The Royal Establishment of Chartered Surveyors (RICS) describes its Q2 2025 UK Building Observe as “a blended however cautiously constructive snapshot of the country’s development sector”. Whilst total workloads stay extensively flat, 12-month expectancies level to modest enlargement forward, specifically in infrastructure.
The headline web steadiness for overall development workloads edged down fairly to -3%, from -1% in Q1. Infrastructure continues to outperform different spaces, with a strong web steadiness of +11%. Inside of infrastructure, power and water/sewage initiatives lead with +34% and +27%, respectively.
Restore and upkeep stays a relative vibrant spot at +5%, whilst new paintings noticed a slight dip to -5%.
Ahead-looking sentiment stays certain, with +17% of respondents anticipating upper workloads over the following yr. Personal residential and non-residential paintings are anticipated to look average good points, with web balances of +15% and +9%, respectively.
Whilst the outlook turns out vibrant sufficient, respondents famous a number of key components stifling momentum. Making plans and regulatory delays have been cited as the highest causes conserving again development task with 61% of respondents list it as a key factor. Labour shortages persist for 39% of respondents, whilst some respondents be aware making plans delays brought about through confusion surrounding the Construction Protection Act and known as for clearer processes and higher resourcing of the Construction Protection Regulator.
RICS head {of professional} follow Gary Sturdy stated: “The Construction Protection Regulator (BSR) will have to paintings with business to offer clearer steerage and constant decision-making. RICS individuals have highlighted inconsistencies around the areas in how the principles are interpreted through the BSR, which is undermining self belief within the regulatory device and inflicting delays.
“There don’t seem to be sufficient constructing regulate pros in position, which is inflicting a rising backlog of programs. The BSR will have to be adequately resourced to fulfill the calls for of the brand new regulatory surroundings, and a swift programme of upskilling pros enacted.
“We welcome that the United Kingdom executive identifies this as a number one bottleneck for development initiatives, and a brand new speedy observe procedure is being installed position. Failing to take on this will likely considerably impede the federal government’s bold house-building goals along the essential new infrastructure had to enhance them.”
RICS leader economist Simon Rubinsohn stated: “The underlying tone within the development sector stays subdued in line with the most recent comments from RICS individuals. There is a bit more positivity browsing ahead however the signs, at this level, are in line with a modest quite than subject matter uplift in building.
“For the reason that making plans remains to be considered as the foremost issue hindering the business from upscaling its constructing programme, it’s fairly possible that the passing of the Making plans and Infrastructure Invoice will sooner or later see business expectancies transfer onto a more impregnable footing. That stated, the wish to be certain the constructing protection regime works extra easily could also be highlighted fairly broadly within the survey as an element that may most likely have an effect on the tempo of building.
“The opposite giant problem stays round talents. Whilst usually a lot of the dialog is concentrated of shortages of trades akin to bricklayers and plumbers, the RICS survey highlights recruitment problems among pros concerned within the development business with constructing regulate surveyors and amount surveyors briefly provide.”
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