TENDER prices for social housing in Scotland witnessed a 2.0% decline in 3Q 2023, marking the first fall since 2020, as reported by the Building Cost Information Service (BCIS).
The Scottish Social Housing Tender Price Index (SSHTPI) revealed a 2.0% decrease in tender prices for social housing in Scotland during the third quarter of 2023, compared to the previous quarter. Despite this decline, prices remained 3.6% higher than the same quarter in 2022, according to a report by the Building Cost Information Service (BCIS).
This downturn in prices is attributed to a broader contraction in construction output in both Scotland and the entire United Kingdom. The BCIS General Building Cost Index (GBCI) indicated a 1.8% quarter-on-quarter increase in underlying construction costs, encompassing labor, materials, and plant expenses, during 3Q 2023.
The SSHTPI, a reflection of housing sector demand, follows the trend in demand from the housing sector, which saw a 7.0% fall in Scottish housing output in 3Q 2023 and a 15% decrease over the previous year. In comparison, total GB housing output declined by 2% and 12% over the same periods.
Over the year leading up to 3Q 2023, the Consumer Prices Index (CPI) reported a 6.7% increase in underlying inflation. The SSHTPI is compiled by the BCIS for the Scottish Government More Homes Division.
For further insights from BCIS, visit BCIS.
