GROWTH in building public housing in Scotland reached a nine-year high in the third quarter, but caution remains, with calls to tackle issues which hinder further, broader growth.

That is according to the Royal Institution of Chartered Surveyors (RICS), whose UK Construction Market Survey, covering the quarter and published today, found that the net balance of surveyors reporting the growth in public housing reached 22 per cent in the period. That is the highest level since 2005.

Looking at surveyors, 39 per cent more reported a rise in commercial activity, up from a net balance of 26 per cent in the previous three-month period.

Additionally, workloads in infrastructure took an upward turn, with 27 per cent more surveyors reporting higher activity levels. In terms of overall construction, 43 per cent more surveyors predicted that profits will increase over the coming year.

RICS described the pattern seen in Scotland as signalling further growth in the next 12 months.

Sarah Speirs, director at RICS Scotland, praised house building growth given lack of supply, but said obstacles, such as skill and material shortages "must be addressed."

For the whole UK, the biggest concerns, each with a net balance of 58 per cent, were a shortage of labour and worries over finance and a lack of materials.

Ms Speirs also said it is crucial to ensure that relevant underlying framework is in place.

David Taylor, a fellow of RICS and director of CBA Chartered Quantity Surveyors, added that "market participants still seem reluctant to commit to some of the larger projects."