More than two thirds of small and medium-sized UK building firms have seen a rise in the cost of materials caused by the fall in the pound since the EU referendum, according to the Federation of Master Builders (FMB)

Fresh research, revealed in the FMB’s quarterly State of Trade Survey, also found that further material price increases, possibly up to 15%, are expected later this year, which could see the cost of new property development projects increase.

Sarah McMonagle, director of external affairs at the FMB, said: “Thousands of smaller building firms are grappling with the rising cost of materials caused by the depreciation of sterling since the EU referendum.”

She added: “The combined pressure of higher material prices and the rising cost of skilled labour represents a serious challenge to builders. What this means is that home owners could start to see the cost of their building projects increase.”

Some homeowners now face having to compromise on aspects of their project, due to the fact that certain materials have become “too expensive”, according to McMonagle.