constraints a signficant driver of additional costs 

The average rebuilding costs, depending on the city or region where the home is situated, increased by between €8,430 and €22,350 over the last year. 

The average cost of rebuilding a home has increased by 7% nationally over the last 12 months, driven by competition for construction work which has led to additional labour costs, a new report by the Society of Chartered Surveyors Ireland (SCSI) has found.

The report found the average rebuilding costs, depending on the city or region where the home is situated, increased by between €8,430 and €22,350. 

SCSI vice-president Tomás Kelly said the level of increase in rebuild costs was above that seen generally in the construction sector, as it is more heavily impacted by labour costs and availability.

“Rebuilding work faces stiff competition from other construction work, including new residential construction, and if demand for that increases in an area, this reduces capacity and potentially increases the costs of such reinstatement work,” he said.

He added two other cost drivers include the introduction of the landfill levy in September last year, as well as the recovery levy in January which he said were “additional costs for demolition works in particular, and construction works more generally”.  

In the regions analysed, Cork has one of the lowest increases in rebuild costs, up 3%, while the North-West has seen the highest, up 9%.

According to the report, the average cost to rebuild a standard three-bedroom semi-detached home — with an approximate size of 98sq m — in Cork increased €8,430 over the last year to €288,710. In Dublin, rebuild costs increased by €18,720 to €331,340.

In Limerick, the average rebuild costs increased by €18,720 to €286,550.

In the North-West, rebuild costs now stand at just over €270,000 — an increase of €22,350 year-on-year.

While the North-West saw the largest percentage increase, it still has the lowest rebuild costs countrywide, while Dublin has the highest.

These costs include demolition and site clearance of the previous structure.

Mr Kelly said the main reason for regional variations is differences in demand for builders and tradespeople.

“The rate of inflation in the reinstatement costs can vary across regions for a variety of reasons but is principally driven by the level of activity in a region at a given time,” he said.

“The North-East is experiencing significant development and its proximity to the Greater Dublin Area is a factor that sees a continuing narrowing of the cost differential in rates.” 

Average rebuild costs in the North-East increased by €21,760 to €293,220.

The SCSI publishes these figures to help homeowners estimate the minimum rebuilding costs of their home for house insurance purposes. It has advised these figures are based on estate type houses and people with one-off homes or period properties are advised to contact their local chartered surveyor.

Mr Kelly said homeowners needed to “ensure their house is adequately insured so that in the event of a total or partial loss situation, they are covered under their insurance policy when reinstating or rebuilding. For example, rebuild costs for a three-bed-semi have increased over the past 12 months from over €8,000 to over €22,000 depending on where you live.”

He added despite these increases, it did not necessarily mean premiums would also increase on a pro-rata basis. so homeowners are advised to shop around for the best deal on home insurance cover.