Labour’s ambitious pledge to deliver 1.5 million new homes is facing significant challenges, primarily due to a critical shortage of skilled workers in the construction sector. Industry leaders have expressed concerns that current efforts to address this gap may be insufficient. They describe plans to train new apprentices as merely a “drop in the ocean” compared to the urgent needs of the industry.
Despite Labour’s commitment to reducing net migration, construction experts caution that the Government may need to consider an influx of overseas builders to achieve its target of constructing 300,000 homes annually by the end of the current parliamentary term. According to data from the Home Builders Federation (HBF) and the Construction Industry Training Board (CITB), an additional:
- 25,000 bricklayers
- 3,000 plumbers
- 4,000 plasterers
- 10,000 carpenters
- 3,000 electricians
will be required to meet the growing demands of the housing market. The Government’s initiative to create Homebuilding Skills Hubs, which aim to train the next generation of construction workers by offering 5,000 apprenticeship slots, has been welcomed. However, insiders in the industry warn that even with accelerated training programs, the UK workforce will still fall short of what is necessary to fulfill Labour’s ambitious housing plans, which are attempting to close an estimated gap of between 250,000 and 300,000 skilled workers.
A Government spokesperson acknowledged that the shortage of construction workers in the UK has been exacerbated by “years of underinvestment in skills.” They assured the public, “We will pull every lever to deliver on our commitment, which includes building a diverse workforce fit for the future in the UK and ending our reliance on overseas labor.”
Steve Turner, an executive director at the HBF, stressed the challenges ahead: “We’re not going to go from building 200,000 homes a year to 300,000 homes a year overnight. Even if the Government’s proposed hubs are fully operational, they won’t produce enough skilled workers quickly enough.”
Colin Brown, head of planning and development at the consultancy firm Carter Jonas, described Labour’s housebuilding pledge as “unrealistic,” asserting that training a sufficient number of skilled workers could take “a generation.” He elaborated, “It’s somewhat fanciful to think that you can suddenly have all the resources you need to meet these targets.” While the target of creating 5,000 new apprenticeships each year is significant, he believes it will not be transformative.
This situation unfolds as four strategic locations—two commuter villages and urban extensions of the two largest cities in the North of England—have been recommended for the development of Labour’s new towns initiative. The plan aims to construct the UK’s first new towns in a generation, with each town comprising at least 10,000 homes, as part of the broader objective of delivering 1.5 million new homes by the end of the current parliament. The Government’s New Towns Taskforce is actively identifying sites for these new settlements, with a shortlist expected to be presented to ministers by July.
Aging Workforce: A Ticking Time Bomb
Patrick Hickey, a former head of development at housing association Arcon in Manchester, highlighted the pressing issue of an aging workforce within the construction industry. Over 20 percent of the current workforce is over the age of 50 and is expected to retire within the next decade. Additionally, a dropout rate as high as 40 percent among construction apprentices exacerbates the problem.
Data from Statista indicates that there are approximately 2.14 million people employed in the UK construction sector today, a slight increase from just over 2 million in the first quarter of 2000. While new apprentices would indeed provide significant assistance, the existing skills hubs are unlikely to produce enough skilled workers in the necessary timeframe. Experts agree that achieving the homebuilding target will be nearly impossible without bringing in a migrant workforce. “It’s not a short-term fix,” Hickey remarked. “There may need to be some relaxation of immigration rules or the introduction of short- to medium-term visas for specific large infrastructure projects.” He noted that the establishment of apprentice skills hubs should have been initiated 10, 15, or even 20 years ago to avoid the current crisis.
When asked earlier this month if the UK would need to depend on overseas labor, Prime Minister Sir Keir Starmer responded, “No, we must focus on training the construction workers we need. I refuse to accept that we cannot make a significant change in this area.”
The Government is collaborating with the CITB and the National House-Building Council (NHBC) to launch these new skills hubs. Out of the 32 hubs proposed, the NHBC is set to open 12 that will provide apprenticeships and training in critical skills such as bricklaying, groundwork, and site carpentry. Recently, planning permission was granted for the first hub in Lichfield, Staffordshire, with plans for a second hub to follow later this year, alongside other potential sites currently under consideration.
Apprentices Receiving Only Four Hours of Practical Training Per Week
Turner emphasized the need for more intensive training for apprentices aged 16-18, noting that some are receiving as little as four hours of practical training each week. He called for a reform of the CITB to better support training and upskilling in trades essential for achieving net-zero targets, such as heat pumps and solar panels. Ed Miliband, the energy secretary, has set an ambitious goal of installing 600,000 heat pumps annually by 2028.
Increasing the participation of women, ex-Armed Forces members, and former offenders in the construction workforce could also help fill the recruitment gaps, according to Turner, who believes a predominantly UK workforce could meet the industry’s needs effectively. David Barnes, acting head of policy and public affairs at the Chartered Institute of Building (CIOB), expressed optimism about the housebuilding target but raised “significant concerns” regarding its feasibility and the scale of the goal. He noted that the CIOB is also worried about quality control if the timeline is shortened, referencing the Grenfell disaster as a tragic example of large-scale construction failure. “We must ensure that individuals entering housing projects are adequately trained in the necessary skills,” he stated. “Cutting corners on training should never compromise essential skills qualifications.”
Lack of Workers: Just One of the Obstacles
Turner described the Government’s housebuilding target as “very challenging,” asserting that the lack of workers is just one of many obstacles faced. The trade body advocates for enhancing the capacity of local authority planning departments to expedite the processing of planning applications for new homes, alongside increasing mortgage support for buyers.
“Currently, the housing market is the largest constraint on delivery,” Turner explained. “Mortgage availability significantly limits the number of potential buyers. First-time buyers, in particular, are struggling to secure mortgages.” He also highlighted the challenges faced by housing associations, which are unable to purchase the affordable homes that builders are permitted to construct under planning agreements. “The market is artificially suppressing demand, leaving both housing associations and individual buyers unable to step onto the property ladder,” he noted. “Until we address these issues and enhance the capacity of local authority planning departments to efficiently process applications, we will continue to struggle with increasing output in the industry.”
It currently takes an average of eleven years for first-time buyers to enter the property market due to escalating mortgage rates and high deposit requirements. According to estate agency Hamptons, the average cost of a home for a first-time buyer in Britain is £245,430, indicating that it would take a couple over five years to save for a deposit, or eleven years for a single individual.
In light of these issues, a Government spokesperson stated, “Years of underinvestment in skills have resulted in a critical shortage of construction workers. Through our Plan for Change, we aim to stimulate growth by introducing an additional 5,000 construction apprentices each year through the 32 Homebuilding Skills Hubs we announced last year. Our recent measures to reduce bureaucratic obstacles will enable an extra 10,000 apprentices to qualify annually, and we are taking decisive steps to resolve the housing crisis by reforming the broken planning system and investing £5 billion in housing this year. We are committed to employing all available government resources to achieve our goals, which include building a diverse workforce for the future in the UK and ultimately ending our reliance on overseas labor.”
