We previously forecasted that the cost inflation of insurance repairs over 2022 would be in the region of 10%. This remains unchanged. However, we continue to receive evidence of material price increases charged by builders merchants, citing ongoing inflationary factors such as the war in Ukraine.
In a recent survey, where we asked questions about how contractors view the current market and their level of optimism, they reported continued difficulties in retaining labour. Our inflation forecast of 10% is therefore optimistic. The war in Ukraine has shown how global events impact industry costs, and recent tensions in Taiwan highlight that the situation could quickly change. Although, as one of our contractors reminds us in their responses, we remain optimistic.