RICS say house construction at lowest level for two years

A survey conducted by the Royal Institution of Chartered Surveyors (RICS) has revealed that construction in the private housing sector is at its lowest rate since the second quarter of 2013.

The findings of RICS’ UK Construction Market Survey will come as a blow to the government who have committed to building 200,000 new homes by 2020.

The poll results show only 36% more respondents noted an increase rather than a drop. In comparison, the figure was closer to 50% in the first quarter of 2015.

Across all sectors of the construction industry, 33% more reported an increase in workloads than a fall during Q4 of 2015. The first quarter of 2016 saw the figure fall 5%.

There was also a significant drop in confidence from the industry with those respondents expecting an increase in workload over the next 12 months outweighing those predicting a decrease by 55%. The same period last year saw 79% more respondents expected to see a rise in work.

RICS Chief Economist, Simon Rubinsohn, said while the government has made “significant commitment” to building new homes, it needed to do more to free up land and not just rely on the construction of new starter homes.

He commented: “We have long held the view that starter homes cannot be the only solution. There is an issue around the availability of land on which new houses can be built, and we would like to see more being done to free up private brownfield sites.

“Our survey tells us that planning delays are one of the biggest barriers to growth in the construction sector. We have recommended that councils work together to create a team of emergency planners who can parachute into boroughs that are experiencing significant delays, therefore reducing a major growth barrier.

The uncertainty generated by the upcoming European Union referendum is also cited as a possible factor in the slowdown. Mr Rubinsohn said: “We know that a range of sectors have been affected by these issues as investors look to delay any decisions until a final outcome has been determined, and construction is no exception.”

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