The cost of house building has been on a steady rise for a long time.
But now a new report from the real estate firm CBRE suggests the cost of construction in the UK could be cheaper than we thought.
The firm found that the average house price in the country is now cheaper than it was five years ago.
The cost of building a house rose by 3.2 per cent last year, the firm found, and that rate is expected to rise by an additional 2 per cent this year.
So, a house built in 2020 will be more expensive to buy than a house completed five years later, according to the report.
And the real cost of the cost is expected a rise by 2 per Cent this year, according the report, to £834,900.
More:The cost is only going to increase more in the future, with the real price of a house in the US rising by 10 per cent, to $1.07 million.
That’s $8.3 million, or roughly 1.5 times the real value of the house in England.
However, a bigger change is expected in the next five years, when the real average price will jump by 15 per cent to $3.1 million.
This could mean that the UK will be a lot cheaper than the average buyer is being led to believe.
Read more about house construction:The report said the average price of house in Britain is currently more than $2.4 million, compared to $2,900 in the United States, and $3,300 in the Netherlands.
And it found that when it comes to the cost per square metre, Britain has the lowest cost per sq metre of any country in the world.
We’ve been building houses for decades, and the cost has always been cheaper than in most other developed economies, the report said.
There is also the question of affordability.
The cost per foot of new house construction is expected rise by about 25 per cent over the next decade, and it is forecast to climb by another 30 per cent by 2034.
As the report notes, this will mean that it is cheaper to buy a house today than it would have been a decade ago.