Government’s Plan to Build 1.5 Million Homes by 2029 Faces Major Hurdles
The UK government’s ambitious plan to build 1.5 million new homes in England by 2029 is facing significant challenges due to a shortage of skilled construction workers, according to industry leaders. Prime Minister Sir Keir Starmer recently unveiled sweeping changes to the planning system and vowed to override “blockers” standing in the way of building the new homes. However, the Home Builders Federation (HBF) and the UK’s largest housebuilder Barratt Redrow have warned that the current workforce is insufficient to meet the target.
Tens of Thousands of New Recruits Needed
To reach the government’s target of building an average of 300,000 new homes a year, the construction sector needs tens of thousands of recruits across various trades. According to the HBF, for every 10,000 new homes to be built, the industry requires approximately 30,000 new workers in 12 trades. Some of the estimated numbers of new workers needed for common trades include:
- 20,000 bricklayers
- 2,400 plumbers
- 8,000 carpenters
- 3,200 plasterers
- 20,000 groundworkers
David Thomas, chief executive of Barratt Redrow, stated that the industry currently does not have enough workers to build the extra homes. He emphasised that the government would have to “revolutionise the market, revolutionise planning, revolutionise methods of production” to meet their target.
Factors Contributing to the Skills Shortage
Several factors have contributed to the shrinking construction workforce in the UK:
- Ageing workforce: A quarter of the current construction workers are over 50, leading to concerns about the industry’s future.
- Lack of training and apprenticeships: The HBF cited a poor perception of the construction sector within schools, insufficient apprenticeships, and the costs of taking on apprentices as recruitment constraints.
- Brexit: The end of freedom of movement has dried up the pool of skilled workers from the European Union, which had partially plugged the skills gap in recent decades.
According to the industry’s latest census, Romania, India, and Poland were the most common countries of origin for construction workers from overseas, with more than half of London’s construction workforce being EU/EEA nationals.
Government Initiatives to Address the Skills Shortage
The government has acknowledged the “dire shortage” of construction workers and has taken some steps to address the issue. Last month, it announced £140m of funding to create 5,000 more construction apprenticeship places per year and established “homebuilding skills hubs” to fast-track training.
A government spokesperson said the skills hubs showed that the government wanted to “make sure this country takes skilled careers like construction seriously.” However, local councils, which are charged with implementing the new housing targets in their areas, have said that the targets are “unrealistic” and “impossible to achieve.”
Industry Response and Outlook
Despite the recruitment challenges, Barratt Redrow plans to build between 16,600 and 17,200 homes in the next financial year, almost 4,000 more than Barratt itself forecasted before the merger with Redrow in October.
Both Barratt Redrow and the HBF have welcomed the government’s plans, with the HBF stating that “a more pro-development policy approach” would enable the industry to “invest in the people and land needed to increase housing supply.”
However, the independent think tank Centre for Cities has estimated that housebuilders will fall 388,000 short of the government’s 1.5 million target, underlining the scale of the challenge facing the industry and the government.
