The Construction Leadership Council’s Material Supply Chain Group flagged the issue in its latest update alongside rising prices for timber.

It said: “There are reports of price volatility affecting two specific product areas, timber related products and PIR insulation boards, feeding into housing projects.

“A steady increase in timber prices was predicted last year and is the result of reduced production and stock in a slowing market.

“The main concern relates to PIR insulation where prices have increased significantly due to issues around the supply of chemicals used in their manufacture and a continued rise in demand could drive further price increases.”

Data compiled by building products distribution giant SIG shows PIR insulation board manufacturers are planning a round of 10% price hikes this summer.