Tender prices for social housing in Scotland increased 4.0% in 2Q2022 compared to the previous quarter and 12.7% compared with 2Q2021. The highest annual growth since the index was introduced in 2010.
These are the results of the latest Scottish Social Housing Tender Price Index (SSHTPI) prepared by BCIS for Scottish Government, More Homes Division.
Underlying construction costs of labour, materials, and plant, as measured by the BCIS General Building Cost Index, increased by 6.1% quarter-on-quarter in 2Q2022 and by 14.8% compared to the same quarter a year earlier.
Tender prices are driven as much by demand as by resource costs. The SSHTPI has tended to reflect the trend in demand from the Scottish housing sector, although these have diverged in recent quarters, where output was up 11.6% in 2Q2022, compared with the previous quarter, but down by 11.8% compared with the same quarter in 2021. This suggests that tenders in the quarter are responding to cost push rather than demand pull.
*(SSHTPI (1985=100), Scottish new work housing output, £m, constant 2019 prices)
BCIS prepare specialist indices for clients, consultants and contractors for more details see Consultancy | BCIS
The Scottish Social Housing Tender Price index is based on comparing the prices for the construction of houses in current schemes with cost models of dwellings of different type see full description at: Scottish+Social+Housing+Tender+Price+Index+description+paper.pdf (www.gov.scot)
The full report on the index is published by the Scottish Government More Homes Division Scottish+Social+Housing+Tender+Price+Index+Quarterly+Report+September+2022.pdf (www.gov.scot)