Sharp rise in building costs of new homes
The construction costs of new homes were 8.5% higher in the first quarter of 2001 than in the same quarter last year. This is the highest growth rate for these costs since the series began in 1995.
One of the factors contributing to this increase was the rise in the rate of VAT which came into effect on 1 January 2001, from 17.5% to 19%. If the effect of this increase is eliminated, building costs would have risen by 7.1%.
Construction costs of new dwellings