RIBA’s Future Trends Surveys give an insight into trends as well as the level of confidence in the industry. The latest one from July 2023 does not make very good reading. We want to have a look at it here and what the economic outlook could mean for architects. Then if you need help from an architect in London, you can speak to us.
Dip in confidence
The headline finding from the survey is that more practices think there will be a decline in work in the future. Confidence has fallen by 10%. Now 26% of practices believe workloads will shrink. Just 16% expect an increase. The remaining 58% anticipate that work will be stable. The doom and gloom is most prevalent with smaller practices.
The situation
It is a good idea to look at the wider economic outlook to explore why confidence has taken such a nosedive. There are several factors at play here.
Firstly, the construction sector is having a very tough time. The forecast is that it will shrink over the course of 2023, losing as much as 7%. That means fewer projects will begin. Recovery could begin in 2024, but it will be slow and may not return to last year’s level before 2025.
At the same time, inflation is causing a lot of trouble and there are supply chain issues for labour and materials. Plus, the interest rate is already high at 5.25%. It may increase again as the Bank of England try to keep inflation at 2% (it is currently 7.9%).
All of these have an impact on the architecture industry, affecting every architect in London and elsewhere in the UK. It makes borrowing more expensive and increases the cost of building. As a result, fewer projects can begin.
Silver lining
There are some positives to look out for in the future though. Supply chain issues could ease, lowering construction costs and build times. At the same time, the financial side could improve and bring the cost of borrowing down.
In a broader sense the UK desperately needs architects. There are a number of serious issues to resolve. For starters, we need more new homes and to improve the current stock of housing. There are also serious issues with schools and hospitals, with many needing replacements. Plus, there is a big need to improve key infrastructure such as public transport. All of this will require architectural expertise.
So, while there may be some tough years ahead, there will be more and more work to do in the future. An improvement in the economic conditions could bring big changes to the industry. Practices that can adapt to changing demands will also have a brighter outlook. For example, they need to be ready to help with designing more sustainable buildings with better thermal performance.
Talk to an architect in London
If you are thinking of a project, we would love to help you. Coffey Architects is a fantastic practice. Our team has passionate experts with different expertise and a huge scope of knowledge. We also have great resources to model buildings and create the perfect designs.
So, if you need an architect in London for any reason, you should speak to us. You can also get an idea of our skills by viewing some past projects on our website.