UK Faces Severe Shortage of Builders Amid Ambitious Housing Goals

The United Kingdom is grappling with a significant shortfall of construction workers, hindering the government’s ambitious pledge to construct 1.5 million homes by 2029, according to industry leaders. Key players in the housing sector, including the Home Builders Federation (HBF) and Barratt Redrow, have indicated that tens of thousands more recruits are essential for trades such as bricklaying, carpentry, and groundworks to meet this target.

The situation has been exacerbated by factors including an aging workforce, with a notable proportion of workers exceeding 50 years old, and the impacts of Brexit, which diminished the inflow of skilled workers from EU countries. The construction industry currently boasts a workforce of approximately 2.67 million but will require around 30,000 additional recruits for every 10,000 homes planned to be built, based on HBF estimates. This translates into substantial demand for specific trades, necessitating:

• 20,000 bricklayers

• - 8,000 carpenters

• - 3,200 plasterers

• - 2,400 plumbers

• - 20,000 groundworkers and various others, totaling 30,000 per 10,000 homes.

Despite acknowledging a prevailing “dire shortage” of construction talent, the government indicated it is actively working to remedy this shortfall. As part of a broader strategy, Prime Minister Sir Keir Starmer reiterated his commitment to delivering 1.5 million new homes and proposed extensive reforms to the planning framework to accelerate construction. Labour posits that increasing housing availability will subsequently lower property prices and enhance affordability for younger demographics.

Currently, the construction industry can only manage existing build levels, but industry leaders warn that without a significant influx of new talent, achieving the proposed housing goals will remain unattainable. David Thomas, CEO of Barratt Redrow, emphasized the need for a radical transformation in market functioning, planning approaches, and production methods, describing the situation as a national crisis.

Recruitment issues stem from a lack of training opportunities in schools, insufficient apprenticeship programs, and the financial burdens associated with hiring apprentices. Additionally, there has been a cultural shift over recent decades where there has been a concerted effort to guide youth towards higher education instead of vocational trades, further straining the talent pipeline. Even though trades such as bricklaying and electrical work offer competitive salaries—around £45,000 for bricklayers and £44,000 for electricians—the workforce is still insufficiently populated.

The industry’s skills deficit has been a persistent issue but worsened following the Brexit transition, which curtailed the recruitment of previously abundant skilled labor from the EU—historically a critical resource. A substantial portion of construction workers in London, for instance, are EU nationals. The aftermath of the 2008 financial crisis also saw a significant number of skilled workers exiting the industry, complicating recovery efforts.

To address these challenges, the government recently announced a £140 million funding plan aimed at creating 5,000 new apprenticeship opportunities annually and establishing “homebuilding skills hubs” to expedite training for aspiring workers. However, local councils have expressed skepticism regarding the feasibility of the government’s housing targets, deeming them unrealistic amid the workforce shortage.

Despite these hurdles, both the HBF and Barratt Redrow welcome governmental initiatives aimed at fostering a more supportive development policy that would facilitate increased investment in housing supply and talent recruitment. Looking ahead, Barratt Redrow aims to construct between 16,600 to 17,200 homes in the coming financial year, reflecting an optimistic outlook amidst the prevailing challenges.