Housebuilding activity falls flat in north as wastewater issues persist

Planning delays, a lack of wastewater infrastructure and increased material costs all impacted the north’s construction sector last year and hit firms’ profitability.

And the same issues are expected to persist throughout 2025, according to an industry barometer.

The latest Royal Institution of Chartered Surveyors (Rics) construction monitor shows that overall construction workloads in Northern Ireland were marginally lower in the final quarter of 2024, though surveyors appear more optimistic at future prospects.

Respondents to the survey reported a fall in construction workloads in October, November and December, with public housing, private housing and private industrials all flat, and slight declines in private commercial, infrastructure and other public works.

Respondents cited a lack of wastewater infrastructure capacity as a factor in the lack of house building growth, with has been further highlighted by the creation of a new lobby body Build Homes NI, who plan to meet NI Water and the new infrastructure minister Liz Kimmins in a bid to change the culture, structure, funding and performance of the housebuilding landscape in the north.

Looking ahead, surveyors’ expectations for overall construction workloads in the north are more positive than seen previously, with 10% expecting a rise, up from 2% in quarter three (but still below the UK average of 20%).

Northern Ireland respondents also indicate that profit margins will continue to be squeezed over the next year, and they also cited labour shortages among quantity surveyors (58%), construction professionals (39%) and bricklayers (47%).

Conversely, surveyors appear more optimistic looking forward, as a net balance of 8% of respondents anticipate a rise in employment over the next year.

Rics’ regional construction spokesman Jim Sammon said: “The Northern Ireland construction market continued to face challenges through 2024, including in the final quarter. However, output increased by a healthy 14% over the year as a whole, which was a 15-year high, reflecting the activity across various sectors, including housing and infrastructure.

“But it wasn’t without difficulties. Planning delays, a lack of wastewater infrastructure and increased cost of materials all impacted the sector through the course of the year, and these issues are expected to continue through 2025.

“In saying this, it is hoped that Northern Ireland’s construction industry will be on a path of positive momentum in the year ahead.”