The construction market is expected to turn the corner in Yorkshire and Humber this year, but any recovery won’t get out of first gear, according to the latest Royal Institution of Chartered Surveyors’ survey of the construction market.
Surveyors expect workloads to grow over the coming 12 months, following a small increase in reported workloads in the final three months of 2012.
Nine out of 10 surveyors believe financial constraints are holding the industry back, while two thirds say there is insufficient demand.
RICS Yorkshire and Humber construction spokesperson Ian Tomlinson said: “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. It remains to be seen the quality of the facilities that the new target building rates translate into.”
RICS chief economist Simon Rubinsohn added: “After a truly dreadful year, if one believes the official data, there are signs that 2013 will bring some better news for the construction sector.
“Critically, competitive pressures in the sector remain intense which is continuing to erode profit margins. Financing constraints are still an issue although the Funding for Lending Scheme should help to ease this challenge.”