Does anyone think building costs will come down as the housing market stagnates?

[TuttiFrutti]

We've been quoted astronomical figures to build a small kitchen extension. I'm just wondering if, if we waited till next year, building prices might be cheaper.

But it could go two ways as I see it. There is a recession coming, or at least very little confidence in the economy, which means everyone has less cash to spend - so this might lead to less demand for building.

On the other hand, if people move house less, will this mean they extend instead of moving? So builders are actually more in demand than ever?

What does everyone think?

They usually do

we found the latter

There is very little remortgaging going through though.Lots of builders get less work in downturns If the general cost of living is high people don't get as much done to their houses.Extending was very popular though when the banks were lending loosely.

Agree with Capp.

The cost of moving is so prohibitive that many people around us stay put and build extension or go into roof.

I think the opposite. Builders will more in demand as people sit tight and alter/extend the property they have. The more in demand the higher the fees.

I would have thought building costs will go up - if people can't move to bigger houses they'll look to extend - so it's a captive audience!

Really I have always found builders eager and competitive in a downturn and really busy when money is in abundance.I think the crunch will affect all loans even smaller ones for home improvement Although do agree it is wiser and nicer to improve your own home

i think they will go up for all the reasons PPs have stated

FWIW, we are having some work done ATM, and materials have gone up in price - copper tubing for pipework etc has tripled in the past year

I think people will want to improve their homes but where will the £ come from?

It's basic economics: prices rise when demand exceeds supply.

Of course if there is a real down-turn in the economy and people start to lose their jobs, some might find it difficult to finance home improvements.

But as things stand spending money on improvement rather than on moving house makes good sense as a lot of the costs when you move result in money down the drain (estate agents fees, stamp duty, surveys, legal fees, HIPs) whereas extending or improving normally has a positive effect on value.

Alas the Poles are going home. That'll push up costs.