According to the latest RICS UK Construction Monitor, overall activity was broadly the same in the second quarter but the outlook for the coming months is improving.

A net balance reading of zero was recorded in the second quarter, with overall construction activity the same as the preceding period.

A net balance of over 25 respondents are expecting increased workloads over the next year, with infrastructure projects anticipated to drive this.

Private residential development is already expected to pick up, with the strongest outlook since 2022 with a +25 net balance. This is currently at -2 levels.

However, 47% of respondents cited a lack of surveyors as the most prevalent skills gap they face. Labour shortages were not as severe as previous quarters, but still registered as a significant concern for +45 of respondents.

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Financial constraints were deemed the largest barrier to industry growth, impacting +61 of respondents. Planning and regulatory issues followed closely, impacting +58 of businesses.

“The overall tone of the feedback received to the Q2 RICS Construction Monitor is still pretty flat, although the forward-looking indicators are a little brighter even in the area of residential development, possibly reflecting some of the ambitious talk from the new government about ‘getting Britain building’,” said Simon Rubinsohn, chief economist at RICS.

“However, there are some major challenges identified by respondents that need addressing to secure the more meaningful uplift in both housing and infrastructure that appears to now be the focus of policy.

“In particular, planning reform was very much front and centre in many of the remarks from a large number of contributors, and it will be interesting to see the impact in our figures of this week's planning and housing announcements.”