{"id":537559,"date":"2026-02-05T00:01:04","date_gmt":"2026-02-05T00:01:04","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=537559"},"modified":"2026-02-04T17:47:10","modified_gmt":"2026-02-04T17:47:10","slug":"construction-activity-remains-flat-but-infrastructure-does-the-heavy-lifting-says-rics-report","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/buildings\/construction-activity-remains-flat-but-infrastructure-does-the-heavy-lifting-says-rics-report-05-02-2026\/","title":{"rendered":"Construction activity remains flat, but infrastructure does the heavy lifting, says RICS report"},"content":{"rendered":"

Construction activity in the final quarter of last year remained subdued, although infrastructure and public housing workloads saw some improvement, according to the latest Construction Monitor<\/em> from the Royal Institution of Chartered Surveyors (RICS).<\/p>\n

Overall workloads barely moved in Q4 of 2025, with the headline net balance marginally improving from -8 per cent in Q3 to -6 per cent.<\/p>\n

The net balance is calculated as the percentage of survey respondents reporting an increase, minus that reporting a decrease.<\/p>\n

The Q4 balance \u201cextends the recent run of broadly flat readings, pointing to subdued conditions persisting for several consecutive quarters\u201d, the RICS report said.<\/p>\n

Once again, the infrastructure sector proved to be the star player, with a net balance of workloads strengthening from 8 per cent to 12 per cent.<\/p>\n

Within infrastructure<\/a>, the energy sub-sector led the way with the net balance up from 29 per cent in Q3 to 41 per cent in Q4.<\/p>\n

Rail<\/a> was more sluggish, although improved, showing net balance of 1 per cent, having moved up from -5 per cent in Q3 of 2025.<\/p>\n

Public housing also saw a distinct improvement, despite remaining in contraction (below zero), with the net balance of workloads rising from -12 per cent in Q3 to -4 per cent in Q4. However, private housing dipped further, falling to -12 per cent in Q4, compared with -10 per cent in Q3.<\/p>\n

\u201cThe latest results provide little sign of a broad-based uplift in activity in the construction industry, with respondents continuing to draw attention to challenges around planning and the building safety regime in particular, as well as viability related issues,\u201d said RICS chief economist Simon Rubinsohn.<\/p>\n

Carl Miller, director at Basesixty, said the subdued figures could be due to the building safety regime.<\/p>\n

\u201cThe Building Safety Act is a significant negative impact on the industry,\u201d he said. \u201cIt wastes resources, money and has overburdened professionals with liability, frustrating decision making. The BSR<\/a> [Building Safety Regulator] has frustrated work on high-risk buildings.\u201d<\/p>\n

Meanwhile, Abayomi Bola, director at YB Associates, said the \u201cdecreasing number of competent contracting firms is greatly affecting construction costs leading to [an] uncompetitive market\u201d, and Ben Stalham, a director at WSP, said contractors were \u201cbeing expected to take on too much risk\u201d.<\/p>\n

Tight credit conditions as well as planning and regulatory pressures were cited by respondents to the RICS monitor as reasons for the general sluggishness of the construction sector.<\/p>\n

The share of respondents who said that financial constraints continued to be a significant obstacle to activity across the sector was little changed at 60 per cent in Q4, compared with 61 per cent in Q3.<\/p>\n

Delays linked to the BSR and issues surrounding labour and skills shortages were also cited as problems holding back growth.<\/p>\n

Nick Wdowczyk, director at GWB Consultants, said: \u201cFinancial viability on projects is still a challenge on construction projects,\u201d while Martin Trimble, managing director at Magnitude Quantity Surveyors, noted that planning delays remained a \u201cmajor constraint on market confidence in 2025, extending programmes, increasing holding costs and reducing pipeline certainty\u201d.<\/p>\n

Looking forward, the RICS monitor sees a slightly firmer picture, with the headline workload-expectation metric climbing from a net balance of 9 per cent to 17 per cent, supported by infrastructure.<\/p>\n

\u201cInfrastructure continues to lead the outlook, with expectations strengthening further from 24 per cent to 32 per cent, reinforcing its role as the key growth driver over the year ahead,\u201d the report said.<\/p>\n

However, Rubinsohn added that any strength in housing development was likely to be modest and \u201cway short of what would be required to get anywhere near approaching the 1.5 million homes target\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"

Construction activity in the final quarter of last year remained subdued, although infrastructure and public housing workloads saw some improvement, according to the latest Construction Monitor from the Royal Institution of Chartered Surveyors (RICS). Overall workloads barely moved in Q4 of 2025, with the headline net balance marginally improving from -8 per cent in Q3 …<\/p>\n","protected":false},"author":155754,"featured_media":494796,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[547,552],"tags":[],"class_list":["post-537559","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buildings","category-financial"],"yoast_head":"\nConstruction activity remains flat, but infrastructure does the heavy lifting, says RICS report | Construction News<\/title>\n<meta name=\"description\" content=\"Construction activity in the final quarter of last year remained subdued, although infrastructure and public housing workloads saw some improvement,\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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