The Royal
Institution of Chartered Surveyors (RICS) Q2 2025 UK Construction Monitor
offers a mixed but cautiously optimistic snapshot of the nation’s construction
sector.
While overall
workloads remain broadly flat, twelve-month expectations point to modest growth
ahead, particularly in infrastructure.
The headline net
balance for total construction workloads edged down slightly to -3%, from -1%
in Q1. Infrastructure continues to outperform other areas, with a robust net
balance of +11%. Within infrastructure, energy and water/sewage projects lead
with +34% and +27%, respectively.
Repair and
maintenance remains a relative bright spot at +5%, while new work saw a slight
dip to -5%.
Forward-looking
sentiment is positive, with +17% of respondents expecting higher workloads over
the next year. Private residential and non-residential work are expected to see
moderate gains, with net balances of +15% and +9%, respectively.
Whilst the
outlook seems brighter than the present, respondents noted several key factors
stifling momentum. Planning and regulatory delays were cited as the top reasons
holding back construction activity with 61% of respondents listing it as a key
issue. Furthermore, labour shortages persist for 39% of respondents, whilst
some respondents note planning delays caused by confusion surrounding the
Building Safety Act and called for clearer processes and better resourcing of
the Building Safety Regulator.
RICS recently
gave evidence in a UK Parliament Select Committee and highlighted concerns
about the BSR in the current regulatory environment.
RICS Head of Professional Practice, Gary Strong FRICS, said: “The Building
Safety Regulator (BSR) must work with industry to provide clearer guidance and
consistent decision-making. RICS members have highlighted inconsistencies
across the regions in how the rules are interpreted by the BSR, which is
undermining confidence in the regulatory system and causing delays.
“There are not
enough building control professionals in place, which is causing a growing
backlog of applications. The BSR must be adequately resourced to meet the
demands of the new regulatory environment, and a swift programme of upskilling
professionals enacted.
“We welcome that
the UK Government identifies this as a primary bottleneck for construction
projects, and a new fast track process is being put in place. Failing to tackle
this will significantly hinder the Government’s ambitious housebuilding targets
alongside the necessary new infrastructure needed to support them.”
RICS Chief Economist, Simon Rubinsohn, said: “The underlying tone in the
construction sector remains subdued according to the latest feedback from RICS
members. There is a little more positivity looking forward but the indicators,
at this point, are consistent with a modest rather than material uplift in
development.
“Given that
planning continues to be viewed as the major factor hindering the industry from
upscaling its building programme, it is quite conceivable that the passing of
the Planning and Infrastructure Bill will in due course see industry
expectations move onto a firmer footing. That said, the need to ensure the
building safety regime works more smoothly is also highlighted quite widely in
the survey as a factor that would likely impact the pace of development.
“The other big
challenge remains around skills. While typically much of the conversation is
focused of shortages of trades such as bricklayers and plumbers, the RICS
survey highlights recruitment issues amongst professionals involved in the
construction industry with building control surveyors and quantity surveyors in
short supply.”
