RIBA Future Trends Survey: Planning Delays Still Hindering UK Architecture Despite Positive Overall Outlook

The Royal Institute of British Architects (RIBA) has published the findings of its latest Future Trends Survey, a monthly report of business and employment trends affecting the architects’ profession.

The August 2024 findings show that over the next three months, architects continue to expect higher workloads and staffing levels, and their outlook has improved since July. However, delays in processing planning applications continue to hinder projects.

Architects continue to expect increasing workloads

In August, the RIBA Future Trends Workload Index rose by 1 point to +2, indicating that architects expect workloads to increase overall.

Over the next three months, 23% of practices expect workloads to increase, 21% expect them to decrease, and 55% expect them to stay the same.

The outlook for small practices (1-10 staff) improved by 4 points to a Workload Index figure of -2. In contrast, the outlook for medium (11-50 staff) and large (51+ staff) practices fell by 11 points but remained very optimistic at +33. 

The regional picture remains mixed. The outlook for the South of England (+8) recovered by 10 points, and the North of England (+12) rose by 2 points. While still positive, the Midlands and East Anglia (+6) fell by 8 points. Confidence among practices in London (-4) recovered somewhat, rising by 6 points, but in Wales and the West (-9) deteriorated by 9 points. 

The outlook among monitored work sectors also remains mixed. The outlook for the Commercial sector (+1) fell by 1 point but remained positive for the fourth consecutive month, the longest sustained stretch of optimism since June 2022. Meanwhile, the outlook for the Private Housing sector (0) rose by 1 point, leaving negative territory after over a year of pessimism. The Community sector (-5) held steady, and the Public sector (-4) fell by 1 point.

Practices recruiting more permanent staff indicates confidence in long-term prospects 

In August, the RIBA Future Trends Permanent Staffing Index rose by 3 points to +5. The positive figure indicates that more practices intend to increase staff numbers than reduce them, and the improvement from last month suggests growing confidence in long-term prospects.

• Over the next three months, 13% of practices expect to employ more permanent staff, 7% expect to employ fewer, and 80% anticipate no change. 
• Both medium and large practices (Permanent Staffing Index +30) and small practices (+2) are optimistic about permanent staffing levels. 
• All regions expect numbers of permanent staff to increase or hold steady. London (+2), the North of England (+6), Wales and the West (+11), and the Midlands and East Anglia (+13) all expect an increase, while only the South of England (0) expects no change. 
• In contrast, the Temporary Staffing Index fell by 5 points to -8, suggesting decreasing numbers of temporary staff. Taken together with the improving Permanent Staffing Index, this four-year low suggests practices are increasingly seeking to recruit and retain staff permanently rather than temporarily. 
• Levels of personal underemployment held steady at 26% in August.

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Planning application delays continue to hinder architects 

In light of the Government’s intention to reform the planning system, this month’s RIBA Future Trends survey asked practices whether delays in processing planning applications by local authorities had caused projects to be delayed or abandoned. The survey asked the same question in 2021 and 2023.

The results show that planning delays continue to cause projects to be delayed or abandoned, despite lessening slightly since 2023. In summary:

• 19% of practices who responded report projects being abandoned in the last three months, compared with 22% in 2023 and 7% in 2021. 
• 35% report projects being delayed by up to a month, compared with 38% in 2023 and 39% in 2021.
• 57% report projects being delayed by between one and six months, compared with 59% in 2023 and 60% in 2021.
• 42% report some projects being delayed by six months or more, compared with 47% in 2023 and 30% in 2021.
• 18% report no projects being delayed, compared with 15% in 2023 and 22% in 2021.

The following graph plots the effects of delays in the processing of planning applications:

RIBA Head of Economic Research and Analysis Adrian Malleson said, “While architects have a positive outlook on workloads overall, we are yet to see a resurgence in confidence across the board. Smaller practices have not yet consistently demonstrated an optimistic view of near-term workload growth.

“Despite this, the strong and improving outlook on permanent staffing levels indicates that many practices are preparing for long-term growth by recruiting staff. The gradual recovery in the private housing sector is also encouraging.

“Summer can be a quiet period, but workloads may increase as the year progresses. Practices report persistent issues including elevated interest rates, competition for architectural services from outside the profession, cash-flow challenges, and planning delays. 

“Overall, the speed with which planning applications are processed continues to hold back architects, the economy, and the creation of the buildings our county needs. 

“We will continue to report our findings to the Government and work with other built environment bodies to monitor these trends.”

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