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 May 2024 findings show a positive and improving outlook among architects, continuing recent trends. Over the next three months, architects expect workloads to increase and staffing levels to remain stable – and small practices expect their workloads to increase, for the first time in over a year.
In May, the RIBA Future Trends Workload Index rose by 4 points to +6, indicating that architects expect workloads to increase overall.
Specifically, over the next three months, 27% of practices expect workloads to increase, 22% expect them to decrease, and 51% expect them to stay the same.
The outlook for small practices (1-10 staff) became positive for the first time in over a year, with a Workload Index figure of +3, a 4-point rise. The already optimistic outlook for medium (11+ staff) and large (50+ staff) practices also rose by a further 11 points to +30.
Three out of four monitored work sectors have an improved workload outlook. The outlook for the Commercial sector (+4) rose by 4 points, returning to positive territory. While still negative, the outlook for the Community sector (-2) rallied by 10 points, and the Public sector (-5) improved by 4 points. Only the Private Housing sector’s outlook (-5) fell - by 2 points.
The regional picture also improved, and no region reported a negative outlook. London (+2) and Wales and the West (+2) returned to confidence, rising by 4 and 7 points respectively. The outlook for the North of England (+23) improved by 12 points, and the South of England (+8) remained positive but fell by 16 points from last month’s high. The Midlands & East Anglia (0) rallied by 15 points to leave negative territory, indicating an expectation of steady workloads to come.
In May, the RIBA Future Trends Permanent Staffing Index held steady at 0, indicating that the same number of practices intend to increase staff numbers as reduce them.
- Over the next three months, 10% of practices expect to employ more permanent staff, 9% expect to employ fewer, and 81% anticipate making no changes.
- Small practices expect falling staffing levels, returning a Permanent Staffing Index figure of -2, the same as last month.
- Medium and large practices are optimistic about staffing levels, returning a combined Permanent Staffing Index figure of +15, a 6-point increase from last month.
- The regional staffing outlook is broadly flat, except for the Midlands & East Anglia (Staffing Index: +6) and the South of England (+3), which both expect increasing permanent staff levels.
- The Temporary Staffing Index rose by 1 point to +2, suggesting increasing numbers of temporary staff over the next three months.
- Levels of personal underemployment fell slightly from 25% in April to 23% in May.
RIBA Head of Economic Research and Analysis Adrian Malleson said: “The outlook for the profession continues to improve. The long stretch of subdued outlook that lasted from mid-2023 to early 2024 looks increasingly far behind us.
“The positive outlook seen in the Commercial sector is welcome, though the continued weakness of the housing sector remains a concern.
“Although the overall outlook is on the up, caution is still needed. Commentary from practices this month indicates an improving market for some, but a mixed picture overall.
“Practices continue to describe various challenges to the profession, including planning delays, downward fee pressure, and an unwillingness from clients and developers to commit to projects. Cash flow is increasingly an issue as projects progress slowly or clients pay late. Nevertheless, some practices report increased enquiries, slowly returning confidence in the domestic sector, and, locally, improvement in the speed of planning application progress.
“We will continue to work with other built environment bodies to monitor these trends.”
