by Kim Pidgeon | Mar 31, 2025 | News
New research looks into government house building targets and the skills and workforce needed to supply it
Only a quarter of construction students are entering the house-building workforce, according to a new report.
The publication from the Home Builders Federation (HBF) – ‘A Hard Hat to Fill’ – looks at the skills gap in the construction industry and the impact on meeting government housing targets.
The report looks at why the home building sector is – and has been – facing a significant skills shortage and the exacerbating factors:
- just 25% of those entering current construction related higher education courses are going onto a career in house building
- a shortfall in the number of recruits being attracted into the sector
- a severe loss of skills during the previous recession – 40% to 50% of skilled labour left the industry
- increases in demand – the industry has delivered an increase in supply over the past decade
- an ageing workforce – 25% of the homebuilding workforce is aged over 50 meaning the sector is facing an impending retirement cliff edge.
240,000 people will need to be recruited across a broad range of roles and skills to deliver on the Government’s housing targets, according to the report.
To meet those targets, home building needs to increase by 80,000 units a year, based on the most recent net additions figures. Research undertaken by the (HBF) has found that for every 10,000 new homes the industry builds, 30,000 new recruits are needed.
In addition, the transition to the Future Homes Standard will involve significant changes to the design and construction of new homes, which will require further training and skills.
The HBF says closing the skills gap requires a long-term plan for the future of apprenticeships, further education, and supporting the students and businesses which make up the workforce.
Work done in this area by the Government so far includes the replacement of the Apprenticeship Levy with the new Growth and Skills Levy, and the establishment of Skills England as a body to oversee the reforms and to identify and monitor gaps in the country’s workforce.
Apprenticeships
It’s estimated around half of the onsite workforce in the UK have undertaken an apprenticeship for the trade they were working in, making apprenticeships one of the most popular routes into a construction role.
However, in recent years, the ability for businesses to recruit and train apprentices has waned, the HBF says, due to reasons including:
- employer perception of the quality of apprenticeship courses is variable
- there are not enough apprenticeship positions available for everyone in further education courses to progress to one leaving students unable to advance into their chosen industry
- The Apprenticeship Levy has mostly been used for higher level qualifications but has seen a reduction in the number of apprentices at Levels 2 and 3, meaning it is not addressing the lack of newer entrants into the industry
- Apprentices pay during the first year of training is simply not an option for young people, particularly those who live in London or the South East.
Further Education
Around 100,000 students are enrolled in further education (FE) construction courses at any one time, but, according to the HBF, the courses are not producing work-ready potential recruits.
The report states that just 25% of FE learners gain employment in construction within six months of finishing their course with 60% leaving the industry completely shortly after finishing their training.
T Levels
T Levels were introduced in September 2020 as an alternative to A Levels (Level 3) for those seeking a technical qualification. Since 2021 there has been a T Level in onsite construction available, which focuses on practical skills in areas like bricklaying, carpentry and joinery, plastering, and painting and decorating.
In the 2022/23 and 2023/24 academic year, over 10,000 students undertook a T Level qualification. However, only 213 of these were in the onsite construction course – just 2% of the student base.
In conclusion the HBF report says the key changes the home building industry needs to see include:
- As the Growth and Skills Levy is being developed, the Government should consult with the home building industry to ensure that it will support developers to recruit the broad range of skills needed to increase housing delivery.
- Reform the apprenticeship training model which is out of step with employer needs
- Simplify the End-Point Assessment (EPA) process
- Ensure FE colleges are properly funded and resourced.
- Restructure and reform FE construction courses to put a greater emphasis on the development of practical skills.
by Simon Fitzsimmons | Dec 27, 2022 | News
Rampant inflation and “economic turmoil domestically and globally” is hindering construction projects reaching the build stage, with every region in England suffering declines in project-starts.
The latest Glenigan Index of construction, which details starts through to end of November 2022, reveals a steady decline in performance throughout the second half of 2022.
The report shows residential construction work starting on-site slipped back 1% on the preceding three-month period but remained unchanged on a year ago.
Private housing construction-starts improved slightly, increasing 1% against the preceding three months and 9% on the year before.
However, by contrast, social housing project-starts declined by a tenth against the preceding quarter and performed especially poorly (-29%) compared with 2021 levels.
Likewise, non-residential sectors also experienced a downward trend with hotel and leisure work starting on-site falling 30% to stand 40% down on 2021 levels. Health project-starts tumbled 37% against both the preceding three months and the previous year.
Civil engineering work starting on-site fell by a quarter to stand 12% down on a year ago, while education dropped 11% and industrial by 15% on the preceding quarter, (falling 15% and 10% respectively against the previous year).
