Housebuilding across the UK is continuing to pick up with chartered surveyors again reporting growth, according to the latest RICS (Royal Institution of Chartered Surveyors) construction market survey.
During the third quarter of the year, 41 per cent more respondents reported rises in privately-funded housing projects compared with the previous period (from +31 per cent in quarter two). According to RICS, this is significant because it is the first time that every part of the UK has reported growth since the start of the market crash six years ago. The Institution says this demonstrates that the long-awaited increase in the number of new homes may finally be underway.
In the three months to September, the construction sector was boosted by workloads rising at their strongest rate since the summer of 2004 (net balance +31 per cent). Alongside housebuilding, this growth was largely driven by private commercial and industrial developments as funding finally begins to filter through. RICS says this will prove welcome news to an economy that has seen construction struggle considerably for some time.
There was also good news for employment prospects, with a net balance of +49 expecting more jobs to be created in the sector over the next 12 months. However, this improving picture for employment is already being reflected in a jump in reported skill shortages, highlighting the potential for capacity issues if the recovery continues to gather pace.
Surveyors are expecting a sharp increase in business activity during the next twelve months. 71 per cent of respondents see the volume of work picking up speed, with output likely to rise by almost four per cent over the period. This optimism was also reflected in positive predictions for company profits.
RICS Chief Economist, Simon Rubinsohn, said: 'While it's certainly good news that construction - and especially housebuilding - is finally on the rise right across the UK, we are certainly not out of the woods yet. Critically, we're still way behind in terms of building enough homes to meet the nation's growing housing need and overall construction projects are at a historical low.'
He continued: 'In the face of this challenge, it is particularly concerning that we are already receiving reports of some skill shortages as well as capacity constraints for some building materials such as bricks.'
