Concerns over the rising costs of construction materials could be exacerbated by a weakening currency following the EU referendum result, the Federation of Master Builders (FMB) has warned.

Commenting on the FMB’s State of Trade Survey results for Q2 2016, which show that two-thirds of construction SME bosses predict material price inflation, Brian Berry, chief executive at the FMB, said: “Following the EU referendum, the plummeting value of sterling has further complicated an already difficult situation for small construction firms. Even prior to the referendum result, nearly two in three bosses were anticipating rising material costs, on which there has been intense pressure over the past couple of years, as demand for projects has picked up again. With the dramatic fall in currency value however, we’re concerned that the trend towards price inflation will gather pace. We’ve already heard accounts of timber and brick costs rising, and a number of sources have said that even steel prices have risen by 8% since the decision was made to leave the EU.”

Berry added: “Combined with the continuing skills shortages shown in our survey results, which puts upwards pressure on salaries and wages, the costs associated with running a small construction firm are on the rise.”