Building work cools as finances remain tight

Construction work has cooled across Scotland as access to capital remains constrained.

Businesses are continuing to hire. Picture: Rui Vieira/PA Wire

The latest Rics Construction and Infrastructure Market Survey – released today – found a net balance of 7 per cent more chartered surveyors in Scotland reported their workloads had risen rather than fallen in the second quarter of the year, down slightly on the 11 per cent figure in the first three months of 2018.

The most significant impediment to work was financial restraints, with 80 per cent citing difficulties in accessing bank finance and credit, cash flow and liquidity challenges or less favourable cyclical market conditions.

However, 39 per cent more respondents expect activity to rise in the construction market rather than fall over the next year.

Jeffrey Matsu, senior economist at Rics, said: “With businesses continuing to hire to meet pent-up demand, the effects of any uncertainty generated by Brexit or recent market events, including Carillion, may only become more evident in the longer-term.”