Why have kitchen/bathroom renovation costs risen over the past year?

 

A Global Challenge

If you are in the process of planning a new interior renovation or building project, rising costs and careful budget management will be something of which you are well aware. The factors that have led us here have been widely talked about in the news - a ‘perfect storm’ of interacting global issues that have emphasised and amplified the impact upon each other.

The Financial Times recently illustrated how the associated building material costs within the construction industry have risen since 2021. Whilst some of the 2021 HGV supply chain issues have receded in 2022, we continue to face challenges from Covid, inflation, energy costs, semi-conductor supply from the Far East and the war in Ukraine.

The graph shows changes in the costs of building materials. Source - Dept. for Business, Energy and Industrial Strategy. Link - Financial Times article

 

INTERIOR RENOVATION SECTOR

It is not unusual for suppliers to raise prices on an annual basis to reflect the prevailing annual rate of inflation, but this year has been different. We have seen higher price percentage rises and, in some cases, multiple increases from the same supplier. Unfortunately, the causes have been mainly out of their control; for example:

  • High demand and low supply of semi-conductor computer chips, used in many industries, have pushed up the cost per unit and reduced availability.

  • Covid restrictions in China have led to staff shortages and reduced production and exports.

  • Rising energy costs have raised the baseline cost for producing many products, from basic building materials to complex assemblies.

  • Spiralling fuel prices have impacted supply chains and shipping.

There is no doubt that a like-for-like kitchen or bathroom in 2022 will cost more than it did in 2021. How much largely depends on the specification of your design. However, it shouldn’t be a reason to prevent you from bringing your dream to life.

Whilst we can’t magically turn back time, this article offers some design ideas and project guidance that could help you to make the right decisions regarding your impending investment. After all, a well-designed and installed kitchen, bathroom or living space is always likely to improve your lifestyle and add value to your property.

WHAT CAN I DO TO SAVE BUDGET ON MY KITCHEN OR BATHROOM RENOVATION?

 

BE DECISIVE – SECURE PRODUCTS, PRICING & DELIVERY

Through the design process, you will work closely with your designer to create a space that gives you the necessary functionality, wrapped in a style that reflects your individuality and taste. It’s one of the most enjoyable elements of the process, but it can also be difficult to confidently move ahead with your project knowing how much of an impact the result will have on your lifestyle.

Previously, having weeks to consider your choices wouldn’t necessarily make much of a difference to the budget - time didn’t cost. That isn’t quite so true in 2022. The uncertain nature of supply chains and the speed at which the global outlook can change has made cost or stock level changes more frequent – much faster than we have witnessed in the past.

What does this mean for you and your project?

It means that, once you are happy with a design, a decisive move to place an order will help to secure current prices, as well as give you the best chance of protecting yourself from unforeseen changes in availability and lead times.

We will always try to make you aware of future cost adjustments that could impact your budget, but not all are clearly signposted by suppliers in good time. This can also be true of stock levels. For example, the quota of tiles you require for your new master ensuite might be available when a quote is presented, but two weeks later the supplier might be awaiting stock replenishments.

PRIORITISE YOUR WISHLIST

Thinking about your kitchen or bathroom wishlist can help you prioritise what you really want, and what you might be open to compromising (for example, to help with any budgetary constraints) in your new space.

It could be that you have fallen in love with a particular finish of the worktop that you couldn’t live without, but the number of internal drawer pull-outs isn’t so critical. Similarly, you may desire a certain style of bathroom sanitaryware but would be happy to adjust the finish of your bathroom furniture.

Having an open mind can provide you and your designer with opportunities to find an agreeable solution. It is your home, so it makes sense that we try, where possible, to include the things that hold the most value to you, personally.

In a kitchen, we would always recommend your budget is biased towards purchasing the best furniture you can afford. The reason for this is the furniture is designed to last 20 years or more and to change it requires the most upheaval. Kitchen appliances and taps can be replaced at a later date without causing such an upset.

The same applies to your bathroom – spending a little extra for good quality products which will stand the test of time will prove to be a better investment in the longer term. The old adage, ‘you buy cheap, you buy twice’ is ever more relevant, both from a cost and sustainability point of view.

YOUR CHOICE OF FINISHES

Your choice of finishes can have a significant effect on the cost of a kitchen or bathroom. For example, changing from laminate to solid walnut frontages could see you add thousands to your bulthaup b3 kitchen.

That isn’t to say you shouldn’t have a kitchen that is styled as you would like. It might be that you can use the more expensive surface material in a refined manner, combining it with a more cost-effective option. Many Hobson’s Choice clients choose to use more expensive finishes across a bank of tall units, paired with complementary laminate fronts on lower units and kitchen islands. This not only looks fantastic, but it’s also an eminently practical/pragmatic choice, as the resilience and durability of bulthaup laminate are located in the areas of highest wear and tear.

In a bathroom, some tiles are more expensive than others, but you won’t generally realise the same degree of cost saving with cabinet materials, due to the small amount of cabinetry in a bathroom.

MULTI-ROOM PROJECTS

Keeping tabs on multiple suppliers, their respective schedules of work and the overall project budget can be challenging in a multi-room renovation. In these circumstances, finding a supplier who can oversee and facilitate all the work in a single package could save you time and money.

There are many kitchen and bathroom specialists, but not all are able to provide a complete service.

THINK CAREFULLY ABOUT SUPPLY ONLY

Part of what makes a Hobson’s Choice kitchen, bathroom or interior unique is our demand for the very best installation craftsmanship. We believe there is no excuse for a poorly fitted space when such consideration has been made to getting the design just right.

When thinking about savings it doesn’t necessarily always relate to cost alone. Reducing your stress and wasted time is just as important.

We will save you time:

  • We handle the communications, logistics, scheduling and management of your installers, ensuring deliveries arrive in step with the project programme

  • We have 45 years of experience in the management of installers and contractors

  • Our collective pool of expertise will be on-hand to support any unforeseen challenges, resolving them quickly and efficiently

 

We can ensure budgets remain on track:

  • We accurately account for all material, labour, logistics and waste removal costs upfront

  • We work to an agreed price, based on the knowledge we have prior to work commencing

We provide work quality assurance:

  • The installation is assessed and signed off by your Project Manager, a person with years of on-site experience who knows about the intricate details that make the difference

  • As a reflection of the specialised nature of the kitchen system, and the importance of a top-quality installation, a bulthaup kitchen warranty can only be issued when the kitchen has been installed by an accredited installer. The accreditation can only be achieved upon the successful completion of a training course delivered at bulthaup headquarters in Germany.

IN CONCLUSION

The reasons why costs have risen over the past year are many. There isn’t one specific element to blame or an indication that the current global economic market trends are set to change in the short to mid-term.

A reassuring point is that the housing market remains in a strong, stable, position and a change to a more hybrid working situation look to stay. Therefore, anyone thinking about a new kitchen, bathroom or living space renovation should take comfort in the fact their investment will be worthwhile.