Davis Langdon
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Cost Model Update - November 09

Cost Model Update - Nov09

Category Cost update

Published November 2009

Author Max Wilkes

Max Wilkes of Davis Langdon revisits affordable homes, extra-care homes and nursing homes to find out what effect changes in regulations and tender price deflation have had on the sums

In the past year new orders have declined rapidly, and tender prices
have followed them down. Every updated forecast seems to deepen
the gloom a little more; for example the Building Cost Information
Service’s (BCIS) tender price forecast for this yearwas amended from
–9.5% to –11.6%. However, it has so far maintained its forecast of a fall of
–2.8% for the 12 months to the fourth quarter of next year.