Like private housing, office project-starts achieved growth compared to 2021 levels. Despite a 12% decline in the three months to November, a strong start to the year saw its value actually increase by 3% overall.
Summary of the index says the key takeaway from November’s Index is the continued, steady decline in performance throughout the second half of 2022, pointing to a particularly bleak winter sector-wide ahead.
With the UK in the grip of a cost of living crisis alongside external factors contributing to continued materials, energy, and fuel price inflation, Rhys Gadsby, senior economist at Glenigan, says the results reflect the multitude of current challenges:
“The poor performance in November tops a weak autumn for construction-starts in the UK. Given the economic turmoil domestically and globally, it was unsurprising that these latest figures should remain depressed.
“The cost of imported construction materials and supplies, skills shortages as well as a weakened pound and higher than expected interest rates continues to impact construction projects moving on-site.
“This tricky period will likely see us through to the end of the year, as the industry navigates these ongoing challenges. Going into 2023, we need to see more affirmative policy from the Government, particularly in critical areas such as housebuilding, to help stimulate the market.
“However, the industry can take hope from the promise of a strong development pipeline of contract awards and approvals built up over the last few months, which should help to stabilise project starts in the first few months of 2023.”
Summarising the data Glenigan says the “rapid succession of unusual, but highly disruptive external events over the past 12 months have taken their toll, and businesses across the sector are experiencing multiple waves of economic aftershocks.
“Unfortunately, with the Russia-Ukraine war and resulting materials, energy and fuel price inflation unlikely to abate any time soon, a return to pre-COVID activity levels looks set to be delayed for some time to come.”
It also adds the “fallout from September’s ‘mini-budget’ and consequent economic uncertainty is still affecting confidence across the board, stagnating projects moving to site.”
They do however point out that the market is showing small signs of stabilising, as evidenced by last month’s Glenigan Construction Review and an uptick in contract awards and planning approvals.
Regional analysis:
- Scotland was the only region to experience growth against both periods, with the value of project-starts rising 3% against the preceding three months and 4% compared with a year ago.
- Construction-starts in London advanced 3% against the preceding three-month period but remained 8% lower than a year ago.
- The West Midlands experienced 5% growth during the three months to November but remained 3% behind 2021 levels.
- London and the West Midlands were the only areas of the UK to experience growth against the preceding three months.
- Project-starts in Northern Ireland fell sharply (-39%) against the preceding three months, but stood 13% up on a year ago.
- The East Midlands performed particularly poorly, suffering a 23% drop against the preceding three months to stand 16% down on the same time last year.
by Kim Pidgeon | Sep 23, 2020 | News
Supply Chain Sustainability School has hit ‘go’ on its free Materials Exchange Platform Map (MEP Map).
The School is a collaboration working towards a ‘sustainable built environment’ and their mapping tool aims to help reduce the volume of waste entering landfill by providing construction contractors and their suppliers with a central database of local MEP projects.
The map is a quick way of finding a home for unused construction materials. It has been developed through a collaboration of the School’s industry partners, including BAM, Berkeley Group, Canary Wharf Contractors, Kier, John Sisk & Co, National Grid, Reconomy and Skanska.
How it works
The free mapping tool gives the user access to a national network of Materials Exchange Platforms and allows them to compare those in their local or regional areas. The user can search the database for materials by using filters based on location, MEP type and material information.
Matt Nichols, of Reconomy, and chair of the School’s Waste and Resource Efficiency group said: “Awareness of the importance of a circular economy – based on the principles of designing out waste and ensuring that we efficiently use all the products and materials that we buy – is definitely gathering pace.
“The MEP Map performs the crucial task of connecting those with excess materials and products to those who can make good use of them, therefore reducing the volume of waste we send to landfill.”
Alongside reducing waste by redirecting unused resources, the tool also aims to save contractors disposal costs and potentially generate additional income. Furthermore, it’s hoped the map will aid local businesses and smaller contractors by providing access to quality materials at a lower cost, or even free.
Mark Turner, of the Supply Chain Sustainability School, commented: “Whilst Materials Exchange Platforms are not new, they are sadly very much underused. We hope that by providing this interactive map to our 37,000 online members, and indeed the whole industry, we can more easily access the platforms that exist across the UK, to ensure less unused or over-ordered materials end up in landfill.”
The latest report (March 2020) from the Department for Environment, Food and Rural Affairs (DEFRA), states that in 2016 the UK generated 66.2 million tonnes of non-hazardous construction and demolition (C&D) waste.
Waste occurs for a number of reasons including onsite via over-ordering, incorrect orders, mishandling materials, offcuts, and unnecessary packaging of materials.
Access to the MEP Map is free, through a free membership of the Supply Chain Sustainability School. Anyone can join.
