Architects’ Outlook Improves in August but Planning Delays Continue

ARCHITECTS continue to expect higher workloads and staffing levels, and their outlook has improved since July.

However, delays in processing planning applications continue to hinder projects.

This is according to the latest Future Trends Survey published by the Royal Institute of British Architects (RIBA).

Increasing Workloads  

In August, the RIBA Future Trends Workload Index rose by 1 point to +2, indicating that architects expect workloads to increase overall.

Over the next three months, 23% of practices expect workloads to increase, 21% expect them to decrease, and 55% expect them to stay the same.

The outlook for small practices improved while medium and large practices remain very optimistic at +33.

The regional picture remains mixed, with the South of England and the North of England improving most. The Midlands and East Anglia are still positive, while confidence among practices in London recovered somewhat. Wales and the West saw a deteriorating picture.

The outlook for the Commercial sector fell by 1 point but remained positive for the fourth consecutive month, the longest sustained stretch of optimism since June 2022. Meanwhile, the outlook for the Private Housing sector rose by 1 point, leaving negative territory after over a year of pessimism. The Community sector held steady, and the Public sector fell by 1 point.

More Recruitment

In August, the RIBA Future Trends Permanent Staffing Index rose by 3 points to +5. The positive figure indicates that more practices intend to increase staff numbers than reduce them, and the improvement from last month suggests growing confidence in long-term prospects.

Planning Delays Continue

In light of the Government’s intention to reform the planning system, this month’s RIBA Future Trends survey once again confirmed that planning delays continue to cause projects to be delayed or abandoned, despite lessening slightly since 2023.

In summary:

• 19% of practices who responded report projects being abandoned in the last three months, compared with 22% in 2023 and 7% in 2021.
• 57% report projects being delayed by between one and six months, compared with 59% in 2023 and 60% in 2021.

The graph plots the effects of delays in the processing of planning applications:

Adrian Malleson, RIBA Head of Economic Research & Analysis

RIBA Head of Economic Research and Analysis, Adrian Malleson said: “Summer can be a quiet period, but workloads may increase as the year progresses. Practices report persistent issues including elevated interest rates, competition for architectural services from outside the profession, cash-flow challenges, and planning delays.

“Overall, the speed with which planning applications are processed continues to hold back architects, the economy, and the creation of the buildings our county needs.”

>> Read more architect news