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RELEASED: JUNE 2010
After researching the UK architects market development and taking into account various other factors the following conclusions can be drawn from MBD's report:
MARKET REVIEW 2005-2009:
Architects’ fees in the UK contracted by 9% in 2008, which is believed to have been followed by a stronger decline of 24% in 2009, taking total fees to £3231.1 million, reflecting the significant downturn in the construction sector and the effects of the global financial crisis. The strongest decline in demand for architects’ services was recorded in the private housing and private commercial & industrial sectors. However, growth is believed to have been sustained in public construction sectors, as the Labour government brought forward spending and fast-tracked construction projects in a bid to kickstart the economy. Nonetheless, due to the current record budget deficit and with the new coalition government pledging to start cutting public spending the 2010/11, the prospects of public sector investment look weak for the coming years.
The downturn in fees in 2008 and 2009 reversed a period of sustained growth in the architects sector. Prior to that, the value of fees increased in each year between 2005 and 2007, with annual growth levels fluctuating between a nominal 6% and a strong 12%. Growth was driven by a buoyant construction market, with the need to increase housing supply resulting in strong output growth in the private and public housing sector. Furthermore strong levels of business investment stimulated private non-residential construction output while government programmes such as LIFT and BSF boosted public non-residential activity.
MARKET FORECAST 2010-2014:
MBD expect architects’ fees in the UK to continue to decline in 2010, albeit at a moderate 2% in real terms. This decline is a reflection of the continued uncertain economic conditions with only tentative signs of an improvement in construction activity. The market is forecast to return to growth in 2011, at 2% in real terms. This is anticipated to be followed by slightly stronger annual growth levels of between 3% and 5% in the subsequent three years. Overall, architects’ fees in the UK are projected to increase by 13% in real terms between 2009 and 2014. The sectors offering the strongest growth potential for architects are expected to be the private housing and private commercial sectors, which are anticipated to return to growth, once the economic climate is more favourable. On the contrary, demand in the public sectors is expected to be more subdued, reflecting impending public spending cuts.
NOTE TO EDITORS:
MBD specialises in business to business market research. The range of reports and industries in which we operate in constantly expanding (our portfolio comprises of more that 140 titles). All our reports are written by in-house market consultants.
Click here for full details of the UK Architects Market Research Report
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