Overall workloads showed little change in Q4, with the headline net balance improving slightly to -6%, continuing a prolonged period of subdued conditions across much of the sector.

Private housing activity weakened again in Q4, whilst private commercial and industrial workloads, despite marginal improvement, stayed firmly in negative territory. Public housing showed some signs of stabilisation but continued to contract overall.

Financial constraints and planning pressures remain the dominant headwinds facing the industry. Around six in ten respondents cited financial constraints as a key barrier to activity – whilst planning delays were reported by a similar proportion. Credit conditions remain tight, although sentiment has improved modestly, particularly in the twelve-month outlook.

Commenting on the latest data, RICS chief economist, Simon Rubinsohn, said: “The 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. The forward-looking metrics are a little more positive with workloads seen as likely to accelerate most notably in infrastructure driven by a pronounced increase in activity in the energy generation and distribution area as well as water.

“However, any pick-up in housing development is likely to be relatively modest and way short of what would be required to get anywhere near approaching the 1.5 million home target. While the passage of the Planning and Infrastructure Bill is seen as helpful for housebuilders, on its own it is not going to be sufficient to meaningfully move the dial.”