UK construction workload decline eases in Q2, says RICS
Summary
RICS reports that UK construction workloads improved slightly in Q2 2026, but overall activity remained negative for a fifth consecutive quarter. Infrastructure was the strongest area, while private housing remained the weakest, with respondents still citing regulatory barriers, Building Safety Regulator issues, labour shortages and material cost pressures.
Why it matters
For residential property surveyors, the findings point to ongoing delivery constraints in private housing and social housing pipelines, which can affect project timelines, viability and market supply. The continued mention of regulatory barriers and Building Safety Regulator delays is also relevant to due diligence, programme risk and client expectations.
Key points
- Overall construction workloads improved to -4% in Q2 from -12% in Q1, but remained in negative territory.
- Infrastructure was the strongest sector, with a net balance of +16%, led by energy, water and sewage, rail and roads.
- Private housing remained the weakest sector at -12%, though this was better than -19% in Q1.
- Respondents continued to cite regulatory barriers and Building Safety Regulator-related delays as constraints on development timelines.
- Labour shortages and material shortages worsened, adding pressure to costs and profit margins.
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