Building sector set to turn the corner this year

This article was taken from Yorkshire Post and can be read in full by clicking the link.

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Chartered surveyors are predicting the UK construction market will “turn a corner this year” as output slowly increases.

The Royal Institution of Chartered Surveyors’ (RICS) construction market survey said Yorkshire’s construction market is “expected to turn a corner this year”, with chartered surveyors predicting an increase in output.

Twenty five per cent more surveyors quizzed in the final three months of 2012 said they expect workloads to increase over the coming 12 months after a tough year for the building sector.

Reported workloads also grew slightly in the fourth quarter, the survey showed. A net balance of ten per cent more respondents said activity had increased, with the biggest gains seen in private housing and private commercial development.

However, 91 per cent of surveyors said financial constraints are holding the sector back ,with about two thirds citing insufficient demand. Seventy per cent also claimed weather hampered a recovery in the sector.

RICS Yorkshire and Humber construction spokesman, Ian Tomlinson of , said there remains a dearth of big schemes in the region.

“The local construction industry has been boosted by Trinity Leeds shopping centre but it is not clear what will replace it,” he said.

“Progress at Westfield in Bradford would be a boost, but in isolation this is not enough.

“We need increased spending across both public and private sectors. New government plans for education and housing spending only scratch the surface of what is needed.”

Last month’s agents’ report from the Bank of England showed construction output declined through 2012 and remained at low levels.

Agents said some regions were starting to see a stabilisation in the rate of decline, reflecting a “modest improvement” in private sector activity in some areas, but this was partially offset by the continued fall in public sector demand.