The August report from RIBA into the state of the industry shows that while architects remain broadly positive about future workloads, confidence has weakened.
The RIBA Future Workload Index fell to +2, down from +9 in July. Current workloads are on average 13% lower than a year ago.
This softer outlook is driven largely by the sharp decline in the private housing sector, which has moved firmly into negative territory, and by a downturn in sentiment among small practices. In contrast, medium and large practices remain firmly optimistic, with the Commercial sector proving resilient.
Staffing expectations remain positive overall, with both permanent and temporary indices still in positive territory, though the balance has weakened compared with July.
Adrian Malleson, RIBA Head of Economic Research and Analysis, said: “The August RIBA Future Workload Index shows a profession becoming more measured in its outlook, with the headline figure falling to +2, down from +9 in July. While this still indicates overall growth expectations, the fall reflects growing concern, particularly for the private housing sector, and among smaller practices.
“The sector-specific data is the most concerning. While the commercial sector, a significant source of revenue for medium to large practices, is proving resilient, the private housing sector, the largest revenue source for smaller practices, has shown a sharp decline. The public and community sectors have also slipped into negative territory.
“Commentary this month is downbeat, with practices reporting a slowdown in project activity and enquiries. Downward pressure is coming from rising costs, weak client confidence, a stagnant economy, and regulatory burdens, especially the Building Safety Act. Planning delays remain a major barrier.
“Nevertheless, some practices are cautiously optimistic, expecting workloads to improve after the summer. Recruiting to meet demand remains a challenge for some.”
