Just had my buildings insurance renewal through, and have found that
they the index-linked rebuilding cost has been increased by 8%. That
sounded to me like a ****-take, but I went for a shufti over at
www.bcis.co.uk, and indeed, that seems to be the correct figure at the
moment.

Why? General inflation is down at low single figures, and house prices
certainly haven't increased this year (although I know that doesn't
relate directly to rebuild costs). Just wondered why the figure is
apparently so out of step?

David

"Lobster" wrote in message
...
Just had my buildings insurance renewal through, and have found that they
the index-linked rebuilding cost has been increased by 8%. That sounded
to me like a ****-take, but I went for a shufti over at www.bcis.co.uk,
and indeed, that seems to be the correct figure at the moment.

Why? General inflation is down at low single figures, and house prices
certainly haven't increased this year (although I know that doesn't relate
directly to rebuild costs). Just wondered why the figure is apparently so
out of step?

David

Have a look why inflation is so low. It's mainly from cheaper imports of
commodity goods which have generally been deflationary. Services and
manpower has gone up disproportionately to give a net inflation figure of
nominally 2%.

Just had my buildings insurance renewal through, and have found that they
the index-linked rebuilding cost has been increased by 8%. That sounded
to me like a ****-take, but I went for a shufti over at www.bcis.co.uk,
and indeed, that seems to be the correct figure at the moment.

Why? General inflation is down at low single figures, and house prices
certainly haven't increased this year (although I know that doesn't relate
directly to rebuild costs). Just wondered why the figure is apparently so
out of step?


The index reflects the market price for building work. That reflects the
degree of demand for building work. This often varies wildly from housing
market demand and pricing.

Peter Crosland

Fred wrote:
Have a look why inflation is so low. It's mainly from cheaper
imports of commodity goods which have generally been deflationary.
Services and manpower has gone up disproportionately to give a net
inflation figure of nominally 2%.

Services & manpower are dropping in the building trade due to cheap labour
from the Balkans & similar areas. The hire of breakers & mini diggers is
declining slightly because it's cheaper to pay £25 a day cash in hand and
get it done manually.

Dave

On Mon, 10 Oct 2005 16:03:23 GMT, "david lang"
wrote:

Fred wrote:
Have a look why inflation is so low. It's mainly from cheaper
imports of commodity goods which have generally been deflationary.
Services and manpower has gone up disproportionately to give a net
inflation figure of nominally 2%.

Services & manpower are dropping in the building trade due to cheap labour
from the Balkans & similar areas. The hire of breakers & mini diggers is
declining slightly because it's cheaper to pay £25 a day cash in hand and
get it done manually.

I noticed after the housing crash (when builders were apparently going bust
left right and centre), that rebuilding costs forged on up regardless. My
best guess is that rebuilding is a "distress purchase". As such, usual laws
of supply and demand tend to go to the wall.

--
"Bother," said Pooh as he deleted his message base.