Workloads in the construction sector are continuing to decline during the first three months of the year, according to a study carried out by the Royal Institute of Chartered Surveyors (RICS).

However, the housing sector did show signs of improvement.

RICS spokesperson Jeremy Leaf said: "There are tentative signs that the market is starting to pick up but transactions remain at very low levels and we are unlikely to see significant improvement while money remains in short supply and the employment picture is uncertain.


"Transaction levels could benefit from an increase in supply but falling prices and low interest rates are discouraging sellers as is the latest change in HIPS legislation."

New enquiries in the market increased for the sixth consecutive month. 41% more Chartered Surveyors reported a rise than a fall in new buyer enquiries up from 32% in March and the highest figure for almost a decade.

Mr Leaf continued: "House prices could stabilise in the coming months but prospective purchasers - and first-time buyers particularly - will continue to encounter challenges while banks maintain current loan to value ratios and make accessibility difficult even for those who have accumulated considerable equity in their existing properties."

(CD/BMcc)