Construction workloads in Wales continued to rise in the second quarter of the year according to latest reserch from the Royal Institution of Chartered Surveyors (RICS).
The rise was underpinned by activity in both public and private housing.
A net balance of 22% of surveyor in Wales reported a rise in overall construction activity - the highest it has been since early 2022. This includes increases in both public and private sector housebuilding activity, with a net balance of 38% of respondents noting a rise in public housing - mainly via house associations - workloads and a net balance of 24% reporting a rise in the private sector.
Looking at the other subsectors, ‘other public works’ (a net balance of 13%), private commercial (a net balance of 29%) and infrastructure (a net balance of 11%) workloads saw increases in activity, whilst the private industrial sector was the only one to see a decline, with a net balance of minus 25%.
Surveyors in Wales also remain optimistic about future workloads, according to the research, but less so than seen previously. A net balance of 14% of respondents expect an increase over the next year, which is down from the 20% that was reported in the first quarter of the year.
ON profit margins surveyors expect that them to be flat over the next 12 months. Whilst this figure is subdued, it is up from the net balance of minus 7% that was reported in the survey previous.
Welsh surveyors continue to report shortages in skilled workers. Moroever, some 58% report a shortage in quantity surveyors, 46% noted a shortfall in other construction professionals and 47% reported a deficit in bricklayers.
Sam Rees, interim head of public affairs Ƶ&I at RICS added:“It’s encouraging to see construction activity picking up in Wales and housing being the main driver. This was also evidenced in National House Building Council’s most recent quarterly report which also shows a rise in the number of new homes registered in Wales. However, it is important to note that even with an uplift in activity, there is still much progress to be made in building enough homes to meet housing need. The Welsh Government has an ambitious target of creating 20,000 homes by next year, and it’s hoped this momentum can continue, particularly in regard to social and affordable housing.”
