{"id":136677,"date":"2024-02-01T13:44:03","date_gmt":"2024-02-01T13:44:03","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=136677"},"modified":"2024-02-01T13:44:03","modified_gmt":"2024-02-01T13:44:03","slug":"confidence-rising-uk-construction-sector-rics-reports","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/confidence-rising-uk-construction-sector-rics-reports\/136677\/","title":{"rendered":"Confidence rising in UK construction sector, RICS reports"},"content":{"rendered":"

Despite ongoing financial constraints and the skills shortage, confidence in the UK construction sector seems to be cautiously growing, reports RICS<\/h2>\n

Hopes and confidence for the UK construction sector seem to be growing, as belief in a rate cut in 2024 appears to be supporting greater expectations for the future.<\/p>\n

According to the latest RICS UK Construction Monitor, Q4 2023, most key metrics show caution in the face of moderate upticks.<\/p>\n

Pessimism was alleviated by moderate growth in infrastructure workloads, but housing activity fell.<\/p>\n

Private and public housing workloads deteriorated considerably in Q4<\/h3>\n

Year-long concerns about the housing market continue, with private housing workloads remaining in negative territory (-21%), and public housing dropping by -7% to -14% this quarter.<\/p>\n

Brightening work trends overall were observed, with headline figures now recording a -8% figure, which is marginally stronger than the -10% recorded in Q3. Infrastructure led the charge, with a +9% growth reading.<\/p>\n

Rebalancing pressures around the skills shortage<\/h3>\n

The skills shortage remains a key obstacle to confidence in the UK construction sector.<\/p>\n

High numbers of those assessed reported problems recruiting sufficient skilled trade workers. Demand for quantity and building surveyors was also high.<\/p>\n

Apprenticeships, incentives and a Government-skills taskforce have all been proposed as targets for increased investment to answer the skills shortage<\/a>.<\/p>\n

Younger people specifically could benefit from a dedicated English Built Environment GCSE, which RICS is ready and willing to help develop.<\/p>\n

However, there are positive signs of the industry rising to the need for more training, with +19% report a rise in planned investment in training, which is slightly up on the +17% reported in Q3.<\/p>\n

Anticipated interest rate cuts will also soften adverse conditions<\/h3>\n

Rate cuts in interest in 2024, speculated to be delivered by the Bank of England around the Spring Budget, have led to the<\/p>\n

RICS senior economist Tarrant Parsons said: \u201cAlthough current conditions across the UK construction industry remain relatively subdued, the latest survey feedback shows a gradual improvement in forward-looking sentiment. Supported by the prospect of easing interest rates later this year, overall workloads are anticipated to rise, with respondents anticipating this pick-up will be accompanied by a rise in employment levels across the industry. That said, the challenge around existing skills shortages remains a persistent theme in the Q4 results.”<\/p>\n

You can read the RIC’s analysis of confidence in UK construction here<\/a>.<\/p>\n

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