The figures are based on the BCIS Private Housing Construction Price Index, which also found that costs in Q1 rose by 1.5%.

Three-quarters of contributors indicated costs had increased in Q1, while two-thirds saw a rise in material costs.

Some 40% reported labour cost rises and 25% cited increases in sub-contractors’ prices.

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Cost increases specifically mentioned by individual housebuilders were:

• floor beams
• bricks and blocks
• the impact of exchange rates on imported prices
• insulation
• roof tilers
• scaffolders
• bricklayers
• dry liners
• plumbers
• electricians.

The Royal Institution of Chartered Surveyors felt that the general sentiment was that material costs were rising due to the devaluation of sterling, whereas labour costs were increasing due to an acute skills shortage.

Looking to the future, the responding contractors told the report that they expected their costs to continue to rise in the second quarter of 2017 by a further 1%.