The latest Guide to House Rebuilding Costs published by the Society of Chartered Surveyors Ireland (SCSI) shows that re-build costs in Longford have increased by the national average of 7.3% over the past 18 months.
The Guide to House Rebuilding Costs, which is used by homeowners to calculate the rebuilding costs of their home for insurance purposes, shows the increase in rebuild costs ranges from 5% in Dublin to 9% in the North West.
Micheál Mahon, the President of the SCSI said the main reason for cost increases was compliance with new Nearly Zero Energy Building (NZEB) standards requirements and an increase in the cost of building materials.
“We fully support the introduction of NZEB standards and recognise the key role they will play in helping to reduce CO2 emissions and reducing energy costs over the long term. However, from a building perspective, they do come with an upfront cost.
“For example, if you’re rebuilding a house – or 25% or more of it – the ‘envelope’ or surface area of the home has to be bought up to a B2 BER rating.
“The envelope is the total surface area of the house which leaks heat, so it includes external walls, windows, doors, the ground floor and roof or ceiling. Replacing heat pumps, temperature control systems, heat recovery systems all adds mechanical, electrical and plumbing costs to the rebuild process.
“In addition, Brexit has led to supply issues with building materials and increased the cost of a range of products, including insulation and timber products, mesh, structural steel, plasterboard and metal studs, to mention just a few.
“The construction industry has adapted well to working safely in the era of covid and the new protocols have not led to significant cost increases for one off residential rebuilds,” Mr Mahon said.
The Society believes the variation in the costs increase is due to increased competition between contractors in Dublin while it also reflects what is happening in the wider property market with prices stabilising in Dublin but still rising in the regions, though coming off a lower base.
While price increases may have moderated in Dublin, not surprisingly the capital still has the highest rebuild costs. According to the figures the cost of rebuilding a 3-bed semi in Dublin, is €218K, while the cost of rebuilding a similar house in Longford is €176K, a difference of €42K.
Put another way the cost of rebuilding a 3-bed semi in Dublin is €2,290 per sq.m versus €1,855 per sq.m in Longford.
Eamon Gavigan, who is Chair of the North Eastern Region of the SCSI warned that homeowners in the county may well face pro rata increases on their home insurance premiums due to the rise in rebuild costs.