BUILDERS in the region continue to be among the biggest victims of the downturn with new figures showing that workloads fell in the last quarter of 2010.

The latest RICS Construction Market Survey shows that more surveyors in the region reported falling workloads rather than a rise in the three week period, with the Government spending cuts resulting in the public housing and non-public housing sectors being hardest hit.

Surveyors also said that they had yet to see work from the private sector begin to fill the void left behind by the cuts.

While work in the private commercial sector managed to remain steady, RICS believes this is a sign of the market bottoming out rather than signs of a recovery.

Michael Henning, RICS North East spokesman on construction matters and associate director at Newcastle-based building consultants Summers Inman, said: "It's difficult to be positive in the current climate. There is an acute shortage of new construction work in the region and this is having a serious impact across the sector.

“"The reduction in public sector-funded projects is a significant factor but so is the influence of the private finance market, not only in terms of the funding to support new developments, but also in the support for construction businesses who find themselves between a rock and hard place.

“The costs of running a business are rising while a cutthroat market is driving down fees and profit margins. It's going to be a much tougher year than many anticipated."

Surveyors in the region revealed the market became increasingly competitive in the last quarter, with firms seeking to secure work from a diminishing pool of contracts.

As a result, more surveyors predict that jobs will continue to be lost during the remainder of 2011 .

Nationally, material costs rose dramatically, while tradespeople and professional costs fell, reflecting increased competition for jobs, which is driving down the cost of labour.

RICS chief economist Simon Rubinsohn said: “The rebound in the construction sector seems to have run out of steam.”