UK 'doesn't have enough builders' for Labour's 1.5m homes

In the United Kingdom, there is a significant issue regarding the construction workforce. Industry leaders have raised alarms that the country does not possess enough builders to fulfill the government's ambitious promise of constructing 1. 5 million homes. According to reports, tens of thousands of new workers are urgently needed in various trades such as bricklaying, carpentry, and groundworks to even come close to achieving this target. The Home Builders Federation (HBF), along with Barratt Redrow, the largest housebuilder in the UK, has pointed out that several factors contribute to this shortage, including a lack of skilled workers, an aging workforce, and the impacts of Brexit. The government has acknowledged the existence of a 'dire shortage' of construction workers and has stated that it is actively working to address this pressing issue. Recently, Prime Minister Sir Keir Starmer reiterated his commitment to delivering 1. 5 million new homes in England by the year 2029. He believes that increasing the number of homes will help lower house prices and make it easier for younger individuals to buy or rent properties. To meet this ambitious target, the UK needs to construct an average of 300,000 new homes each year, but the current rate has been around 220,000 homes annually. The Construction Industry Training Board (CITB) estimates that the current workforce in the construction sector stands at approximately 2. 67 million. However, to build 10,000 new homes, the industry requires around 30,000 new recruits across 12 different trades. For instance, the HBF has outlined the estimated number of new workers needed for various trades, including 20,000 bricklayers, 2,400 plumbers, 8,000 carpenters, and more. The HBF has stated that while the industry has the capacity to maintain current building levels, tens of thousands of new recruits will be necessary to meet the government's targets. When asked if there are enough workers available to construct the additional homes, David Thomas, the chief executive of Barratt Redrow, responded, 'The short answer is no. ' He emphasized that the government would need to 'revolutionize the market, revolutionize planning, revolutionize methods of production' to achieve these targets. He acknowledged that these are challenging goals and stated, 'I think we have to recognize that this is a national crisis. ' The HBF also pointed out that the UK lacks a sufficient talent pipeline of builders to draw from. They cited several recruitment challenges, including a negative perception of construction jobs, insufficient training opportunities in schools, a lack of apprenticeships, and the high costs associated with hiring apprentices. The industry body admitted that it has not attracted enough new recruits in recent years, leading to an aging workforce, with a quarter of workers being over the age of 50. A bar chart illustrates the number of net additional dwellings built in England from 1992 to 2024. Historically, the number of new homes constructed each year ranged between 148,000 and 165,000 from 1992 to 1999, dropping to 132,000 in 2001. The figures increased steadily to over 200,000 annually until 2008, when they fell below 150,000 until 2015. The peak year for new home construction was the year ending March 2020, with 248,950 homes built. However, this number dropped below 200,000 during the pandemic in 2020-21, before rising again to just over 234,000 the following year, and then falling to 221,000 in the year ending March 2024. The annual target for new homes from 2024 is set at 370,000. David Thomas noted that the push in previous decades to encourage young people to pursue higher education instead of vocational trades has not aided recruitment efforts. He remarked that in the 1960s and 1970s, parents, teachers, and the government were supportive of young people entering trades such as plumbing and electrical work. The average pay for these jobs is relatively high, with experienced bricklayers earning around £45,000 per year, carpenters making about £38,000, and electricians earning £44,000, according to government statistics. Skills shortages have been a persistent issue in the UK, but the gap was partially filled in recent decades by workers from the European Union. However, following Brexit, this recruitment pool has diminished significantly. The HBF reported that 40 to 50 percent of skilled workers left the industry after the financial crisis in 2008, and new restrictions have made it more challenging to recruit from abroad. David Thomas acknowledged that the construction sector had historically relied heavily on workers from Eastern European countries, admitting that the UK had become overly dependent on overseas labor, which had become the norm. According to the latest census data, Romania, India, and Poland are the most common countries of origin for construction workers in the UK. In London, more than half of the construction workforce consists of EU and EEA nationals. Last month, the government announced a £140 million investment to create 5,000 additional construction apprenticeship places each year and established 'homebuilding skills hubs' to expedite training. A government spokesperson stated that these skills hubs demonstrate a commitment to taking skilled careers in construction seriously. However, local councils, which are responsible for implementing the new housing targets, have expressed concerns about the feasibility of these plans. The independent think tank Centre for Cities has estimated that housebuilders will fall short of the government's target by 388,000 homes. Nevertheless, both Barratt Redrow and the HBF have welcomed the government's initiatives. The HBF stated that a more pro-development policy approach would enable the industry to invest in the necessary people and land to increase housing supply. Despite the recruitment challenges, Barratt Redrow is planning to build between 16,600 and 17,200 homes in the next financial year, which is nearly 4,000 more than their previous forecast made in October.