Expert questions the wisdom of new-builds as prices set to rise

Richard Bamford, senior director at CBRE in Leeds, said landlords and occupiers should consider refurbishment as an alternative to new-build.

He said: “Tender prices in most construction sectors are at a cyclical low and remain so despite pressures on contractors from increased building costs and material prices, especially those linked to the rising price of oil.”

He added: “Fierce competition and the fight for survival by contractors is likely to keep tender prices low for the immediate future with forecasters predicting rises from the end of 2014 or early 2015.

“Some developers are taking the chance and launching their schemes now with a good chance of beating the predicated price rise in tender prices. However, the window of opportunity is closing.”

A number of refurbishment schemes are currently underway in Leeds including Minerva House, 21 Queen Street and No. 1 Aire Street.

Mr Bamford said: “Compared to the increasing costs of newbuilds, the refurbishment and fit-out market remains very competitive.

“Firms are offering high quality work for comparatively low prices and coupled with the time advantages, landlords and occupiers should consider taking advantage of this while it lasts.”