Surveyors Expect 2025 Growth for Construction Industry

SURVEYORS are expecting growth with a promising outlook for UK construction as it heads into 2025.

According to the Royal Institution of Chartered Surveyors (RICS) survey of its members, a  net balance of +28 predict an increase in workloads over the next 12 months. This matches sentiment seen in the previous quarter and highlights sustained optimism for growth in the sector.

In particular, the infrastructure sector is expected to lead robustly. Although slightly lower than Q2’s projections, a net balance of +30 of respondents anticipate increased activity in infrastructure development.

The private residential sector has shown a notable rise in confidence, with +26 of participants predicting growth. This is an improvement from the +12% average reported over the past 4 quarters. Additionally, private non-residential construction is projected to pick up momentum by a net balance of +17 of respondents.

Employment

When asked where the industry is seeing significant skills shortages, respondents cited bricklayers (37%), carpenters (33%) and plumbers (33%) as the most depleted roles currently. Shortage of general labour (44%) was seen as one of the top factors limiting construction activity.

However, the general outlook for employment remains positive. A net balance of +18% of survey respondents forecasted an increase in employment over the next year.

Financial constraints were cited as another top factor limiting activity (61%). The view is in keeping with a still generally tight credit environment. That said, there seems to be scope for a modest improvement next year given anticipated cuts in policy interest rates. A net balance of +11% of respondents expect an easing in credit conditions.

RICS Senior Economist, Tarrant Parsons, said: “These results show some encouraging signs of improvement for the UK construction industry as we move into the final quarter of the year.

“While growth prospects for the next twelve months appear to be brightening, challenges persist, particularly around tight profit margins across the industry and ongoing skills shortages. Industry professionals anticipate an improvement in credit conditions over the year ahead, which should provide a much-needed boost to industry confidence.”

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