OVERALL construction activity in Scotland remained ‘relatively subdued’ through the first quarter of the year, according to the latest Royal Institution of Chartered Surveyors (RICS) Construction Monitor.
In more positive news, housebuilding activity appears to have risen.
A net balance of 3% of survey respondents reported a rise in construction workloads in Scotland in Q1 2026, up slightly from the -4% in the last quarter of 2025. Scotland is also the only UK region to see this balance in positive territory.
Private industrials, infrastructure and private commercial were all seen to be broadly flat whilst other public works saw a fall in activity. Housebuilding saw a rise in workloads across both public and private sectors.
A net balance of 10% of Scottish respondents expects overall workloads to rise over the next year, down from the 24% seen in Q4 2025.
However, with the impact of geopolitical challenges on inflation, the outlook for profit margins appears to have worsened. A net balance of -20% of respondents anticipate profit margins will fall over the next year.
Surveyors in Scotland continue to report skills shortages, with 51% of respondents noting a shortage of quantity surveyors, 41% reporting a shortage of bricklayers, and 46% highlighting a shortage of other construction professionals.
Shirley Thomson of BDG Thomson Gray Ltd in Aberdeen said, “Lack of certainty of funding for affordable housing.”
Stuart Ferris, DM Hall LLP in Glasgow added that there’s “high demand and low availability of contractors for specific sectors or specialised types of work.”
Commenting on the UK picture, RICS chief economist, Simon Rubinsohn, said, “The impact of the war in the Middle East is clearly visible in the Q1 RICS Construction Monitor. Rising material costs, a tougher credit environment and increased pressure on margins are already leading some developers to slow construction activity.
“More significantly, plans for the next twelve months are being scaled back most notably in the private sector. Expectations around housebuilding are now flat which aligns with the comments from leading housebuilders in their recent trading updates and results statements.”
