House rebuild costs in Kildare have increased by an average of 3%

SCSI are urging homeowners in the county to also check they are adequately insured

The latest House Rebuilding Guide published by the Society of Chartered Surveyors Ireland (SCSI) shows that national average re-build costs, which include demolition and site clearance, have increased by an average of 6.2% over the past 12 months.

The rate of increase in the Dublin region – which includes Kildare - was half the national rate at 3%, but the region still has the highest rebuild rates in the country. The SCSI’s House Rebuilding Guide, which has been published annually since 1989, is used by homeowners to calculate the rebuilding costs of their home for house insurance purposes.

While welcoming a moderation in the rate of increase – last year’s increase was 12% -  Chartered Quantity Surveyor Kevin Brady said labour costs and skills shortages are continuing to drive rebuild costs.

“Due to covid, the war in Ukraine, high energy prices and supply chain issues the construction market experienced significant volatility over the last five years. The resolution of some shortages and supply chain issues has led to the cost of some materials moderating – the price of insulation, timber and paint for example have generally settled down.”

“However, we are continuing to see increased costs in labour intensive tasks such as demolition and disposal of waste material while skill shortages across plumbing, electrical, heating and other trades are also contributing to increased costs. SCSI members are saying the demand for builders throughout the country remains at an all-time high and this is also a contributory factor to the increases we are seeing in this year’s figures. The introduction of the concrete levy has increased the cost of pre-cast and pouring concrete while the introduction of two new levies on waste and disposal in September is likely to increase costs going forward.”  

Regional Breakdown

This year’s Guide shows – see Figure 1 - that increases in rebuild costs range from 3% in the Dublin/Kildare region to 10% in the North-West.  Although Dublin / Kildare recorded the lowest increase, the region has the highest rebuild costs while the North-West, which recorded the biggest increase, has the lowest.

This year three discernible groups emerged across the regions. In the Dublin region and Galway rebuild costs increased by 3% and 4%, in Limerick and Waterford the figures were 5% and 6% respectively while at the higher end the increases ranged from 8% in Cork and the North East to 10% in the North West.

Kevin Brady says the main reason for regional variations are differences in demand for builders and tradespeople.

“Higher increases were reported in the Dublin region some years back and it clearly has the highest rebuild costs now. This probably explains why the rate of increase there is somewhat lower, but demand for builders in Dublin and the commuter belt remains very high.  Cork has experienced a boost in activity over the past two years and that is reflected in higher rates there. Similarly, the North East is experiencing significant development and the increased pressure on labour and availability of builders has we believe resulted in an increase in rates in this region also. Again, in the North West we are seeing increased market activity and continuing labour shortages with many builders and trades people pursuing the higher rates which are on offer in other locations.”

Importance of being properly insured 

While price increases may have moderated, the Dublin region, not surprisingly as Fig 1 one shows, still has the highest rebuild costs, while the North-West has the lowest.  

According to these figures the minimum base cost of rebuilding a 3-bed semi, the most common house type in the country is €312,620 in Dublin / Kildare (98sqm x €3,190) while the minimum base cost of rebuilding a similar house in the North-West, is €247,744 (98sqm x €2,528) – a difference of close to €65,000 (See Fig 2). The SCSI is urging homeowners to take the time to ascertain the correct reinstatement cost based on house type and location. 

“Homeowners need to ensure their house is adequately insured so that in the event of a total or partial loss situation ie a fire, they are covered under their insurance policy when reinstating or rebuilding. For example, rebuild costs for a 3-bed-semi – see Fig 2- the most common house type in the country have increased over the past 12 months from €9,400 to over €22,500 depending on where you live.”

“While these increases are significant it does not necessarily mean premiums will increase on a pro-rata basis and homeowners are advised to shop around when seeking insurance cover for their homes. It’s really important for Kildare homeowners to put aside ten minutes to use the SCSI Home Rebuild Calculator, which is free – to get an accurate reinstatement figure and ensure their home insurance is up to date. If it’s not they need to contact their home insurer. Some insurers are now auto adjusting insurance policies on an annual basis and homeowners need to satisfy themselves that any quotes they receive are aligned with current rebuild rates.” Mr Brady said. 

The SCSI points out that the rebuild figures are based on estate type houses and people with one-off homes or period properties are advised to contact their local chartered surveyor. A list of chartered quantity and building surveyors who carry out these assessments is also available on the SCSI website. 

Dangers of under insurance and underestimating reinstatement costs

The President of the SCSI Kevin Hollingsworth, who’s from Dublin, said two related issues which come up on a regular basis regarding insurance are consumers underinsuring their property and underestimating the cost of reinstating the property.

Many homeowners do not realise that if they are not adequately insured, they may be penalised under their policy by having to pay a certain proportion of the reinstatement costs out of their own pocket. 

“If the actual rebuilding cost of a property is €400,000 but the sum insured is for €200,000, that property is massively underinsured. In the result of a genuine claim for damage covered under the policy of €90,000 being made, the insurance company payout will only be €45,000 as the policy holder was 50% underinsured.

“In this situation the insured party will be obliged to provide the balance of €45,000. This is something many homeowners may not be aware of. The onus is solely on the policy holder to maintain an accurate sum of insurance. It’s also important that homeowners reassess their cover to take account of any changes such as home office extensions or garden offices and to include them in their house insurance.” 

“The other issue we often see is people underestimating the cost and scale of reinstatement works. Last year a client whose Clontarf home was flooded by storm Antoni believed that because the water only came in up to 50cms and was only in the house for a short time that they would simply be able to mop it up and reoccupy the property. When this happens, it is essential that all elements touched by the flood waters are stripped out. If left kitchen presses will inevitably swell and warp and plaster will fall. It was a devastating reality check for this client that they would have to leave the property for a number of months. This was compounded by the realisation that due to rising rebuild costs they were underinsured. So I would urge all homeowners to take the time to check they are adequately insured. It won’t take long and it is time well spent.”

The SCSI’s House Rebuilding Calculator and the 2024 Guide to House Rebuilding Costs is available free at https://scsi.ie/calculator