Financial uncertainty, regulatory modifications and planning delays have all brought on building exercise to decelerate throughout the UK within the third quarter of 2025, the RICS UK Development Monitor analysis discovered.
The headline building workloads indicator fell to -8%, whereas new undertaking workloads fell by -13%, signalling a cooling of exercise.
Profitability is a priority, with expectations for revenue margins falling deeper into detrimental territory (-19%), reflecting price pressures, aggressive tendering, and extended regulatory processes.
Corporations are struggling to recruit expert trades {and professional} roles, although 21% of companies noticed internet hiring development in Q3.
Simon Rubinsohn, chief economist at RICS, mentioned: “Challenges across the present planning regime proceed to be cited by respondents to the survey alongside financials however an absence of demand can also be being raised extra often. Regardless of this, the abilities difficulty stays pertinent with a scarcity of amount surveyors persevering with to be highlighted.
“This chimes with the outcomes of the not too long ago launched RICS Surveying Abilities Report which not solely factors to capability constraints but in addition attracts consideration to the affect this scarcity is having on innovation within the trade.”
Modest enhancements are anticipated within the subsequent 12 months, with infrastructure main development expectations at +24%, down from +34%. Personal residential and industrial expectations are muted.
