Labour's Housing Ambitions Challenged by Skilled Worker Shortages
Minister's Remarks Cast Doubt on Goal of 1.5 Million New Homes Amidst Construction Labour Shortages
Labour's ambitious target to construct 1.5 million new homes during the current parliamentary session is facing significant challenges due to an acknowledged shortage of skilled workers in the construction industry.
A senior minister, speaking on Times Radio, expressed concerns about the adequacy of the existing workforce, stating, “I’m not confident that we’ve got enough skilled workers, no that’s what we’ve inherited.”
This statement reflects the broader implications of a fragmented skills system, with indications that a third of vacancies in the economy are attributable to skills shortages.
The minister noted that addressing this issue is a priority, suggesting a need for increased training and upskilling in the sector.
According to data from the National House Building Council (NHBC), the number of new home completions fell to 124,144 in 2024, marking a 7% decrease compared to 2023, which saw 133,611 completions.
NHBC, which holds over 70% of the UK warranty market, also reported that registrations for new homes were largely stable, with 104,232 homes registered in 2024 compared to 105,071 in 2023. Within this total, there was an 11% increase in private sector registrations, amounting to 68,987 homes.
However, the affordable and rental housing sectors encountered challenges, with registrations down by 18% in 2024 to 35,245 due to financial constraints associated with remediating existing housing stock.
A breakdown of the type of properties shows growth in registrations for detached and semi-detached homes, while there was a decline in the registrations for apartments, bungalows, and terraced homes.
Faced with the pressing need to improve housing delivery, the UK government announced plans to reclassify certain lower-quality green belt lands as “grey belt” to facilitate construction.
Additionally, measures aimed at streamlining the home buying process are in progress, which includes efforts to improve data sharing among conveyancers and lenders.
Steve Wood, the CEO of NHBC, pointed out that despite the overall decline in new home completions, there are encouraging signs in the private sector.
Wood commented on the recent announcements regarding infrastructure and planning reforms from Chancellor Rachel Reeves, stating, “While house building activity has remained broadly level with 2023, it is positive to see increased activity in the private sector.”
In the context of the housing pipeline, the NHBC's reports show that 45,824 of the new homes completed in 2024 were designated for the rental and affordable sector, which is a slight decline of 2% from the previous year but still represents the second-highest figure recorded.
Meanwhile, private sector completions experienced a 10% decrease, totaling 78,320.
Experts stress that a diversified approach to housing tenure is crucial for meeting the nation's housing targets.
Mr. Wood emphasized the importance of scaling up not just private sales, but also affordable, social, and private build-to-rent sectors to accelerate overall housing delivery.
A senior minister, speaking on Times Radio, expressed concerns about the adequacy of the existing workforce, stating, “I’m not confident that we’ve got enough skilled workers, no that’s what we’ve inherited.”
This statement reflects the broader implications of a fragmented skills system, with indications that a third of vacancies in the economy are attributable to skills shortages.
The minister noted that addressing this issue is a priority, suggesting a need for increased training and upskilling in the sector.
According to data from the National House Building Council (NHBC), the number of new home completions fell to 124,144 in 2024, marking a 7% decrease compared to 2023, which saw 133,611 completions.
NHBC, which holds over 70% of the UK warranty market, also reported that registrations for new homes were largely stable, with 104,232 homes registered in 2024 compared to 105,071 in 2023. Within this total, there was an 11% increase in private sector registrations, amounting to 68,987 homes.
However, the affordable and rental housing sectors encountered challenges, with registrations down by 18% in 2024 to 35,245 due to financial constraints associated with remediating existing housing stock.
A breakdown of the type of properties shows growth in registrations for detached and semi-detached homes, while there was a decline in the registrations for apartments, bungalows, and terraced homes.
Faced with the pressing need to improve housing delivery, the UK government announced plans to reclassify certain lower-quality green belt lands as “grey belt” to facilitate construction.
Additionally, measures aimed at streamlining the home buying process are in progress, which includes efforts to improve data sharing among conveyancers and lenders.
Steve Wood, the CEO of NHBC, pointed out that despite the overall decline in new home completions, there are encouraging signs in the private sector.
Wood commented on the recent announcements regarding infrastructure and planning reforms from Chancellor Rachel Reeves, stating, “While house building activity has remained broadly level with 2023, it is positive to see increased activity in the private sector.”
In the context of the housing pipeline, the NHBC's reports show that 45,824 of the new homes completed in 2024 were designated for the rental and affordable sector, which is a slight decline of 2% from the previous year but still represents the second-highest figure recorded.
Meanwhile, private sector completions experienced a 10% decrease, totaling 78,320.
Experts stress that a diversified approach to housing tenure is crucial for meeting the nation's housing targets.
Mr. Wood emphasized the importance of scaling up not just private sales, but also affordable, social, and private build-to-rent sectors to accelerate overall housing delivery.
