New house prices are tipped to increase as the cost of building materials continues to soar.

Rising prices and supply chain issues caused by the Covid pandemic and border closures has resulted in delays to many projects throughout Australia.

According to figures from the Australian Bureau of Statistics the cost of building products went up by 12% in the past 12 months, with some products far exceeding that.

Reinforcing steel costs increased by about 43% while structural timber prices are up by more than 40%.

Master Builders Association NSW executive director, Brian Seidler, says builders contacting the organisation for advice on how to get out of fixed price contracts that tie them to prices provided when materials were much cheaper.

“If you’re considering building, you’ll have to consider that it will cost more,” Seidler says.

“Someone has to pay for this, you can’t ask a business to absorb it, in the end it’s you and me.”