Activity across Yorkshire and Humber saw a slowdown in the second quarter of the year, according to the latest data
The latest data from the Royal Institution of Chartered Surveyors market survey has revealed a slowdown in construction activity in Yorkshire and Humber during the second quarter of the year.
According to the data some 19 per cent more construction professionals in the region reported they had seen an increase in workloads over the previous three months when compared with 34 per cent in the first quarter of the year.
Private commercial, industry, and housing saw the greatest slowdown, but 27 per cent more contributors reported they had seen an increase in private housing activity. This was down from 45 per cent in the first quarter. Some 25 per cent more saw workloads in the private commercial sector increase rather than fall during the second quarter.
A total of 64 per cent warned for the second successive quarter that the biggest barrier to output was finance. Planning and regulatory delays also impacted the workload of 60 per cent of respondents.
A total of 63 per cent reported a shortage of quantity surveyors and 59 per cent a lack of bricklayers, highlighting that the skills shortage is also having an impact on progression.
The survey was not all bad news, however. Some 27 per cent more respondents said they expect to see activity in Yorkshire and Humber rise, rather than fall. It is expected workload will increase on average by one per cent over the next 12 months—less than the 2.3 per cent predicted in the first quarter.
Employment forecasts were also downgraded from the estimated 1.5 per cent suggested in the first quarter to 0.1 per cent.
Speaking to the Huddersfield Daily Examiner, chairman of the RICS Yorkshire & Humber quantity surveyors and construction group Chris Campbell said: “The recent referendum to leave the EU caused a hiatus in investment for many of our private clients.
“But overall it is too early to estimate or forecast with confidence what impact Brexit will have on the construction sector and when any effect will be felt.
“The market is still buoyant, with good levels of activity; however more skilled professionals and improved funding models would improve it further.”
Simon Rubinsohn, RICS chief economist, said: “The latest results from our construction market survey suggest that the second quarter of the year saw a further moderation in the growth trend which is not altogether surprising given the build-up to the EU referendum.
“Significantly, the biggest issue at the present time alongside uncertainty looks to be credit constraints with over two-thirds of contributors highlighting this issue as a concern.
“Encouragingly, the swift actions of the Bank of England in creating additional capacity for the banking sector to provide funding to meet demand should help alleviate some of this pressure.
“Nevertheless, anecdotal evidence does indicate that the challenge for the British government in establishing a new relationship with the EU could see some investment plans in the construction sector scaled back.”