The Society of Chartered Surveyors (SCS) says home insurance rates should fall because of decline in Irish house rebuild costs.
A new guide to house rebuilding costs, published by the Society, shows that rebuild costs for houses have fallen by an average of 4%. However the costs for the most common house type, the 3 bed semi, have recorded falls of nearly 10%.
The biggest decline, 10.2% occurred in Limerick while Dublin and Galway recorded falls of 8%.
Rebuild prices for two and three bed-roomed terraced houses also fell but by a lower amount, between 4 and 6% depending on location.
The SCS says the findings will be welcomed by all homeowners as they should lead to pro-rata reductions in house insurance premiums. However the figures indicate that rebuild costs for larger and detached houses are showing signs of levelling off with the rebuild costs for these house types declining by smaller margins or remaining static.
The SCS, the largest construction and property industry body in the country, publishes the guide to assist homeowners insure their property. The guide surveys rebuild costs for the main house types in all 5 major urban areas; Dublin, Cork, Galway, Limerick and Waterford.
It says the fall in rebuilding costs means that the cost of rebuilding a typical 3-bedroom semi-detached 95 sq m house in Dublin has fallen €149 per sq metre or from €204,056 last year to €189,132, this year, a fall of some 7.3%.
Once again Dublin has the most expensive rebuild costs across all house types. In Cork the cost of rebuilding the same type of house fell €133 per sq metre or from €162,636 last year to €149,232 this year, a fall of 8.2%. Rebuild costs are slightly cheaper again in Limerick, Galway and Waterford.
The cost of rebuilding two and three bed-roomed terraced houses in Dublin fell by 5 or 6% while the cost of rebuilding a 4 bedroom semi detached house in the capital only fell marginally. The cost of rebuilding a 4 bedroom detached house fell by 2.4%.
This general pattern of price falls was repeated in the other cities although there were some regional variations.
The chairman of the Quantity Surveyors Division of the SCS, Micheál O’Connor said that homeowners should ensure these latest rebuild costs are reflected in their insurance premiums.
“This is a guide which is based on average rebuild costs but the latest falls could very well be good news for homeowners and we would urge all of them to go to our website www.scs.ie. They can then use the straightforward calculator on the site before renewing their house insurance or if they want to check they are paying the appropriate premium’’ O’Connor said.
“While the average decline nationwide is about 4% there are quite a few variations depending on house type and location. The greatest price falls were clearly for 3 bedroom semis as this is the most common house type and greater cost saving can be achieved as a consequence” O’Connor concluded.
The full SCS guide featuring the price reductions of rebuilding a variety of house types in different parts of the country is available at www.scs.ie or free of charge by sending a stamped self-addressed envelope to the Society of Chartered Surveyors at 5 Wilton Place, Dublin 2.
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