Construction workloads hit 12-year low

Growth in construction orders fell to its lowest level since 1996 in the first quarter, according to the latest survey by the Royal Institution of Chartered Surveyors (RICS).

A slowing housing market and the credit crunch were blamed for the results, which show that 20% of surveyors experienced a drop in workload in the first three months of 2008.

Announcing the survey's findings, Building magazine reported that private housing was the worst hit sector, with workload growth turning negative for the first time in nine years. It said the fall was mainly due to a downturn in the North, although private housing weakened in all regions and is now static in London and the South East, Wales, the Midlands and Northern Ireland.

Profit expectations for surveyors fell of the second time in the survey's history, while confidence in increasing future workloads fell for the fifth consecutive quarter.

Construction News reported RICS' call to London mayoral candidates to examine the current 50% housing affordability target if selected, hoping to strengthen the sector's future. A manifesto presented to representatives of each contender last week claimed the present target could further weaken the market.