The Royal Institute of British Architects (RIBA) has published its latest report on architecture business and employment trends, RIBA Future Trends December 2024.
The report shows that over the next three months, architects continue to expect falling workloads but are less pessimistic than in the previous month. Staffing levels are expected to increase.
In his commentary, Adrian Malleson, RIBA Head of Economic Research and Analysis, said: "The profession is pessimistic about future work, with all sectors and most regions anticipating falls to come. However, architects' sentiment about future workload recovered slightly this month from the post budget slump we saw in November.
“Practices remain challenged by external forces. Planning delays continue to hamper project progress, raised interest rates to deter client investment, and regulatory requirements are increasing. At the same time, costs are on the up, as inflationary pressures continue, wages rise, and employer’s National Insurance Contributions (NICs) are set to increase. Any future increase in spending on housing or public sector buildings isn't yet reflected in the sectoral outlook.
“The Staffing Index gives a source of hope, however. Practices, on balance, expect growth in permanent staffing levels, indicating some expectation of a better longer-term outlook and future practice growth.
“Commentary received from practices in December describes a market that has slowed following the recent budget. Some practices describe new enquiries and the market slowing, post-budget, and some are pausing recruitment because of the planned increase in employer NICs. Practices also describe the year ending with familiar and ongoing challenges, including raised interest rates, project cost pressure, poor client confidence, planning delays, increased regulatory burden, and intense fee competition.
“Nevertheless, some practices describe thriving businesses, with increased enquiries, full workload, new staff being recruited, and sustainable fee income."
