THE booming private sector property market has led to a large rise in construction in the South East during the last three months, according to the Royal Institution of Chartered Surveyors (RICS).

While expectations for continued growth in workloads and employment hit a recent high, doubts emerged over long-term stability due to high energy prices and a future change of prime minister.

Trevor Hines, RICS South East director, said: "The immediate outlook for the construction industry is bright, as a healthy economic outlook continues to boost workloads.

"Interest rates are set to rise further and will cool the property market in 2007, as such we foresee a market slowdown in the construction industry.

"High energy and raw material prices have taken their toll. Feelings of instability over the leadership of the Government have been expressed as chartered surveyors become nervous about Tony Blair’s exit strategy and it’s effect on the economy."