OVERALL construction activity in Scotland was ‘relatively stagnant’ in the second quarter of 2026, according to the latest Royal Institution of Chartered Surveyors (RICS) Construction Monitor, despite a rise in infrastructure activity.
A net balance of -2% of survey respondents reported a fall in construction workloads in Scotland, down from the net balance of 3% seen in the Q1 survey.
However, infrastructure activity increased during the period with a net balance of 27% of respondents reporting a rise, up from the net balance of 2% seen in the previous quarter. Public housing activity also increased (a net balance of 13%), as did ‘other public works’ activity (a net balance of 5%). Activity across the private industrial and private commercial sectors was reported to have fallen broadly flat whilst private housebuilding activity saw a decline (a net balance of -20%).
More optimistically, a net balance of 10% of Scottish respondents expects overall workloads to rise over the next year. However, there is still pressure on profit margins, albeit not as much as reported previously. Surveyors in Scotland anticipate profit margins will fall broadly flat over the next year.
Surveyors in Scotland report that skills shortages have worsened. 60% of survey respondents noted a shortage of quantity surveyors, 44% reported a shortage of bricklayers, and 47% report a shortage of other construction professionals.
Ian Differ of CBA QS Ltd in Glasgow said, “Construction inflation, material price volatility, and increased uncertainty due to the introduction of steel tariffs are the main challenges at present.”
Colin Brodie of The Rennie Partnership in Falkirk added that there is a ‘lack of local authority investment’.
Commenting on the UK picture, Simon Rubinsohn, RICS chief economist said, “The latest results continue to demonstrate the ongoing challenges facing much of the construction industry. Rising material costs are exacerbating existing financial hurdles and being reflected in further pressure on profit margins.
“Infrastructure continues to show a degree of resilience with workloads benefiting from a number of substantive projects. However, there is little evidence of any improvement in sentiment in the housebuilding sector highlighting the predicament the new prime minister faces in trying to reignite building activity and oversee a sharp uplift in the delivery of social housing. Aside from the headwinds provided by viability, respondents are continuing to point to regulatory barriers impeding the development timeline with problems around the building safety regulator still being frequently cited despite some improvements in the process.”
