The UK faces a significant shortage of construction workers, jeopardizing the government’s pledge to build 1.5 million new homes by 2029, industry experts warn.
Tens of thousands of skilled workers are urgently needed in areas such as bricklaying, carpentry, and groundworks, according to the Home Builders Federation (HBF) and housebuilding giant Barratt Redrow. They attribute the shrinking workforce to an ageing labor pool, Brexit, and a lack of training initiatives.
The government acknowledged the “dire shortage” of construction workers and stated efforts were underway to address the issue. Last week, Prime Minister Sir Keir Starmer reaffirmed Labour’s commitment to building 1.5 million homes in England, unveiling major planning reforms and pledging to bypass bureaucratic hurdles that delay development.
Labour’s strategy aims to tackle housing affordability, particularly for younger generations, by lowering house prices and reducing rental costs. To meet its target, an average of 300,000 homes must be built annually—significantly higher than the 220,000 constructed in recent years.
Workforce Challenges
The Construction Industry Training Board (CITB) estimates the sector employs 2.67 million workers. However, meeting the government’s housing target will require approximately 30,000 new recruits across 12 trades for every 10,000 homes built, according to the HBF.
The estimated workforce demand includes:
20,000 bricklayers
8,000 carpenters
20,000 groundworkers
2,400 plumbers
3,200 plasterers
2,400 electricians
David Thomas, CEO of Barratt Redrow, bluntly admitted, “The short answer is no,” when asked if the current workforce could meet the demand. He emphasized the need for a “revolution” in market practices, planning processes, and production methods to achieve the ambitious goal.
Systemic Issues
The HBF noted the lack of a robust talent pipeline, citing factors such as poor career perception, limited training opportunities in schools, and insufficient apprenticeship programs. The sector has also struggled to attract young workers, partly due to a cultural shift in recent decades that prioritized academic education over trade professions.
Mr. Thomas highlighted the impact of these trends, noting that one-quarter of the construction workforce is over 50. He stressed that while pay in trades like bricklaying and carpentry is competitive—averaging £45,000 and £38,000 annually, respectively—the key issue is the availability of skilled labor.
Brexit’s Role
Brexit has exacerbated the problem by reducing access to a vital labor pool from EU countries. Before the end of freedom of movement, workers from nations like Poland and Romania played a significant role in the UK construction industry. Over-reliance on overseas workers, combined with restrictions following the 2008 financial crisis, has left the sector struggling to recover.
Currently, more than half of London’s construction workforce consists of EU/EEA nationals.
Government Initiatives
To address the shortfall, the government recently allocated £140 million to create 5,000 additional construction apprenticeship slots annually and launched “homebuilding skills hubs” to expedite training. A spokesperson said these initiatives reflect a commitment to promoting skilled careers in construction.
Despite these measures, local councils have criticized the housing target as “unrealistic,” and think tank Centre for Cities predicts a shortfall of 388,000 homes by 2029.
Industry Response
While acknowledging the challenges, both Barratt Redrow and the HBF have welcomed the government’s focus on housing. The HBF expressed optimism that pro-development policies could encourage investment in workforce expansion and land acquisition to boost housing supply.
Meanwhile, Barratt Redrow plans to construct between 16,600 and 17,200 homes in the next financial year, marking a significant increase following its recent merger.
January 18, 2025 2:48 am
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