Sentiment in the construction sector has turned increasingly negative because of government cuts, as well as fears over access to finance, according to the latest RICS Construction Market survey.

59% of chartered surveyors reported there had been no movement in construction workloads during Q3 2010. Of those who did see an adjustment, it was downwards, with 10% more surveyors reporting that workloads fell rather than increased. Insufficient funding for new developments and continued concerns over the economy were among the factors cited as affecting construction projects.

Surveyor sentiment was negative for all sectors of the construction industry. The worst affected areas were public housing and other public works, with negative net balances of -32 and -23 respectively. This is unsurprising as the public sector is likely to be worse hit by government spending cuts.

Sentiment over public housing workloads is now at its lowest level since the survey began in 1994.

Across the UK, all regions reported negative net balances in the third quarter. Northern Ireland recorded the largest deterioration in workloads, with the net balance at -63. Scotland also experienced sharp declines in workloads as did the South West and Wales

The overall outlook for the coming year also worsened, with surveyors reporting output expectations falling at a faster rate than projected at the time of the previous survey. Indeed, the net balance for output expectations now stands at its worst level since the first quarter of 2009. Meanwhile, a substantial majority of surveyors continue to expect profits to fall further over the next twelve months.

RICS chief economist Simon Rubinsohn said: “Government data shows the construction sector has rebounded more strongly than many anticipated but our latest survey casts considerable doubt on whether this improvement can be sustained. The collapse in public funding will inevitably have a major impact on the sector.