The Society of Chartered Surveyors Ireland (SCSI) has revealed that house rebuilding costs have risen by an average of 12 per cent over the last 12 months.

However, the latest figure is significantly lower than the figure for the previous 12 months which was 21 per cent.

The company's House Rebuilding Guide for this year shows that there is a notable difference in the house rebuild cost depending on the type of property. In Limerick, a three-bedroom terraced house increased by eight per cent where as a semi-detached or detached house saw an increase of 14 per cent.

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Chartered Quantity Surveyor, Kevin Brady said the continuing increase in rebuild costs is a direct result of the shortage of construction labour across the sector combined with high levels of demand for builders.

Mr Brady stated: "Overall, the construction market is extremely busy, and this means it can be difficult to source labour or subcontractors for any type of build, particularly electrical, plumbing and heating. Material prices have started to stabilize for certain materials, however concrete products are still experiencing price increases as are insulation products, windows, and plumbing products and these are some of the key material cost drivers. Rebuilding a property is not the same as building new houses on a green field site. It requires specialist skills relating to demolition and supporting neighbouring properties. Rebuild projects can also present access challenges. As a result, it is almost a niche market and there can be difficulty sourcing contractors to take on rebuild projects. This will naturally be reflected in tender prices for such projects.”