Construction costs for Scottish social housing have shown strong growth over the past two years, according to consultancy, Building Cost Information Service (BCIS).

According to Joe Martin, BCIS lead consultant: "Two indices prepared by the Building Cost Information Service (BCIS) are up by over a quarter since the beginning of 2021.

"The Scottish Social Housing Tender Price Index1 was up 27.3% between the fourth quarter of 2020 and the fourth quarter of 2022, while the BCIS Private Housing Construction Price Index2 (PHCPI) was up 27.0% over the same period.

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"Tender prices for social housing in Scotland increased 2.1% in the fourth quarter of 2022 compared to the previous quarter and 16.9% compared with the fourth quarter of 2021.

"Tender prices are driven by demand and by resource costs.

"The Scottish Social Housing Tender Price Index has tended to reflect the trend in demand from the housing sector.

"Total GB housing output is up 7.5% in the year to the fourth quarter of 20222, although Scottish housing output has fallen slightly (O.5%) over the same period.

"Underlying construction costs of labour, materials, and plant, as measured by the BCIS General Building Cost Index (GBCI), remained unchanged quarter-on-quarter in the fourth quarter of 2022, but rose by 9.4% compared to the same quarter a year earlier.

"Over the year to the fourth quarter of 2022 underlying inflation, as measured by the Consumer Prices Index (CPI), rose by 10.8%."