RIBA has published its latest report on architecture business and employment trends, RIBA Future Trends March 2025.
The report shows that practices are largely optimistic about future workloads, and the sectoral outlook is improving.
However, practices are braced for rising costs expected in April. March's data also precedes the global market turmoil caused by the introduction of trade tariffs by the US President.
March's Future Trends sees the profession's outlook for future work become increasingly positive. The RIBA Workload Index rose by two balance points to +7, up from February's figure of +5.
All regions now expect workloads to grow. The outlook for three of the four monitored work sectors has improved, with increasing workloads expected in the Residential and Commercial sectors.
Adrian Malleson, RIBA Head of Economic Research and Analysis, said: “March's data is, on the face of it, encouraging. Practices in all regions are optimistic about future workloads. The sectoral outlook is improving, with increasing optimism for the Housing and Commercial sectors, and reducing pessimism in the Community sector.
“The announced increase in government capital spending, the expectation of increased housing construction, and the intended reform of the planning system may improve future workloads.
“The +7 Workload Index of March 2025 compares well with the zero figure of March 2024.
“After a challenging 2024, it looks as if the first quarter of 2025 sees a corner turned, with an increasingly positive outlook for the coming three months.
However, global uncertainty and the market turmoil created by the introduction of trade tariffs cast a shadow over March's optimism.
“Heightened uncertainty is likely to reduce client willingness to commission new projects. The RIBA will continue to monitor developments closely.
“Commentary received from practices in March gives a mixed picture. Some practices describe a flat or suppressed market, with the ongoing challenges of planning delays and fee pressure. Practices have also highlighted the increased costs they, contractors, and clients will face in April.
“Other practices offer a more upbeat assessment of the current market, describing areas of growth in the residential market, increased enquiries, and rising hope for 2025.”
