RICS quarterly report summary on the UK Property Market

The Royal Institute of Chartered Surveyors (RICS) produces a quarterly report on the UK economy and property market.  We know you are busy so we've drawn out the key points for you to digest and think about when you are running your business.

•  One of the measures used is housing starts, Quarter 2 saw the total reach 38,000 which is at a pre-recession high which is great news as the
• Private housing has been the primary driver of growth in the construction industry, up 18% in the year to Quarter 2.

So what does this mean for you?

With the continued growth in the market, production of materials hasn't quite had chance to catch up yet with demand. This has created supply bottlenecks in relation to materials, which we are sure you have noticed when you are picking up your materials - indeed there has been a 63% increase in imports for red bricks to meet demand! Around 60% of RICS Construction Survey respondents highlighted shortage of materials as an issue.

The graph below makes an interesting read!: 

Along with the shortage of materials, there has also been reports of skills shortages across the trade, making it even more important to keep your contractors on side and on site. 

However, employment prospects for the sector remain firm, as the industry gets to grips with meeting rapidly rising demands from a historically low base.

Alan Muse, RICS Director of Built Environment stated in an earlier article: 

“...The good news is that there is reason for optimism, with workloads, profits and employment all forecast to deliver growth over the next 12 months and it is now the responsibility of industry to invest in training and technology to ensure it capitalises on these opportunities.”

HBXL’s suite of software is the perfect partner in assisting you to capitalise on the opportunities available to you and to manage the increasing costs of materials, labour and output. Why not speak to one of the team today to discuss how it could help you by contacting us on 0845 1234 065.

So all in all, the outlook for the construction sector remains positive and we can hope to see a meaningful rise in workloads, employment and profit margins over the next twelve months.

Happy building!