This case study highlights the importance of factoring in cost inflation when thinking about taking on a construction project.
These pictures are designs from two similar projects, 7 years apart. The first image is a photo from 2017, the second is a render image from 2024.
PROJECT 1 is a house extension in Torfaen. This project, undertaken in 2017, provided a single storey extension with a pitched roof that covered an area of 18.5m2.
The cost was £36,400+VAT. This means a cost per m2 of £1,967+VAT.
PROJECT 2 is another house extension in Torfaen, undertaken in 2024. Again the project required a single storey extension with pitched roof, and covered an ever so slightly smaller area of 17m2.
This time the cost was £46,976+VAT. That means £2,763+VAT per m2.
For broadly the same project, we have seen costs increase by around 40% over a short period of 7 years, despite inflation for that same period being closer to 30%.
It is important to consider budget and cost inflation when thinking about taking on a construction project!