Architects Industry in UK Project Report

                           

Architects (Industrial Report) - UK

 1. EXECUTIVE SUMMARY

1	In 2008, the value of architects’ fees in the UK is believed to have declined by 5% to £4394.9 million. The decline largely reflects the worsening economic conditions, which started to significantly affect a number of construction sectors during the year, most notably private housebuilding activity. Prior to that, the value of fees increased in each year between 2004 and 2007, with annual growth levels fluctuating between a nominal 6% and a strong 18%. Growth has been 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.
2	Architects’ fees in the private housing sector are believed to have declined by 14% to £1212.6 million in 2008. This decline is due to reduced housebuilding activity, as housebuilders significantly scaled back new build projects in light of the worsening economic conditions and the downturn in the housing market. The decline in 2008 is in contrast to growth of 23% recorded between 2004 and 2007, taking architects’ fees in the private housing sector to a peak of £1411.1 million in the latter year. An important factor in the development of the sector during the current decade has been the increase in demand for architectural and design specification, thus enabling differentiation between individual properties or developments. The Treasury’s Barker Review of Housing Supply revealed the need for an additional 140 000 houses per year, of which between 70 000 and 120 000 should be provided by the private sector. This is believed to have increased the buoyancy of the private housing sector in recent years. A large proportion of the work in the private housing sector is carried out by in-house architects working for national building groups and local practices, rather than large city-based multi-disciplinary groups.
3	The public housing sector is the focus of increased government attention. The publication of the Treasury’s Barker Review of Housing Supply identified the need for an additional 23 000 social housing units per year, which is believed to have stimulated demand in the public housing market during recent years. The Government’s Green Housing Paper, published in July 2007 also placed an increased emphasis on social housing supply and committed itself to increasing social housing supply to 45 000 units a year by 2010/11. However, this target is unlikely to be met, with the number of social housing completions expected to continuing to trail behind the Government’s target over the next five years. Architects’ fees in the public housing sector increased by a highly significant 64% between 2004 and 2007. However this is believed to have been partially offset by a 2% decline in 2008, taking the value of fees to £446.4 million.
4	The private building sector which includes private industrial and commercial work accounted for the largest share of total architect fees in the UK in the five years to 2008, representing between 45% and 49% of the total. In the latter year, fees are estimated at £2157.6 million, equivalent to a decline of 4% in the year. However compared with 2004, this still represents nominal growth of 33%. The commercial construction sector was not as strongly impacted by the economic downturn and the financial crisis as the housebuilding sector during 2008, with a moderate increase in construction output estimated for the year. A downturn in the sector is believed to have been avoided as many projects that were already planned and approved prior to the downturn still went ahead, despite the worsening economic conditions. However MBD anticipate a strong decline in activity in the sector is anticipated for 2009, as the economic climate will lead to reduced investment in the sector.
5	In 2008, architects’ fees in the public non-residential sector increased by an estimated 11% to £524.1 million. This represents overall growth of 12% compared with 2004. The proportional importance of the sector to total architects’ fees is also believed to have increased from 46% in 2004 to an estimated 49% in 2008. Growth in the sector has largely been driven by increased government investment in the education, health and leisure sectors. However stronger growth in the sector is believed to have been hindered by significant delays in some government programmes, most notably the BSF programme.
6	Architects’ fees derived from public and private infrastructure totalled an estimated £54.7 million in 2008 compared with £46.9 million in 2004. This represents overall growth of 17%. In 2008, the sector accounted for a moderate 1% of total architects’ fees.
7	Architects’ fees in the UK are forecast to decline in real terms by 9% and 2009 and by 3% in 2010, as the uncertain economic climate is expected to continue to exert a downward pressure on construction activity over the next two years. Architects’ fees are expected to increase between 2011 and 2013, with annual growth levels projected to fluctuate between 2% and 5%. However, as a return to growth in the market is linked to an economic recovery, there is a degree of uncertainty concerning the timing and level of future growth. In 2013, architects’ fees are anticipated to reach £4292.3 million (at 2008 prices), although this still represents a moderate decline of 2% compared with 2008. The sectors with the strongest growth potential for architects over the next five years are expected to be the public housing, health and education sectors.
8	Architects’ fees derived from private housing are expected to decline by 15% and 6% in 2009 and 2010 respectively. Housebuilders are likely to continue to be negatively affected by the uncertain economic climate and the downturn in the housing market, resulting in a further decline in housebuilding activity. In 2011, architects’ fees are expected to increase by 4%, which is anticipated to be followed by further growth of 2% and 7% in 2012 and 2013 respectively. A large proportion of the work in the private housing sector is carried out by in-house architects working for national building groups and local practices, rather than large city-based multi-disciplinary groups.
9	Unlike the private sector, architects’ fees in the public housing sector are expected to increase in each year between 2008 and 2013, as the government remains committed to invest in social and affordable housing. Indeed, in the latest pre-Budget Report, published in November 2008, the Chancellor promised an extra £775 million for the public housing construction sector over the next 16 months by bringing forward spending on housing and infrastructure projects that were only due to get funds from April 2010, in a bid to kickstart the economy. Overall, architects’ fees in the public housing sector are forecast to increase by 38% in real terms between 2008 and 2013. The proportional importance of the sector to total architects’ fees is also anticipated to increase from 10% in 2008 to 14% in 2013.
10	The private building sector which includes commercial and industrial buildings is anticipated to continue to account for the largest share of total architects’ fees over the next five years, although the proportional importance is expected to decline from 49% in 2008 to 45% in 2013. Architects’ fees in the private building sector are forecast to decline in 2009 and 2010, followed by growth in the subsequent three years. Overall, the value of fees is expected to decline by 10% between 2008 and 2013.
11	Architects’ fees in the public non-residential sector are expected to increase in each year up to 2013. In the latter year, architects’ fees are anticipated to reach £582.2 million (at 2008 prices), equivalent to overall growth of 11% in real terms compared with 2008. Demand in the sector is expected to be driven by increased government investment in the health and education sectors. If you want Dissertations and Project Reports on Architects in  UK, than Contact Mahasagar Publications.