Political Challenges Continue to Impact NI's suffering Construction Sector

However, the one sector that stood out from a positive perspective was private sector house building, with a netbalance of 29 percent of NorthernIreland respondents pointing to rising workloads in this area, which was above the UK average.Public housing, public non-housing and infrastructure all continue to see declines in activity however, along with commercial construction activity.As a result, Northern Ireland was one of only two UK regions where the balance of surveyors reported an overall decline in workloads. Once again, Northern Ireland was also the only region where surveyors reported business enquiries falling.Comments from surveyors suggest that the current political landscape, with no local administration operating and Brexit uncertainties, have lent to the present situation as public spend is limited and investors are proceeding with caution.

On a slightly more positive note - at the end of 2018, the 12-month outlook in terms of workloads was flat but this has risen to a more positive level, albeit below the UK average.

On the other hand, Northern Ireland is the least optimistic in terms of 12-month forecasts for employment prospects and profit margins.

Jim Sammon, RICS Northern Ireland Construction spokesman, said: “House building remains the positive story, but the local construction sector continues to be faced with an unsettling overall picture, particularly regarding public-funded work. “Northern Ireland continues to feel the effects of the challenging political circumstances, and whilst te imminent threat of a no-deal Brexit has clearly receded, investors appear to be continuing to proceed with some caution,” he adds.

David Jones, Head of Real Estate, Tughans said: “The challenging, and much publicised, retail landscape is no doubt reflected in the drop in private commercial activity, and it is no surprise that the political situation continues to be felt regarding work that is dependent on public funding.”

“Private house-building, on the other hand, continues to be an area of real strength in the market with the demand for new build properties. But those in the sector will be hoping for more widespread growth in the quarters ahead, and to see more decisions being made around public investment in infrastructure and other projects”, he adds.