Confidence in the UK construction sector at its highest since end of 2007
|Thursday, 25 April 2013|
More professionals in the construction sector in the UK saw workloads rise than at any time since the end of 2007, according to the latest market survey from the Royal Institution of Chartered Surveyors (RICS).
In the last quarter some 10% more surveyors across the country reported rising workloads and one of the main drivers behind this was the boost in private housing construction.
While still historically low, the boost in house building would suggest that some of the government initiatives are quietly beginning to breathe life back into parts of the nation's property sector, says RICS.
However, there are regional differences across the country. While London, the South East and the Midlands saw increases in construction, Northern Ireland and Scotland continue to see workloads slip. The sector in these parts of the UK remains particularly depressed and the picture shows no immediate signs of improving.
Looking ahead, surveyors expect the current more positive trend to continue. A net balance of 27% more respondents expect workloads to rise over the coming 12 months. RICS says it would appear that at long last, a little bit of confidence is gradually returning to the industry.
It also points out that the increase in construction projects and the expectation of further gains, however limited, resulted in a welcome rise in job expectations with 22% more chartered surveyors anticipate employment levels rising over the coming year but the profit outlook is projected to remain depressed.
‘Although it's far too early to start talking about a recovery in the construction sector, the rise in output at the beginning of the year is a little better news,’ said Simon Rubinsohn, RICS chief economist.
‘The government's attempts to stimulate the market seem now to be having some impact but there are still significant challenges to be overcome. In particular, the availability of finance and planning related issues continue to present obstacles to development,’ he added.
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